Nervos Network, a blockchain-based startup, has recently announced that it has completed its first round of funding after having raised a total of $28 million.
On Wednesday, the company revealed the major investors who took part in this particular round of funding, included Polychain, a hedge fund that focuses on tokens. Another major investor in this round was Sequoia, a venture capital firm based in China.
A number of blockchain startups located in China also took part in this funding round. They included imToken and Bixin.
How Will the Finances Be Used?
Information released by the company clarified that the new investment would be put to use in expanding the product, as well as the team involved in developing it. The money will be pumped into engineering, with the primary goal of speeding up the development process.
The company hopes to be able to start developing its own unique enterprise blockchain infrastructure. Nervos Network was co-founded by Jan Xie, a former developer who specialized on the Ethereum blockchain.
He also authored the widely popular Ruby Implementation. His startup hopes to be able to come up with its own public blockchain network that will operate using the name “Nervos Network”.
Nervos will use a hybrid approach to combine what it calls the application chain, with a layer of the existing public blockchain. According to its engineers, its system will seek to resolve issues that have become common with blockchain technology such as security and scalability. The two are to be resolved simultaneously.
It is an approach that is meant to make it possible for companies and organizations to come up with decentralized systems and applications that can be used on top of secure networks. But although they are to be used with public secure networks, the applications will be run in the application chain layer.
This means that it will no longer be necessary for companies to commit all their stack to blockchain technology. This latest investment goes to show that Sequioa China is taking a keen interest in startups dealing with blockchain technology.
It is not their first investment in the industry, and it comes hot on the heels of reports indicating that the China-based firm has also invested in Bitmain’s Series B round funding.
Polychain has also not been left behind as it also recently invested in a Swiss-based blockchain startup. In that particular round of funding, it helped the firm to raise $61 million that will be used in developing its protocol. The protocol will be used to assist in developing a decentralized cloud computing platform.
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How do you think Sequioa’s and Polychain’s investment in Nervos Network will pan out? Let us know what you think in the comments section.