Nervos Network raises $28 million to make enterprise blockchain networks | Tech Biz
Nervos Network has raised $28 million to build a next-generation blockchain network for the enterprise.
The company raised the money from Polychain Capital, Sequoia China, Wanxiang Blockchain, FBG Capital, Blockchain Capital, Dekrypt Capital, Multicoin Capital, 1confirmation, Matrix Partners China, 1kx, and more.
Nervos will use the money to grow its product and engineering teams, accelerate development of its enterprise blockchain solutions, and do strategic partnerships.
Founded by a team of blockchain and crypto veterans from Ethereum, imToken and Yunbi, Nervos is a network of interoperable protocols built on top of an open network and designed for enterprise applications.
By providing a hybrid solution that combines the advantages of a public blockchain and an application chain, Nervos Network allows enterprises to build and deploy decentralized applications (dApps) without committing their entire tech stack to the blockchain.
“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,” said Jan Xie, chief architect of Nervos, in a statement. “The new funding will allow us to move full speed ahead as we build an infrastructure that will allow enterprises to reduce the costs of developing and deploying blockchain applications.”
The company said that existing blockchain infrastructure is inadequate for enterprise use because it cannot simultaneously meet both security and performance requirements of enterprises.
Public chains compromise scalability and performance for the sake of security, while permissionless chains forgo security in favor of transaction speed and throughput.
Nervos said it solves this problem by utilizing a layered architectural design, which consists of a secure public chain (Layer 1) and a high-performance application chain (Layer 2). By leveraging both layers, Nervos will provide a complete set of real-world blockchain solutions for enterprises.
“We are excited by some of the activity happening in the Chinese crypto ecosystem and have been impressed by the Nervos team and their approach to building a high performance blockchain,” said Olaf Carlson-Wee, CEO of Polychain Capital, in a statement. “We think Nervos could become one of the leading major ecosystems and may spawn an array of opportunities. We are excited to partner closely with this talented team and support their outlier growth.”
Steven Ji, partner at Sequoia China, added, “There’s no shortage of blockchain projects, but Nervos stands out because it has a clear mission and a well-defined plan to bring tangible and immediate benefits to the most promising segment of blockchain users.”