In its Series C fundraising round, blockchain firm Chain Reaction from Tel Aviv reported raising $70 million. The business wants to hire more engineers to assist in the creation of its cryptographic-focused chips and to speed up the manufacture of its blockchain-focused silicon.
A blockchain-based semiconductor business called Chain Reaction has revealed that it has secured $70 million as a portion of its Series C fundraising round. Hanaco Ventures, Jerusalem Venture Partners, KCK Capital, Exor, Atreides Management, and Blue Run Ventures participated in the round, which was led by Morgan Creek Digital, a division of Morgan Creek Capital, a venture capital firm co-founded by crypto influencer Anthony “Pomp” Pompliano.
Chain Reaction is Speedin up the Process
The business anticipates using the additional funding to expand its technical staff in order to speed up the creation of its blockchain silicon devices, which are anticipated to go on sale later this year. Alon Webman, co-founder and CEO of Chain Reaction, claims that the first batch of chips, dubbed “Electrum,” will begin to be mass-produced in Q1 2023.
Electrum will be a very effective ASIC chip made for mining bitcoin, a market that is controlled by businesses like Bitmain, according to sources from Reuters. To make the chips in bulk, the fabless firm hired TSMC, one of Taiwan’s largest foundries. Although not disclosing its valuation, Techcrunch believes the firm is worth roughly $500 million and has raised $115 million since its inception.
Addressing the Cryptographic Issues
Chain Reaction plans to utilize its initial offering of blockchain chips as a springboard to create more sophisticated silicon that will address cryptographic issues. The more sophisticated chips would be based on a kind of encryption known as homomorphic encryption, which purportedly might allow them to perform operations on encrypted data without first having to decode it.
This might have a variety of uses in the realm of cryptography by enabling more effective and private procedures without exposing plain information while interacting with data. Even with the current processing limitations, the business is confident in having a solution for this cryptographic problem.
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