Aptos, a new startup created by some of Meta’s former employees involved in the Diem project, has announced it has raised $200 million for its upcoming goal of creating a scalable blockchain system. Some well-known VC companies participated in the strategic financing round. They included Multicoin Capital and 3 Arrows Capital as well as Katie Haun, Tiger Global, Katie Haun (VC), Coinbase Ventures, Coinbase Ventures, and Multicoin Capital.
Aptos will propose scaling solutions
A group of Meta’s ex-employees that worked on Diem, and abandoned the company in December, are now dedicated to developing their own blockchain system aiming for it to be used by millions. Aptos, the startup the group founded, has announced the company raised $200 million in its first funding round, which was qualified as “strategic.” The company had the support of several VC companies in this funding round, including Tiger Global, Katie Haun, Multicoin Capital, 3 Arrows Capital, FTX Ventures, and Coinbase Ventures, putting it at unicorn status.
Aptos will use these funds to develop a more scalable, scalable blockchain which companies and users can depend on without needing to pay high fees. Aptos believes that there are still many blockchains on the market which claim to achieve this. Techcrunch spoke with Avery Ching, Aptos’ Chief Technology Officer.
Current blockchains are just not as reliable as existing financial rails, we’ve seen issues of downtime and outages that last for hours.
Aptos is focusing on web3 apps and financial ramps when designing the blockchain product. Aptos’ CEO Mo Shaik stated:
Our goal is to work with some of the world’s largest brands and tech companies to really build a web3 ecosystem for the masses.
Scalability Problem
Current generation blockchains face scaling problems. This is one reason why the technology has not been adopted widely. Due to high fees and exodus, blockchains such as Ethereum are experiencing a decline in users. The blockchain relies on Layer 2 layers (Layer 2) to handle excess traffic.
This problem has been addressed by other blockchains, such as Solana or Avalanche. These two blockchains have had their services down for different reasons.
Aptos’ proposal seeks to complement these systems with another blockchain, based in a “Byzantine Fault Tolerance” protocol, that according to the team has been tested without facing any downtime issues.
Are you happy with the Aptos investment of $200 million and its vision to build a more scaleable blockchain? Comment below.
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