Hermez Value Proposition

2 years ago   •   3 min read

By Polygon Hermez

Hermez Network Project offers unique properties that will provide value to the users and the community. Here we have laid down our guiding principles and condensed them into this 7 point document

Production ready solution

Hermez will launch a project in mainnet which is intended to be a usable token transfers network from day one. This product will have support, maintenance and technological evolution to provide users with the most updated functionalities with the right risk management.

The first release starts with the specific scope of token transfers implemented with a technological stack and cryptography setup considered the most tested to date.


Hermez is called a network because the model is natively decentralized.

It's a layer 2 construction and intends to be able to process thousands of transactions per second, so the consensus algorithm has to be simple for one agent (coordinator) to process this amount of transactions at any given time.

Our model allows the network to be permission-less and censorship resistant for user transactions.


The decentralized model is implemented through a permissionless auction system for potential coordinators of the network to earn the right to process transactions during a slot of time.

The efficiency of this is realized in two vectors:

On one side, the auction model incentivizes the energy and cost efficiency of coordinators. They are pushed to process as many transactions as they can in order to collect the transaction fees, and to do so at the minimum operational cost, in order to be able to outbid other coordinators (and make money out of it).

On the other side, Hermez implements a zk-rollup based on zk-SNARKs proofs, the most efficient cryptographic construction in terms of batch cost in Ethereum.

Since the batches of transactions are a maximum of 2,000 in size, users will benefit from the scale and the underlying technology for potential maximum savings up to 97% compared to the Ethereum cost for a single token transfer.

Security in mind

Hermez is a layer 2 construction that leverages Ethereum not only by using its native tokens, but also by borrowing its security as a strong public blockchain. Every Hermez Network batch can be securely reconstructed from the proof and data posted in the Ethereum Blockchain.

Hermez’ implementation is based in iden3’s own technology (Circom and SnarkJS libraries) and the cryptographic technology which has been proven as the most robust so far, as used in the ZCash blockchain.

Finally, as a new network with a bootstrap period, Hermez has transitory security measures to protect the users of the system, with the objective to remove them and leave it fully decentralized once the Network has been battle-tested.

Part of the community

Hermez is designed to contribute to the community, since the project wouldn’t be possible without it. Innovations in scalability are a rare opportunity to realign incentives around the community and the public goods they provide.

40% of the generated value in the network will be sent to a donation mechanism designed to benefit the projects behind the ecosystem’s public goods.. It will start by contributing to Gitcoin Grants, but other pools might be enabled in the future.

Hermez will open source all the code of the protocol and the coordinator, is open to contributions, and has committed to contribute to the creation of a L2 ecosystem for initiatives such as a better L2 interoperability.

Focused on usability

Zk-rollups provide the technology for instant finality of transactions, which Hermez understands is a key feature for usability.

Hermez protocol also provides a guarantee that user transactions can not be censored and that all funds can always be sent back to layer 1.

Layer 2 solutions increase complexity for the users, but the Hermez project focus is to provide the best possible usability for user onboarding, transactions and reduce friction and confusion between layers.


The Hermez Project derives from the iden3 initiative, where a highly qualified team works to implement the vision of a universal and private-by-design self-sovereign identity. Scalability was required for the identity protocol to be universal and individuals could issue claims on other identities for (almost) free.

Symbiotically, Hermez Network is expected to benefit from the advancements in identity infrastructure such as validation, private credentials and reputation for an improved usability and extend the range of potential use cases of a high throughput transaction network.

Hermez will guide its efforts towards becoming an infrastructure which can serve the maximum number of users.

Stay tuned with our progress towards Layer-2 scaling on Twitter under the handle @Hermez_network and sign up for Telegram updates here.

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