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


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

The workforce introduced the elevate in a tweet:

StarkWare, which previously raised $30 million in 2018, presents 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 fashioned offers with decentralized exchange projects DiversiFi and dYdX, and it extra just lately introduced an providing targeted on nonfungible tokens, or NFTs, permitting for extremely cost-effective mass minting:

To date, nonetheless, rival Ethereum Digital Machine chains and complimentary “sidechains” have absorbed the vast majority of the refugees fleeing Ethereum charges. Binance Good Chain is now dwelling 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 venture to money in on rising demand for scaling options as nicely, because the rising visitors has been a boon for scaling-solution tokens.

A number of tasks are additionally investigating utilizing Optimistic Rollups, an identical answer 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 could possibly be applied 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 reasonably than later.