Pantera-Backed Offchain Labs Raises $3.7 Million in Seed Capital

New Jersey-based Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term company Offchain Labs announced that it has secured $3.7 million in a recently closed seed funding round.

The announcement detailed that the funding round was led by Pantera Capital. In addition, Offchain Labs also received funds from other investors including Compound VC, Raphael Ouzan of Blocknation, and Jake Seid, managing director of StoneBridge Ventures.

Commenting on the successful fundraising round, Steven Goldfeder, co-founder of the company, told Finance Magnates: “We’re thrilled to have raised this funding with lead investment by Pantera Capital, which has backed many of the top blockchain projects. The funding will be used to help build Arbitrum, as well as hire and onboard talented developers in the space. In the next phase of our development, we will look to onboard partners and continue to grow the platform.”

Filling the Gap Between Blockchain and Enterprise Solutions

Offchain Labs is developing a solution to introduce blockchain into an enterprise ecosystem. Dubbed as Arbitrum, it will enable both side chains and state channels for sophisticated off-chain execution, with support for optional smart contract privacy.

The company is leveraging ‘AnyTrust’ consensus mechanism to guarantee correct behavior for each transaction, even if only one of a contract’s validators is acting honestly.

“Through Arbitrum, we’ve built a Layer 2 solution that has the capability to make smart contracts more scalable, private, and compatible with existing programs on Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term,” Ed Felten, co-founder of Offchain Labs, explained.

“The platform is also able to support more sophisticated dApps, as well as faster computation rates and higher levels of privacy by taking transactions off-chain, which will be an advantage for enterprises looking to integrate blockchain technology into their businesses.”

Venture Capitals Betting on Blockchain

Last week, Finance Magnates reported that Pantera had raised $160 million for its third blockchain-focused venture fund. At the time, the fund managers had also revealed that, with the new fund, the company aims to invest in a total of 35 blockchain businesses.

“At Pantera, one of the biggest problems we see in the blockchain industry is that dApps face scalability challenges. The team behind Offchain Labs has developed a novel solution to this issue with Arbitrum, and we’re enthusiastic about this platform's potential to help dApps really take off. The unique properties of Arbitrum allow it to serve as a great Layer 2 scalability solution,” Joey Krug, co-chief investment officer at Pantera Capital, added.