EigenLabs declares $50 million in new funding
EigenLabs, which goals to make Ethereum as quick and versatile as centralized networks of servers like Amazon Net Companies, introduced on Tuesday a $50 million funding spherical led by Blockchain Capital.
Sreeram Kannan, the founder and CEO of EigenLabs in addition to an affiliate professor on the College of Washington, Seattle, declined to offer his firm’s implied valuation. Different traders within the spherical embody Coinbase Ventures, Polychain Capital, Electrical Capital, Hack VC, and Finality Capital Companions.
“One of many largest causes blockchains aren’t in a position to assist the unique imaginative and prescient of, ‘Hey, we’re going to do social networks and Uber and all these loopy issues,’ [is] as a result of infrastructure isn’t prepared for it,” Kannan advised Fortune.
He believes his firm’s flagship product, EigenLayer, is a possible resolution to blockchain’s infrastructure disaster, becoming a member of a flood of different infrastructure-focused startups that have secured hoards of cash throughout the latest crypto bear market.
“By reducing the price of belief and capital, [EigenLayer] opens up alternatives for entrepreneurs to experiment and construct whereas considerably easing the monetary limitations which have hindered innovation prior to now,” Bart Stephens, founder and managing associate at Blockchain Capital, stated in a press release.
Versus startup founders who instantly jumped from the dorm to boardroom, Kannan hails from academia. Throughout his masters and doctoral research, he researched peer-to-peer wi-fi networks and shortly grew concerned with blockchain know-how. When he landed on the Seattle campus of the College of Washington, he finally took depart to launch his personal startup. And in 2021, he based EigenLabs.
Kannan noticed that the efficiency of Ethereum, a cloud-computing community that’s decentralized—or not owned by one tech conglomerate—paled compared to the centralized networks of servers run by the likes of Amazon and Google.
Particularly, when builders on Ethereum run their code on the blockchain, they don’t have the selection of which servers, or Ethereum nodes, execute their packages. This creates redundancy, as many servers course of the identical code.
Builders constructing on prime of EigenLayer, Kannan says, will be capable to select which nodes run which components of an software’s code. This functionality permits programmers to create a division of computing labor, a functionality lengthy since obtainable to builders utilizing, say, AWS.
To indicate the utility of EigenLayer, he and his crew are constructing a “information availability layer” atop their product, or a sooner option to write information onto Ethereum’s blockchain, whose information inscription capabilities, Kannan says, are at the moment harking back to that of computer systems within the Nineteen Nineties.
However this is only one promise of EigenLayer, which Kannan now hopes to construct out as he provides workers, funds code audits, and helps builders searching for to construct together with his his product.
“Our focus,” he advised Fortune, “will likely be solely on maximizing the floor of innovation, which is what new issues are you able to construct, which goes to onboard the following group of software builders, which then onboards the following group of customers.”