Chain Reaction, a Tel Aviv-based blockchain startup, introduced it has raised $70 million as a part of its Series C funding spherical. The goal of the corporate is to develop its engineering workers to speed up the manufacturing of its blockchain-focused silicon and collaborate within the growth of its cryptographic-focused chips.
Chain Reaction Raises $70 Million in Series C Funding Round
Chain Reaction, a startup that focuses on constructing blockchain-based silicon, introduced that it has raised $70 million as a part of its Series C funding spherical. The spherical, which was led by Morgan Creek Digital, a part of Morgan Creek Capital — a VC firm co-founded by crypto influencer Anthony “Pomp” Pompliano — noticed the participation of Hanaco Ventures, Jerusalem Venture Partners, KCK Capital, Exor, Atreides Management, and Blue Run Ventures.
With this capital inflow, the corporate expects to enhance its engineering headcount so as to hasten the event of its blockchain silicon merchandise, estimated to attain the market later this yr. According to Alon Webman, co-founder and CEO of Chain Reaction, the mass manufacturing of the primary batch of chips, known as “Electrum,” will begin in Q1 2023.
According to stories from Reuters, Electrum can be a extremely environment friendly ASIC chip designed for bitcoin mining, a discipline dominated by firms like Bitmain. The fabless startup enrolled the companies of TSMC, one of many largest foundries in Taiwan, to mass produce the chips.
While the corporate didn’t disclose its valuation, Techcrunch estimates it to be round $500 million, having raised $115 million since its founding.
Blockchain Chips and Homomorphic Encryption
Chain Reaction goals to use its first batch of blockchain chips as a trampoline to creating extra superior silicon, designed to sort out cryptographic issues.
The extra superior chips can be centered round a way known as homomorphic encryption, which allegedly might permit them to make operations with encrypted information with out decrypting it within the first place.
This might have a number of functions within the cryptography discipline, permitting for extra environment friendly and personal operations with out having to put plain data within the open when working with information.
The firm is optimistic about having an answer for this cryptographic difficulty, even with at this time’s restricted processing capabilities. Chain Reaction co-founder and CEO Alon Webman acknowledged:
We suppose our answer will make homomorphic encryption viable. We have distinctive structure and we additionally perceive the constraints on compute and reminiscence amongst processors at this time. We have the answer wanted to make it potential.
Chain Reaction expects to launch this chip someday on the finish of 2024.
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