Enterprise Capital (VC) agency Paradigm is main a considerable $225 million funding spherical for a brand new Layer 1 (L1) community, that goals to compete with the Ethereum (ETH) blockchain. Different notable members embrace VC corporations Electrical Capital and Greenoaks.
In accordance with a current Fortune Journal report, Monad Labs, the corporate behind the blockchain venture, goals to compete with established gamers akin to Solana (SOL) and Ethereum and the Layer 1 blockchain protocol Sui (SUI).
Monad’s Rebuilt Ethereum Blockchain
Per the report, Monad’s initiative is to rebuild the Ethereum blockchain from the bottom up, whereas retaining the power to execute good contracts. The venture goals to realize sooner transaction speeds, deal with greater volumes, and supply decrease prices in comparison with present networks.
Notably, Monad ensures compatibility with Ethereum’s programming infrastructure, generally known as the Ethereum Digital Machine (EVM). This compatibility permits builders to port functions constructed for Ethereum, guaranteeing a fluid transition to the brand new blockchain.
Keone Hon, the founding father of Monad, said in an unique interview with Fortune that the corporate has devoted roughly two years to growing its blockchain answer.
Hon famous that Monad Labs stands out by totally supporting the EVM bytecode normal. Builders use this normal to create decentralized functions (dApps) on platforms akin to Ethereum, Polygon, Avalanche, Binance Sensible Chain, and Optimism.
In accordance with Avichal Garg, managing associate of Electrical Capital, practically 90% of builders working throughout numerous crypto ecosystems focus solely on EVM chains.
This statistic, highlighted in a current report by Electrical Capital, demonstrates the numerous attraction of EVM compatibility. Though Monad doesn’t endure an entire redesign of its programming language like another blockchains, it nonetheless advantages from the widespread utilization and familiarity of the EVM.
Blockchain-Powered Exchanges?
In accordance with the report, Monad plans to launch its mainnet by the top of the 12 months and expects to launch a testnet within the coming months. The corporate, which presently employs round 30 folks, can also be seeking to launch a native token, though particulars of its launch alongside the mainnet haven’t been disclosed.
Whereas Keone Hon emphasised the pursuit of mainstream adoption, he identified that Monad’s preliminary use case is prone to be “high-frequency” buying and selling exercise, drawing on his personal expertise at Leap Buying and selling, an information and research-driven buying and selling agency.
Hon emphasised the necessity for a extremely performant blockchain to allow exchanges on the dimensions of Nasdaq or Chicago Mercantil Trade (CME), which course of hundreds of thousands to billions of transactions every day.
Lastly, Hon additionally highlighted the potential for a blockchain with excessive transaction capability and low charges to allow numerous functions, akin to gaming. He cited examples the place blockchain-based video games, akin to RuneScape, require frequent updates of participant statistics, necessitating low-cost and quick transactions on the blockchain.
On the time of writing, ETH was buying and selling at $3,497, down practically 5% up to now 24 hours.
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