Blockchain firm AltLayer has raised $7.2 million in seed funding round from Polychain Capital, Breyer Capital and Jump Crypto.
The funding round also saw participation from Balaji Srinivasan (Ex- CTO of Coinbase and general partner of Andreessen Horowitz).
Other investors including Sean Neville, co-founder, Circle; Ethereum co-founder and Parity Technologies CEO Gavin Wood ; Ryan Selkis, founder, Messari ; Kain Warwick and Jordan Momtazi, cofoundes, Synthetix.
The company plans to use the funds to increase its workforce.
The Singapore-based Altlayer was founded in 2021 by Yaoqi Jia, co-founder of blockchain company Zilliqa and former director of Parity Asia.
It helps blockchain app developers establish a disposable layer to cope with surges in traffic, such as during mining events.
The firm’s solution could be used by companies that are developing NFTs, blockchain-based games, and the metaverse project.
The company aims to launch a testnet in the third quarter of the year and raise Series A funding in the third or fourth quarter of 2022.
“Other scaling networks are general purpose in the sense that more than one decentralized application (dapp) can be launched on it,” said Jia. “AltLayer will provide application-specific chains.“
“AltLayer’s initial focus will also be the gaming, non-fungible token (NFT) and the metaverse sector. AltLayer can be seen as a system of individual optimistic rollups that derive security from an underlying Layer 1 (e.g., Ethereum) or Layer 2 networks (e.g., Arbitrum and Optimism), with each rollup tailored to a specific application,” he added.
AltLayer is a system of highly scalable application-dedicated execution layers that derive security from an underlying L1/L2. It is designed as a modular and pluggable framework for a multi-chain and multi-VM world. At its core, AltLayer is a system of several optimistic rollup-like execution layers called flash layers with a novel innovation that makes them disposable and therefore highly resource-optimized.
They believe that it is not viable for a single general-purpose chain (L1/L2) to host every dApp in Web3. On the one hand, in case of general-purpose chains, more used dApps compete for blockspace with a large number of unused dApps, while on the other hand, each dApp having its there chain becomes a wastage of resources. Therefore, there is a need to build a system that offers the best of both worlds as existing approaches and solutions present two opposite extremes.