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Status Has Invested $5 Million in Matrix to Bring Decentralized Communications to the Masses

The first of many steps Status intends to take in 2018

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The Investment

In line with their commitment to decentralization and open source communities, Status, the mobile Ethereum OS, today announced that it has made a $5 million strategic investment in Riot.im and Matrix.org. It is the first of many steps the company intends to take in 2018. The investment actually goes into New Vector, the company which currently employs most of the Matrix.org core team.  “This means that we now have the financial backing to let us focus entirely on improving the Matrix ecosystem and getting the protocol out of beta… and beyond!!,” said Matrix co-founder Matthew Hodgson via his post.

The Intent

Status is one of the leading projects in the Ethereum ecosystem: building a beautiful usability-focused browser for decentralized apps (DApps) which run on the Ethereum Virtual Machine – as well as providing cryptocurrency payments and chat functionality (via the Whisper protocol). It effectively lets users access Ethereum as a usable, meaningful operating system – a bit like how Riot attempts to be a flagship ‘browser’ for the Matrix ecosystem. According to Carl Bennetts, a co-founder of Status, “We are building a tool that’s aimed at bringing decentralized communications to the masses, and Matrix protocol is working on something somewhat similar.”

Meanwhile, Hodgson and his team at Matrix have always been laser-focused on communication; whether that is instant messaging, group chat, voice or video calling, or sharing data over IoT devices, or even within VR. And, Riot.im is the decentralized collaboration tool built on the Matrix protocol which supports open, secure and inter-operable communication for work and home. So, the funding is key to Riot.im as it would give the company the freedom to expand its team, and continue improving Riot.im and Matrix in an open source environment, as made known by Amandine Le Pape, Head of Operations and products for Riot.im.

The Synergies

With the investment, Status intends to:

  • “Utilize the Status Network token within Riot.im by enabling crypto assets
  • Create a bridge between Matrix and Whisper (Ethereum’s own real-time communication protocol)
  • Integrate Status DApps as widgets within Riot.im
  • Support Status in encryption algorithms and protocol development,” as disclosed in the company’s blog.

For Status, thoughtful, well-planned open source projects are the lifeblood of our industry and essential to the health of our thriving community. So, contributions that help accelerate the development of strategic protocols such as Matrix, fall in line with the company’s vision.

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