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

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

As Ethereum gas fees soar and the demand for scalability reaches fever pitch, layer-two scaling solution has announced today a $75 million Series B funding round led by Paradigm, Three Arrows, Alameda Research, Pantera Capital, and Sequoia, among others. 

The team announced the raise in a Tweet:

Our top trading bots

StarkWare, which previously raised $30 million in 2018, offers zero-knowledge rollup technology allowing for offchain computation, beefed up transactional throughput, and claims to offer mainnet-coparable security guarantees. CEO Uri Kolodny has cast shade in the past at Ethereum’s native scaling efforts, headlined by the forthcoming ETH 2.0 upgrade. Starkware has formed deals with decentralized exchange projects DiversiFi and dYdX, and more recently announced a NFT-focused offering allowing for highly cost-effective mass minting:

So far, however, rival EVM chains and complimentary “sidechains” have absorbed the majority of the refugees fleeing Ethereum fees. Binance Smart Chain is now home to implementations of many top projects (both official and dozens of unofficial “forked” versions), and Polygon-nee-Matic has attracted a number of NFT projects like Aavegotchi. 

Starkware isn’t the only project to cash in on growing demand for scaling solutions as well, as the growing traffic has been a boon for scaling solution tokens.

Multiple projects are also investigating using optimistic rollups, a similar solution 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 crowned optimistic rollups as a potential “100x” improvement to Ethereum throughput that could be implemented in a matter of “weeks.”

Given both the range of possible products — not to mention the eye-popping funding numbers flowing into them — it seems like a solution to scaling will come sooner rather than later.

Read on relating to Cointelegraph
Former chief of Russia's Wex crypto exchange arrested in Poland
BBC Russia has reported that Dmitry Vasiliev, the former chief of Russian cryptocurrency exchange Wex, has been arrested in Warsaw, Poland.Wex, which was...
Bitso to assist the launch of El Salvador's official Bitcoin wallet Chivo
Bitso, a major cryptocurrency exchange in Latin America, will be the core crypto service provider for El Salvador’s official Bitcoin (BTC) wallet, known...
DeFi proves that charities could be doing more with their money
Most of the stories coming out of the crypto industry this past year have centered around enormous numbers flowing in and out of the space. From stablecoins...
Digital intelligence must overcome challenges to solving crypto crimes
While the value of cryptocurrencies has varied wildly in the last year, this has not diminished crypto’s attractiveness to criminals. Many of them are moving...
Pro traders know it's time to range trade when this classic pattern shows up
A bull trend is formed when demand exceeds supply and a bear trend occurs when sellers overpower the buyers. When the bulls and bears hold their ground...
Kraken CCO will join crypto exchange Bitstamp to run US operations
Cryptocurrency exchange Bitstamp has hired Robert Zagotta, chief commercial officer of Kraken, to be the first CEO of its business in the United States. In...
Germany’s financial watchdog approves crypto custody license for Coinbase
The Federal Financial Supervisory Authority has issued a crypto custody business license for Coinbase’s Germany arm.In a Monday announcement, Germany’s...
Irish MEP calls for stringent crypto regulations in Europe
Chris MacManus, a Member of the European Parliament (MEP) representing Midland Northwest, Ireland, has called for strict crypto regulations in Europe.According...
Binance Coin (BNB) market cap passes Santander and UBS — What’s next?
2021 has been an impressive year for Binance Coin (BNB), which so far has rallied by more than 900%. One of the primary drivers of BNB's growth was continued...
Jamaica's central bank taps Irish tech outfit for CBDC project
Jamaica is the latest country making concrete efforts towards issuing its own sovereign digital currency.According to a press release by the Bank of Jamaica...
Blockchain Engineers Make As Much As AI Specialists
Engineers working in the blockchain domain are as demanded as those who work on artificial intelligence. Such a conclusion can be made from the statistics...
Reddit Co-Founder Alexis Ohanian Stands By His $20,000 Bitcoin Prediction
One of the Reddit founders and a constitutor of a venture capital firm Initialized Capital – Alexis Ohanian – confirmed he is standing by his bullish price...
Chinese President Xi Jinping Called Blockchain Applications “Breakthrough”
China is known to be harsh when it comes to cyber tokens and ICO. Despite this, it is still a world's centre for the DLT evolution. Moreover, the Chinese...
London Is Still Uneager To Endorse Cryptos
Being prevalent in a $5 trillion-per-day global foreign exchange market, London is yet to clarify its position concerning the endorsement of cryptos. However,...
South Korean Exchanges to Pay 24% Taxes on Cryptos As Officials to Declare Bitcoin Holdings
Last week was one of the breakneck fluctuations in the prices of all virtual coins, including bitcoin. However, the downhill swings were prevailing,...