Iden3 Unveils Zero-Knowledge Rollup To Support Ethereum-Based Community Pprojects
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Iden3, an open-source set of tools for self-sovereign identities on public blockchains, is developing a zero-knowledge (zk) rollup focused on significantly increasing the scalability of transactions on top of the Ethereum network. ZK-Rollup is a layer 2 construction that scales Ethereum by rolling multiple transfers into a single transaction.
Dubbed Hermez, Iden3’s ZK-Rollup will reportedly help scale the capacity of Ethereum. According to Iden3, Hermez will be able to execute up to 2,000 transactions per second — a sizable increase from the 15 transactions per second currently possible using the Ethereum network alone. Transactions happening on Hermez are not dependent on the gas prices of mainnet which significantly reduces the cost of transactions.
Hermez will also be the first of its kind to introduce Proof of Donation, a decentralized bidding mechanism that will reinvest 40% of earnings in community protocols and teams building projects for the industry.
“The mechanism invites interested network coordinators to compete in an auction bidding Hermez tokens, HEZ, where the highest bidder wins the right to create the next block and collect transaction fees,” the company said. “Forty percent of earnings generated by the auction process will be reinvested back into Ethereum community projects. Initially, funds will go directly to the Gitcoin Grant’s Quadratic Matching rounds, while a future governing DAO is established to decide other community quadratic pools to distribute funds as they become available.”
Jordi Baylina, Co-Founder of Iden3, said that it’s clear that zk-rollups will be the dominant scaling paradigm for at least the next couple of years in our industry.
“Hermez will focus on transactions that will bring ease to scaling payments and token transfers on the Ethereum network, and also give back to the community with its unique Proof of Donation feature,” Baylina said.