Ethereum ecosystem contributor Polygon Labs has increased its investment in zero-knowledge (ZK) technology to $1 billion by acquiring the startup Toposware, a blockchain builder valued at $30 million.

Polygon Labs, the entity behind the MATIC ecosystem, has integrated Toposware’s team of 11 engineers and development stack to further its vision of a unified web3. This move marks Polygon’s third investment in ZK technology, following its previous acquisitions of Hermez and Mir in 2021.

Zero-knowledge technology enables blockchains to verify transactions without revealing details about the parties involved. This cryptographic technology is frequently used by Polygon Labs to scale its Ethereum-based layer-2 networks.

“Today, we are pleased to welcome Toposware to the Polygon Labs team. Toposware has made significant progress in zk-based interoperability and Type 1 zkEVM development.”

The acquisition strengthens the long-standing partnership between Polygon Labs and Toposware, particularly their joint work on a Type 1 zkEVM prover. This technology allows any Ethereum Virtual Machine-compatible network to transition into ZK-proof-based chains, enhancing connectivity and operability with Ethereum’s mainnet.

By acquiring Toposware, Polygon’s proof-of-stake (PoS) network will also integrate with AggLayer, a decentralized protocol combining a cryptocurrency bridge and a ZK mechanism to improve cross-chain interoperability.

Polygon Labs CEO Marc Boiron emphasized that Toposware’s expertise in deep cryptography and zero-knowledge technology aligns perfectly with Polygon’s goals. This acquisition aims to drive more open-source contributions within the Ethereum community.

The focus on ZK technology is part of a broader industry trend towards using it as a scaling mechanism for EVM chains. Besides ZK proofs, developers can also use optimistic rollups to build layer-2 networks. The goal is to make EVM chains more user-friendly for developers and users without compromising security and decentralization.

Experts, including Ethereum co-founder Vitalik Buterin, have shown a preference for ZK technology over optimistic rollups, citing its cost-effectiveness and faster processing times.

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