Hermez Network HEZPrice $ 3.51

Hermez is a Layer2 zk-rollup platform that is borderless, secure, and decentralized. It is built directly on top of the Ethereum blockchain and enables anyone to transfer digital assets with minimal transaction fees and fast speeds. The team hopes that Hermez will help to provide universal access to finance and reduce costs for P2P payments and arbitrage, as well as encourage the use of digital assets overall.

HEZ was originally Hermez’ native token created as an ERC-20 standard utility token that can be used in the consensus of the platform. However, since Hermez Network has merged with Polygon, the HEZ token has been indexed to MATIC token and will become Polygon Hermez zkRollup utility token.

What are Hermez Network’s key features and how does it work?

The Hermez Network is able to offer faster and cheaper transactions due to its use of zero-knowledge technology. All funds are held in smart contracts on the main-hain, however, the transaction validation process is carried out both on and off-chain. Token transactions are scaled by compressing and aggregating thousands of transactions into batches. A zk-SNARK verifies each transaction in a batch. Batches are then validated on Ethereum. Essentially, this means that computations are handled off-chain and verified on-chain, Ethereum acting as a store of data. This allows Hermez network to remain permissionless and censorship-resistant.

Network Coordinators (transaction batch creators within the Hermez ecosystem, comparable to block producers on other networks) are chosen via an auction system. Potential coordinators can take part in the bid by submitting at least 10 HEZ tokens that they are willing to donate to become the batch creator. The winning bid, the bid with the highest amount of tokens bidded, becomes the address assigned to create the next batch. This process is known as proof-of-donation. Donations go towards the protocols and services that run on top of Ethereum.

All tokens placed during the bidding process will either be burned (30%), transferred to a donations account (40%), or allocated to incentive programs (30%).

Users are another key actor of the Hermez ecosystem. They can access the Hermez Network via a specially created interface in order to deposit, transfer, and register their address with Hermez.

Historical events:

In 2021 years, Hermez Network has merged with Polygon Network. The HEZ token has been discontinued and will be exchanged for MATIC. For more information kindly check these announcements: 1. https://blog.hermez.io/polygon-hermez-merge/#:~:text=We're%20delighted%20to%20announce,bringing%20the%20world%20to%20Ethereum. 2. https://twitter.com/0xPolygonHermez/status/1434807743764844546