Offchain Labs, the developer of Ethereum scaling solution Arbitrum, has announced raising $120 million in a Series B funding round. It was led by Lightspeed Venture Partners and also saw the participation of Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, among others.
Of late, the rollup network called Arbitrum One has garnered significant traction and has managed to build up notable support since it beta-launched to developers in May this year. Since then, approximately 400 teams have reportedly signed up for access.
Ethereum’s perennial inefficiencies and the rise of other scaling solutions
Besides, Ethereum’s scalability problems and network congestion have been topics of extensive debate and discussion.
Offchain Labs built its platform in response to an increasing need for scaling Ethereum without compromising on the security of Ethereum as the base layer. Having EVM compatibility means that projects can deploy without changing the code in their contracts.
“We’ve had the pleasure of working closely with Steven, Ed and Harry,” said Amy Wu, Partner at Lightspeed. “Their dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product. That’s why over 400 projects have chosen to launch with Arbitrum, including Reddit.”
Broad Ecosystem of SupportArbitrum is launching to end-users as scaling platforms surge in popularity, with key projects in the Ethereum space and the protocol seeing tremendous traction in recent months with many of Arbitrum’s launch partners.
CEO Steven Goldfeder and CTO Harry Kalodner detailed a deeper underlying vision in a 2018 research paper before licensing the tech from Princeton and building out the company. Felten previously served as the deputy U.S. chief technology officer in the Obama White House, and — alongside Goldfeder — authored a top textbook on cryptocurrencies.
After a lengthy period under wraps and a few months of limited access, the startup is ready to publicly launch the Arbitrum One mainnet, they tell TechCrunch.
This team’s scaling solution has few direct competitors — a16z-backed Optimism is its most notable rival — but Arbitrum’s biggest advantage is likely the smooth compatibility it boasts with decentralized applications designed to run on Ethereum, compared with competitors that may require more heavy-lifting on the developer’s part to be fully compatible with their rollup solution.
Offchain labs ethereum arbitrum 120mm
Founding Team Offchain Labs was co-founded by Ed Felten, former deputy U.S. chief technology officer in the Obama White House and longtime Professor at Princeton University. Ed started working on Arbitrum while at Princeton University where he met his co-founders, Steven Goldfeder and Harry Kalodner. The three detailed the Arbitrum technology in a research paper while at Princeton that was published in 2018 once Ed returned from the White House.
Offchain was officially born while the three were at Princeton with a mission to scale Ethereum and bring it to the masses.
Offchain labs ethereum arbitrum 120mah
Steven holds a PhD from Princeton University and Ed and Steven are two of the authors of the leading textbook on cryptocurrencies, Bitcoin and Cryptocurrency Technologies.
“We are excited to partner with our investors who understand the importance of scaling Ethereum and bringing the Ethereum ecosystem to the masses,” said Steven Goldfeder, co-founder and CEO, Offchain Labs. “The tremendous support we’ve seen from developers across the globe validates our mission to be the first to marry the world of FinTech and Defi.”
Offchain Labs will use the new funding to scale the team, further develop the Arbitrum One ecosystem, build out new scaling solutions in its pipeline and invest in R&D.
Offchain labs ethereum arbitrum 120mh
That’s why developers are looking to so-called Layer 2 rollup scaling solutions, which sit on top of the Ethereum network and handle transactions separately in a cheaper, faster way, while still recording the transactions to the Ethereum blockchain, albeit in batches.
The Layer 2 landscape is early, but crucial to the continued scalability of Ethereum. As a result, there’s been quite a bit of passionate chatter among blockchain developers regarding the early players in the space.Offchain Labs has been developing one particularly hyped rollup network called Arbitrum One, which has built up notable support and momentum since it beta-launched to developers in May, with about 350 teams signing up for access, the company says.
They’ve attracted some high-profile partnerships, including Uniswap and Chainlink, which have promised early support for the solution.
Offchain Labs Inc., a provider of solutions to scale up the Ethereum blockchain, today announced that it has raised $120 million in funding to launch its Arbitrum One mainnet to the public.
The Series B funding round was led by Lightspeed Venture Partners and joined by Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital and others.
The Ethereum blockchainis a decentralized public ledger for verifying and recording transactions, enabling users to create, publish, use and make money from applications on the platform and use its Ether cryptocurrency as payment. These decentralized applications on the network are known as “dApps.”
But Ethereum has long had issues with scaling up and with congestion as its popularity has increased.
As the broader crypto world enjoys a late summer surge in enthusiasm, more and more blockchain developers who have taken the plunge are bumping into the blaring scaling issues faced by decentralized apps on the Ethereum blockchain. The network has seen its popularity explode in the past year, but its transaction volume has stayed frustratingly stable as the network continues to operate near its limits, leading to slower transaction speeds and hefty fees on the crowded chain.
Ethereum’s core developers have been planning significant upgrades to the blockchain to rectify these issues, but even in the crypto world’s early stages, transitioning the network is a daunting, lengthy task.
Offchain Labs raised $120 million led by Lightspeed Venture Partners in its Series B financing Tuesday, aiming to expand Ethereum contracts to meet the growing demand for Ethereum transactions.
Other investors include Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, Mark Cuban, etc., participating in this financing.
Offchain Labs stated that it would use the funds raised to further develop the “Optimistic Rollup” extension solution Arbitrum for layer 2 of Ethereum.
As part of the financing agreement, Lightspeed’s co-founder Ravi Mhatre also joined the company’s board of directors.
Another Partner at Lightspeed, Amy Wu, responded to this investment:
“Their dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product.
“We’ve committed to a fair launch, and today we’re delivering on that commitment by opening up to users for all projects simultaneously. But even though we’re removing the whitelist today, this doesn’t mean that every project will choose to go live immediately.
The Arbitrum One Portal is the best place to track the progress of current and upcoming launches on Arbitrum.”
Arbitrum happens to be the first scaling solution by Offchain Labs, and the initiative is working on other solutions to scale Ethereum. Even as the release is a notable milestone, Arbitrum One is still in beta.
Offchain Labs, the team behind the highly anticipated Ethereum layer two platform, Arbitrum One, has completed the public mainnet launch of its optimistic rollups solution.
Announced on Aug. 31, Offchain Labs also revealed that it has secured $120 million in a Series B fundraising round. The round was led by Lightspeed Venture Partners and also saw participation from heavyweight crypto investors Polychain Capital, Pantera Capital, Alameda Research and Mark Cuban.
Lightspeed partner Ravi Mhatre also joined Offchain Labs’ board as part of the round. Amy Wu, also a partner at Lightspeed, stated:
“[Offchain Labs’] dedication to the Ethereum developer community is second to none and they have the best, easiest-to-use scalability product.