Paradigm Drives $225M Funding Round For Monad Labs, Blockchain Rival To Ethereum, Solana
10 April 2024 - 12:00AM
NEWSBTC
Venture Capital (VC) firm Paradigm is leading a substantial $225
million funding round for a new Layer 1 (L1) network, that aims to
compete with the Ethereum (ETH) blockchain. Other notable
participants include VC firms Electric Capital and Greenoaks.
According to a recent Fortune Magazine report, Monad Labs, the
company behind the blockchain project, aims to compete with
established players such as 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 ground up, while retaining the
ability to execute smart contracts. The project aims to achieve
faster transaction speeds, handle higher volumes, and offer lower
costs compared to existing networks. Notably, Monad ensures
compatibility with Ethereum’s programming infrastructure, known as
the Ethereum Virtual Machine (EVM). This compatibility allows
developers to port applications built for Ethereum, ensuring a
fluid transition to the new blockchain. Related Reading: Is Bitcoin
Headed For A Crash? Analysts Cite Possible Downtrend Keone Hon, the
founder of Monad, stated in an exclusive interview with Fortune
that the company has dedicated approximately two years to
developing its blockchain solution. Hon noted that Monad Labs
stands out by fully supporting the EVM bytecode standard.
Developers use this standard to create decentralized applications
(dApps) on platforms such as Ethereum, Polygon, Avalanche, Binance
Smart Chain, and Optimism. According to Avichal Garg,
managing partner of Electric Capital, nearly 90% of developers
working across various crypto ecosystems focus exclusively on EVM
chains. This statistic, highlighted in a recent report by
Electric Capital, demonstrates the significant appeal of EVM
compatibility. Although Monad does not undergo a complete redesign
of its programming language like some other blockchains, it still
benefits from the widespread usage and familiarity of the EVM.
Blockchain-Powered Exchanges? According to the report, Monad
plans to launch its mainnet by the end of the year and expects to
launch a testnet in the coming months. The company, which currently
employs around 30 people, is also looking to launch a native token,
although details of its launch alongside the mainnet have not been
disclosed. While Keone Hon emphasized the pursuit of mainstream
adoption, he pointed out that Monad’s initial use case is likely to
be “high-frequency” trading activity, drawing on his own experience
at Jump Trading, a data and research-driven trading firm. Hon
emphasized the need for a highly performant blockchain to enable
exchanges on the scale of Nasdaq or Chicago Mercantil Exchange
(CME), which process millions to billions of transactions daily.
Related Reading: Bitcoin To $150,000 Is “Programmed” With Halving
Approaching: Analyst Lastly, Hon also highlighted the potential for
a blockchain with high transaction capacity and low fees to enable
various applications, such as gaming. He cited examples where
blockchain-based games, such as RuneScape, require frequent updates
of player statistics, necessitating low-cost and fast transactions
on the blockchain. At the time of writing, ETH was trading at
$3,497, down nearly 5% in the past 24 hours. Featured image
from Shutterstock, chart from TradingView.com
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