Hermez Network

HEZ Price

About Hermez Network (HEZ)

Hermez Network is a decentralized zero-knowledge rollup designed to scale payments and token transfers on the Ethereum blockchain.

• The protocol utilizes zero-knowledge cryptography to process batches of transactions off-chain, significantly reducing fees and increasing throughput.
• It features a unique consensus mechanism that reinvests a portion of network auction bids into public goods.
• Following its acquisition by Polygon, the network has transitioned into Polygon Hermez, integrating its technology into the broader ecosystem.

What Is Hermez Network

Hermez Network is a Layer 2 scaling solution that addresses the high transaction costs and limited throughput of the Ethereum mainnet. By employing zero-knowledge rollups, the network compresses thousands of transactions into a single batch, which is then verified on the base layer using a compact cryptographic proof. This architecture ensures that the network inherits the security properties of the underlying blockchain while providing a more efficient environment for value transfer.

Value moves through the system as users deposit assets into the Hermez smart contract on Ethereum, after which they can transact within the Layer 2 environment at a fraction of the original cost. The HEZ token was originally designed to facilitate the network's decentralized auction system, where coordinators bid for the right to process transaction batches. As the ecosystem grows, the scalability provided by the rollup allows for higher transaction volumes without a corresponding increase in network congestion.

What Makes Hermez Network Unique

• Proof of Donation Mechanism: Unlike traditional networks that burn or redistribute all fees to validators, Hermez directs 40% of the winning bids from its block-creation auctions to public goods via Gitcoin grants.
• Strategic Integration: As the first major blockchain project to be acquired and merged into another (Polygon), it represents a significant milestone in industry consolidation and technical synergy.
• High Efficiency: The protocol claims to offer a throughput improvement of over 133x compared to standard Ethereum transactions, with cost reductions exceeding 90% for token transfers.

What Can You Use Hermez Network for?

• Low-Cost Token Transfers: Users can send and receive supported tokens with significantly lower fees than those on the Ethereum mainnet.
• Network Coordination: Participants can engage in the decentralized auction process to become coordinators, responsible for batching transactions and earning rewards.
• Public Goods Funding: By participating in the network, users indirectly support the funding of Ethereum-based public goods through the Proof of Donation system.
• Token Migration: HEZ holders can exchange their tokens for MATIC (now POL) as part of the ongoing integration with the Polygon ecosystem.

How Does Hermez Network Work?

Hermez Network operates as a zk-rollup, a method that moves computation and state storage off-chain while keeping a minimal amount of data on the main blockchain. The system uses zk-SNARKs, which are cryptographic validity proofs that allow the network to confirm the correctness of a transaction batch without revealing the underlying data. This ensures computational integrity and instant finality once the proof is recorded on the Ethereum mainnet.

The network uses an auction-based model for its internal consensus. Coordinators bid HEZ tokens to win the right to create the next batch of transactions. The winning coordinator collects the transaction fees from that batch, while a portion of their bid is donated to the ecosystem. This decentralized approach ensures that any node can permissionlessly join the network as a coordinator, provided they participate in the auction process.

Team Info and Investors

Hermez Network was originally developed by the team behind Iden3, a project focused on decentralized identity and zero-knowledge technology. In August 2021, the project was acquired by Polygon in a deal valued at approximately $250 million at the time, leading to the formation of Polygon Hermez. The governance and development of the protocol are now integrated into the Polygon Labs framework, with a focus on building a comprehensive suite of zero-knowledge scaling solutions.

Where can you buy Hermez Network?

HEZ tokens can be traded on decentralized exchanges. The most popular exchange to buy and trade Hermez Network is Uniswap V2 (Ethereum), where the most active trading pair HEZ/USDT has a trading volume of $23,217.70 in the last 24 hours.

What is the daily trading volume of Hermez Network (HEZ)?

The trading volume of Hermez Network (HEZ) is $63,391.33 in the last 24 hours, representing a 85.30% increase from one day ago and signalling a recent rise in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for Hermez Network (HEZ)?

Hermez Network (HEZ) reached an all-time high of $10.30 and an all-time low of $0.8836. It’s now trading -70.90% below that peak and 239.80% above its lowest price.

What is the market cap of Hermez Network (HEZ)?

Market capitalization of Hermez Network (HEZ) is $33,248,069 and is ranked #585 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of HEZ tokens (11 Million tokens are tradable on the market today).

What is the fully diluted valuation of Hermez Network (HEZ)?

The fully diluted valuation (FDV) of Hermez Network (HEZ) is $33,248,069. This is a statistical representation of the maximum market cap, assuming the maximum number of 11 Million HEZ tokens are in circulation today. Depending on how the emission schedule of HEZ tokens are designed, it might take multiple years before FDV is realized.

How does the price performance of Hermez Network compare against its peers?

With a price decline of -1.90% in the last 7 days, Hermez Network (HEZ) is outperforming the global cryptocurrency market which is down -4.80%, while outperforming when compared to similar Smart Contract Platform cryptocurrencies which are down -5.30%.

How to add Hermez Network (HEZ) to MetaMask?

Adding Hermez Network (HEZ) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import HEZ as a token. You can copy HEZ’s contract address (0xeef9f339514298c6a857efcfc1a762af84438dee) and import it manually, or if you've installed MetaMask's chrome extension, add HEZ to MetaMask with one click on CoinGecko.

Add HEZ to MetaMask.