• Polygon Labs has acquired blockchain startup Toposware for $30 million, bringing its investment in zero-knowledge technology to $1 billion.

• The acquisition includes 11 engineers and enhances Polygon’s layer-2 Ethereum networks.

Polygon Labs has announced a significant expansion of its investments in zero-knowledge (ZK) technology by acquiring blockchain startup Toposware. This strategic move brings Polygon’s investment in ZK technology to $1 billion, enhancing its Ethereum-based layer-2 networks.

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Toposware engineers will join existing Polygon zk development teams to further drive innovation in AggLayer, Polygon CDK, Polygon zkEVM, and Polygon PoS as soon as it is zk-enabled.

more here: https://t.co/obX67Dygsa

— Polygon | Aggregates (@0xPolygon) June 4, 2024

Toposware brings elite engineers and a robust technology stack to Polygon

Polygon Labs, a prominent player in the Ethereum ecosystem, has integrated Toposware’s team and technology into its operations. Valued at $30 million, Toposware brings 11 engineers and a robust development stack for Polygon’s efforts. This acquisition is part of Polygon’s broader vision for a “unified web3” and marks its third investment in ZK technology, following previous purchases of Hermez and Mir in 2021.

Zero-knowledge encryption it is fundamental to blockchain technology; allows transaction validation without revealing sender or recipient details. This improves privacy and scalability, which are central to Polygon’s mission to improve the operability and connectivity of Ethereum.

The long-standing partnership between Polygon and Toposware has already produced significant progress, most notably with the zkEVM type 1 prover. This technology allows Ethereum Virtual Machine-enabled networks to leverage ZK-based chains, improving their integration with the network main of Ethereum. According to Polygon Labs, this move will significantly improve interoperability and cross-chain connectivity.

The acquisition also incorporates Toposware’s technology into Polygon’s Proof-of-Stake (PoS) network, which will now be part of the AggLayer protocol. AggLayer combines a cryptocurrency bridge with a ZK mechanism, further strengthening cross-chain operation.

Strategic vision and implications for the sector

Marc Boiron, CEO of Polygon Labs, highlighted the acquisition as a perfect fit to advance the ecosystem. He highlighted Toposware’s expertise in deep cryptography and zero-knowledge, which will bring more open source contributions to the Ethereum community.

Polygon’s increased focus on ZK Technology aligns with a growing trend in the industry. Zero-knowledge proofs are preferred as a scaling mechanism for Ethereum Virtual Machine (EVM) chains due to their efficiency in improving transaction speed and reducing costs. While optimistic rollups are an alternative, experts like Ethereum co-founder Vitalik Buterin advocate ZK technology, citing its superior performance.

This strategic acquisition by Polygon Labs highlights its commitment to improving blockchain technology through significant investments in zero-knowledge cryptography. By integrating Toposware’s capabilities, Polygon is set to advance its vision of a more interconnected and scalable Ethereum ecosystem.

Implications for developers and users

The acquisition has far-reaching implications for developers and users within the Ethereum ecosystem. By leveraging ZK technology, Polygon aims to make EVM chains more accessible and easy to use without compromising security and decentralization. This approach provides a smoother transition for developers relying on Polygon’s layer 2 networks. Furthermore, the integration of ZK-proof chains will likely lead to more efficient and economical solutions for end users.

As before reported By Crypto News Flash, Polygon’s total value locked (TVL) recently decreased from $1 billion to $942 million. This decline has led to a significant drop in network revenue and fees. Additionally, reducing code and core developer commits may slow down future updates. MATIC price increased to $0.7156, reflecting a 3% increase over 24 hours.

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Blockchain-based platform, Cricket Foundation has launched the first of its kind NFT named “CricketCrazy.io”. It is the world’s first NFT (non-fungible token) marketplace exclusively for cricket. The Cricket Foundation was co-founded by former India Test cricketer Parthiv Patel and has attracted around 120 partners from the world of cricket including Wasim Akram, VVS Laxman and Lance Klusener. The Cricket Foundation marks the beginning of a new era where a cryptocurrency has effectively entered the cricket space. Blockchain is the same type of technology that also runs the world of cryptocurrencies, but NFTs are not cryptocurrencies per se.

The CRIC token will be the means of transaction for all applications built on the platform. Cricket Token (CRIC) was successfully listed on Indian and international cryptocurrency exchanges last week and its value has quickly skyrocketed to a market capitalization of over $200 million.

The added value is the presence on the platform of around 50 unique moments from the history of cricket. The platform will add approximately 5 non-fungible tokens (NFTs – a unique digital asset designed to represent ownership of a virtual item) of iconic moments every day, with over 20,000 cricket media assets in the library to choose from, provided by its various partners mentioned above.

Parthiv Patel, speaking at the virtual launch of ‘CricketCrazy.io’, had this to say about the concept: “For us it is a new way to interact with our fans, CricketCrazy presents a unique digital offering to cricketers and franchises to improve their reach as well as the relationship with fans by giving them a sense of ownership, involving them in community decisions and keeping them involved in the game. For fans, NFTs are the only way to own digital sports goods and collectibles.

Apart from what the fans get, the cricketers will benefit from the monetary gain. Considering that the professional life of most cricketers is short, they should take care of their finances after retirement, says Patel.

He added: “We’re talking about 35-36 (years of age), not many players actually play until they’re 40. So, you have to manage your finances well. Once you retire, it’s very difficult to move on.” with the same flow, so platforms like this (Cricket Foundation), if you can explore it, you can sustain it for life. So finance is a very important part of every cricketer’s life now.”

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• By Chris Vallance and Tom Gerken
• Technology reporters

May 17, 2023

Updated May 17, 2023

Image source, Getty Images

MPs have urged the Government to treat retail investments in cryptocurrencies such as Bitcoin as a form of gambling.

Their value could change dramatically and consumers would risk losing their entire investment, features that closely resemble gambling, the Treasury Select Committee has found.

He also criticized the Royal Mint’s abandoned plans to create a non-fungible token (NFT).

The Treasury told BBC News it did not support the use of gambling regulation.

The risks posed by cryptocurrencies were “typical of those that exist in traditional financial services and it is the regulation of financial services – rather than the regulation of gambling – that has the proven ability to mitigate them,” an official told BBC News of the Treasury.

‘Losing everything’

The committee said “unsecured” cryptocurrencies – typically cryptocurrencies with no fixed value – expose “consumers to the potential for substantial gains or losses, without serving any useful social purpose.”

“These features resemble gambling more than a financial service,” the deputies added.

The charity GamCare told the BBC that, over the past two years, it has heard from more than 300 people who said they were struggling to invest in cryptocurrencies and other forms of online financial markets.

Research cited by lawmakers found that 40% of new Bitcoin users were men under 35, commonly identified as the most risk-taking segment of the population.

Castle Craig, a rehab clinic specializing in treating people with addictions, connected us with a young man who had lost a lot with cryptocurrencies.

The former gambling addict told BBC News that although he had given up gambling, he had turned to cryptocurrencies.

“In my head, I just thought this wasn’t gambling, it was just an investment, but it clearly wasn’t,” he said.

He said he had lost around £150,000 investing in cryptocurrencies, including borrowed money, and that checking his phone to see how the market had moved had become an obsession. “There was no interruption, I was just sitting on the phone looking at it constantly and I couldn’t sleep,” she recalled.

He said he supports the committee’s approach. “Cryptocurrencies are a game of chance,” she said. “You can lose everything you have.”

Image source, Getty Images

Former sports minister and gambling campaigner, Conservative MP Tracey Crouch, welcomed the report.

“Right now, cryptocurrencies look like a Wild West town without a sheriff,” he said.

“However, I am sure that, if given the right resources, the Gambling Commission could bring some order to this complex, risky and often confusing area which has unwittingly sucked consumers in by advertising through sports such as football, giving a false impression to fans and others who are safe and protected.”

Cryptocurrency sponsorship is now widespread among football clubs, but the Premier League recently decided to end gambling sponsorship on the front of their shirts from the start of the 2026 season. a voluntary move and not required by law.

The report provides few details on what gambling regulation applied to cryptocurrencies might mean. Congresswoman Harriett Baldwin, the committee’s chair, said the report recommended that “the kind of speculative enticement of people to buy particular cryptocurrencies” be treated like gambling.

He said the committee had heard plenty of evidence of how “football clubs are using this as a way to extract money from their loyal supporters”.

“Fun investment”

In February, the government asked people to comment on proposals for the financial regulation of cryptocurrencies.

But the committee said the government wants to regulate cryptocurrencies because financial services would create the false impression that they are as safe as traditional investments – a “halo effect… leading consumers to believe this activity is safer than it is be or protected when it is not”.

The committee’s report found that surveys suggest that around one in 10 people in the UK hold crypto assets, with the majority investing in cryptocurrencies such as Bitcoin and Ethereum.

The most mentioned reason for holding crypto assets was that they were a “fun investment.”

Do you invest in cryptocurrency? Please share your experiences.

Global hub

Cryptocurrencies are just one type of asset. More generally, MPs said that while they support innovation, the potential benefits of cryptocurrency-related technologies remain uncertain.

“Meanwhile, the risks posed by cryptocurrencies to consumers and the environment are real and present.”

The government is excited about the potential of cryptocurrencies. While Chancellor, Rishi Sunak announced his ambition to make the UK a global hub for technology.

The Treasury believes cryptocurrencies offer opportunities, but said it is “vigorously regulating the market, addressing the most pressing risks first in a way that promotes innovation.”

CryptoUK’s Ian Taylor said the financial sector is embracing cryptocurrencies: “Professional investment managers see Bitcoin and other crypto assets as a new alternative investment class – not as a form of gambling – and institutional adoption of unsecured crypto assets has increased significantly.”

Recognizing the potential risks and benefits, the committee recommended a balanced approach, but advised the government to avoid spending public resources on projects without a clear beneficial use.

“The government’s recent foray into seeking (and subsequently abandoning) production of a non-fungible Royal Mint token is a case in point,” the MPs wrote.

“It is not the government’s job to promote particular technological innovations for their own sake.”

NFTs are “one-of-a-kind” digital assets that can be bought and sold like any other asset – they are often associated with digital images.

The committee will review central bank digital currencies in a separate report.

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The Financial Intelligence Unit (FIU) of the Ministry of Finance has issued show-cause notices to nine offshore cryptocurrency and virtual digital asset platforms, such as Binance and Kucoin, for non-compliance with the anti-money laundering law.

The FIU has also written to the Ministry of Electronics and Information Technology to block the URLs of these nine entities which are operating illegally without complying with the provisions of the PML Act in India.

Apart from Binance and Kucoin, the other Virtual Digital Asset Service Providers (VDA SPs) notified for failing to register as reporting entities with the FIU-India are Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global and Bitfenex.

Virtual digital asset service providers operating in India (both offshore and onshore) and engaged in activities such as trading between virtual digital assets and fiat currencies, transfer of virtual digital assets, custody or administration of virtual digital assets or tools that allow control over virtual digital assets, etc. must be registered with FIU IND as a “reporting entity” and comply with the set of obligations set out in the Prevention of Money Laundering Act (PMLA) 2002.

The obligation is asset based and is not conditional on physical presence in India.

The regulation imposes reporting, record keeping and other obligations under the PML Act on VDA SPs, which also includes registration with the FIU IND, the finance ministry said.

“As part of the compliance action against offshore entities, the Financial Intelligence Unit India (FIU IND) has issued Show Cause compliance notices to the following nine Offshore Virtual Digital Asset Service Providers (VDA SPs) under Section 13 of Prevention of Money Laundering Act, 2002 (PMLA),” the ministry said in a statement.

Under the IT Act, reporting entities are required to file financial transaction returns (SFTs) containing details of certain financial transactions or any reportable accounts maintained by them during the year with the tax department.

In March, the government had brought SP VDAs under the anti-money laundering and countering the financing of terrorism (AML-CFT) framework under the provisions of the PMLA.

To date they have registered with FIU IND 31 SP VDA.

However, several offshore entities that cater to a substantial portion of Indian users have not been registered and fall under the Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) framework, it added.

FIU-IND is the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspicious financial transactions to law enforcement agencies and foreign FIUs.

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