VCs bet big on layer two as StarkWare raises a staggering $75 million


Related articles

As Ethereum gasoline charges soar and the demand for scalability reaches fever pitch, layer-two scaling resolution StarkWare has introduced on Wednesday a $75 million Collection B funding spherical led by Paradigm, Three Arrows, Alameda Analysis, Pantera Capital and Sequoia, amongst others. 

The group introduced the increase in a tweet:

StarkWare, which previously raised $30 million in 2018, provides zero-knowledge rollup know-how permitting for off-chain computation and beefed up transactional throughput, and it claims to supply mainnet-comparable safety ensures. CEO Uri Kolodny has cast shade in the past on Ethereum’s native scaling efforts, headlined by the forthcoming Ethereum 2.0 improve. StarkWare has shaped offers with decentralized exchange projects DiversiFi and dYdX, and it extra just lately introduced an providing centered on nonfungible tokens, or NFTs, permitting for extremely cost-effective mass minting:

To date, nevertheless, rival Ethereum Digital Machine chains and complimentary “sidechains” have absorbed nearly all of the refugees fleeing Ethereum charges. Binance Sensible Chain is now residence to implementations of many prime tasks (each official and dozens of unofficial “forked” versions), and Polygon (formally Matic) has attracted a number of NFT projects like Aavegotchi

StarkWare isn’t the one challenge to money in on rising demand for scaling options as properly, because the rising site visitors has been a boon for scaling-solution tokens.

A number of tasks are additionally investigating utilizing Optimistic Rollups, an identical resolution to StarkWare’s zero-knowledge rollups, to scale. MakerDAO is planning a “game-changing” Dai optimism bridge, and Ethereum co-founder and figurehead Vitalik Buterin has topped Optimistic Rollups as a possible “100x” improvement to Ethereum throughput that may very well be carried out in a matter of “weeks.”

Given the vary of attainable merchandise — to not point out the eye-popping funding numbers flowing into them — it looks like an answer to scaling will come sooner quite than later.