Hermez Network

What is Hermez Network?

Polygon's Hermez is an open-source ZK-Rollup designed for secure, low-cost, and user-friendly token transfers within the Ethereum ecosystem. Seamlessly integrating into Ethereum's fabric, Polygon Hermez facilitates cost-efficient token transfers and swaps with high throughput. Its decentralized and open-source architecture, coupled with computational integrity through zero-knowledge technology, significantly reduces transfer costs, paving the way for more accessible financial services and mainstream adoption.

Development Goals

The driving force behind Polygon Hermez is the vision of universal access to finance. The project focuses on an open-source scalability model based on zero-knowledge technology (zk-rollup), aiming to simplify and reduce costs for person-to-person payments, arbitrage opportunities, and promote the broader adoption of digital currencies. The decentralization of the Polygon Hermez protocol establishes a cryptographic foundation optimized for low-cost token transfers, supporting future payment and financial solutions, with the added plan of creating a private self-sovereign identity to bolster the DeFi ecosystem.

Project Qualities

Decentralized: Polygon Hermez stands out as a natively decentralized network, operating as a Layer 2 construction processing thousands of transactions per second. Its consensus algorithm ensures simplicity, allowing a designated agent (coordinator) to handle a substantial number of transactions at any given time. The model fosters permissionless and censorship-resistant user transactions.

Efficient: Implemented through a permissionless auction system, Polygon Hermez incentivizes coordinators to process transactions efficiently. Coordinators engage in an auction to earn the right to process transactions during a specific time slot, promoting energy and cost efficiency. The use of zk-rollup based on zk-SNARKs proofs enhances the cryptographic efficiency of the system, making it a cost-effective construction within Ethereum.

Security in Mind: Leveraging Ethereum's security as a robust public blockchain, Polygon Hermez ensures security by reconstructing every network batch securely from the proof and data posted in the Ethereum Blockchain. Built on iden3's technology and cryptographic constructions proven in the ZCash blockchain, Polygon Hermez prioritizes a secure foundation.

Designed for Collaborative Economy

Polygon Hermez introduces a Proof-of-Donation mechanism through burn auctions, where 40% of the winning bid is returned as a donation to Ethereum public goods. This collaborative approach aims to realign incentives around community contributions and public goods.

Benefits of Integration and Using Polygon Hermez:

• Users: Polygon Hermez enables users to make secure payments in digital currencies through Ethereum's borderless infrastructure, reducing transfer fees by over 90%.
• Coordinators (Validators): Coordinators can earn the right to forge batches in an open and permissionless manner, collecting fees from processed transactions.
• Community: The project supports Ethereum ecosystem development through open-source smart contracts, Circom zero-knowledge circuits, and the Proof-of-Donation mechanism for the common good.
• Transaction Aggregators: Improved payment experiences are offered through low-cost transfers and swaps, maintaining the security of Ethereum L1.
• Token Issuers: Token issuers can add their tokens to the Polygon Hermez Network, making them available for scalable payments.

Hermez Network Team Background

The Hermez Network team is led by a diverse group of professionals with expertise in technical, project management, and business development domains. Jordi Baylina serves as the Technical Lead, contributing his technical prowess. David Schwartz takes on the role of Project Lead, steering the overall direction. Antoni Martin, in Business Development, focuses on strategic growth. Miriam Sancho, as the Executive Director, oversees organizational leadership. The software engineering team, comprising David Ruiz, Eduardo Antuña, and Carlos Matallana, brings technical innovation to the project. Miroslav Milenkovic, as Methodology & Project Manager, ensures efficient project execution.

Project Development

Polygon Hermez 2.0, the upcoming release, marks a significant advancement in decentralized Layer 2 scalability solutions for Ethereum. Building on the success of Hermez 1.0, which has been live since March 2021 and achieved its goal of scaling payments and transfers of ERC-20 tokens, Hermez 2.0 introduces a groundbreaking approach as a zero-knowledge Ethereum Virtual Machine (zkEVM).

Unlike its predecessor, Hermez 2.0 expands its functionality to provide support for smart contracts. This involves the execution of Ethereum transactions transparently, including smart contracts with zero-knowledge-proof validations. The architectural components of Hermez 2.0 include the Consensus Algorithm, zkNode software, zkProver, LX-to-LY Bridge, Sequencers, and Aggregators, creating a robust zkEVM system.

The Consensus Algorithm, transitioning from Proof-of-Donation (PoD) to Proof of Efficiency (PoE), ensures decentralization and simplifies the network's operational complexity. PoE addresses the vulnerabilities of PoD, enhancing network efficiency, security against attacks, and a fair balance between validation effort and network value. The exploration of coupling PoE with a Proof-of-Stake (PoS) model signifies a continuous commitment to optimizing Hermez 2.0's performance and security.