Nervos Network, a Chinese blockchain startup lately declared that has finished the first round of funding after raising a total of $28 million funds.
Today, the company also declared that the major investors who took part in the specific round of funding were Polychain, a hedge fund which focuses on tokens. Apart from this, major investors in this round also include Sequoia and some wallet based services like Bixin and imToken.
China’s blockchain industry is growing quickly as compared to last year and investors are flowing capital into blockchain and crypto companies. As per the report of China Venture, blockchain companies in China are increase past 6 years. From January to April 2018, investment raised by blockchain firms is RMB 6.3 billion, which is very huge as compared to last year.
How will funding be utilized?
As per the information provided by the firm, the new funding will be utilized in expanding the product and also building the team which develops it. More finances will be used in engineering with the main purpose to fasten the development process.
Co-founded by Jan Xie, who is a former Ethereum foundation developer, who authored Ruby implementation, the company desires to start establishing its own unique enterprise blockchain infrastructure.
Nervos will utilize the hybrid approach which combines a public blockchain with another layer which it refers to as “Application chain”. As per engineers, the system will be able to resolve common problems faced by blockchain technology like scalability and security instantly.
It is an approach started so that companies and organizations can come up with decentralized systems and applications which can be used on the top of secure public networks. However, they are to be used with the public secure network, the applications will run in the application chain layer.
Jan Xie, co-founder of the firm said, “While there are undeniable benefits for enterprises that utilize blockchain technology to innovate and improve existing systems, enterprise adoption has been held back by a host of challenges like scalability, security, and complexity.”
The new funding also counts the recent investment done by Sequoia China in the blockchain industry, following latest reports just after the Chinese firm’s involvement in Britain’s series B round funding.
Before few months, Polychain has Swiss-based blockchain startup. In the specific round of funding, Polychain supports to raise $61 million which would be used for establishing a protocol. The protocol will be further used to create a decentralized cloud computing platform.