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 individuals embody VC corporations Electrical Capital and Greenoaks.
In keeping with a latest Fortune Journal report, Monad Labs, the corporate behind the blockchain undertaking, goals to compete with established gamers similar 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 flexibility to execute sensible contracts. The undertaking goals to attain sooner transaction speeds, deal with larger volumes, and supply decrease prices in comparison with current 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 commonplace. Builders use this commonplace to create decentralized functions (dApps) on platforms similar to Ethereum, Polygon, Avalanche, Binance Good Chain, and Optimism.
In keeping with Avichal Garg, managing companion of Electrical Capital, almost 90% of builders working throughout numerous crypto ecosystems focus completely on EVM chains.
This statistic, highlighted in a latest report by Electrical Capital, demonstrates the numerous attraction of EVM compatibility. Though Monad doesn’t bear a whole redesign of its programming language like another blockchains, it nonetheless advantages from the widespread utilization and familiarity of the EVM.
Blockchain-Powered Exchanges?
In keeping 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 individuals, can 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 more likely to be “high-frequency” buying and selling exercise, drawing on his personal expertise at Bounce 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 size of Nasdaq or Chicago Mercantil Change (CME), which course of hundreds of thousands to billions of transactions day by day.
Lastly, Hon additionally highlighted the potential for a blockchain with excessive transaction capability and low charges to allow numerous functions, similar to gaming. He cited examples the place blockchain-based video games, similar 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 almost 5% prior to now 24 hours.
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