Chain Reaction, a Tel Aviv-based blockchain startup, announced that it has raised $70 million as part of its Series C funding round. The company aims to expand its engineering staff to ramp up production of its blockchain-focused silicon and support the development of its cryptographic-focused chips.
Chain Reaction raises $70M in Series C funding round
Chain Reaction, a startup that focuses on building blockchain-based silicon, announced that it has raised $70 million as part of its Series C funding round. The round, which was led by Morgan Creek Digital, part of Morgan Creek Capital – a VC firm co-founded by crypto influencer Anthony “Pomp” Pompliano – included Hanako Ventures, Jerusalem Venture Partners, KCK Capital, Exor, The involvement of Atreides Management was observed. , and Blue Run Ventures.
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With this capital infusion, the company hopes to increase its engineering workforce to accelerate the development of its blockchain silicon products, expected to reach the market later this year. According to Chain Reaction co-founder and CEO Alon Webman, mass production of the first batch of chips, dubbed “Electrum,” will begin in the first quarter of 2023.
According to reports From Reuters, Electrum will be highly efficient asic Chip designed for bitcoin mining, a field dominated by companies like Bitmain. The fabless startup enrolled the services of TSMC, one of the largest foundries in Taiwan, to mass-produce the chips.
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While the company did not disclose its valuation, TechCrunch Estimate It will be worth around $500 million after having raised $115 million since its inception.
Blockchain Chips and Homomorphic Encryption
Chain Reaction aims to use its first batch of blockchain chips as a springboard to develop more advanced silicon designed to tackle cryptographic problems.
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More advanced chips will center around a technique called homomorphic encryption, which reportedly could allow them to perform operations with encrypted data without decrypting it in the first place.
This could have many applications in the cryptography field, allowing for more efficient and private operations when working with data without having to keep the plaintext information out in the open.
The company is optimistic about solving this cryptographic problem even with today’s limited processing capabilities. Alon Webman, co-founder and CEO of Chain Reaction, said:
We think our solution will make homomorphic encryption feasible. We have a unique architecture and we also understand the limits of compute and memory among today’s processors. We have the solution you need to make this possible.
Chain Reaction expects to launch this chip in late 2024.
What do you think about Chain Reaction and its blockchain-based silicon? Tell us in the comments section below.
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