MegaLabs secures $20 million seed funding for ‘real-time’ Ethereum scaling protocol

MegaLabs secures $20 million seed funding for "real-time" Ethereum scaling protocol

MegaLabs secures $20 million seed funding for ‘real-time’ Ethereum scaling protocol As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry. He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.

MegaLabs, the primary development team behind a novel Ethereum scaling protocol designed for unprecedented speed, has raised $20 million in seed funding.

CoinDesk reported that the recent round, led by Dragonfly Capital, attracted diverse investors, including Figment Capital, Folius Ventures, Robot Ventures, Big Brain Holding, and Tangent. The investment also garnered support from notable figures such as Ethereum co-founder Vitalik Buterin, Consensys CEO Joseph Lubin, EigenLayer creator Sreeram Kannan, and Hasu from Flashbots.

The newly acquired capital will be directed towards the development of the MegaETH protocol, with plans to launch a testnet in the coming months.

MegaETH distinguishes itself as a “real-time blockchain,” emphasising transaction processing speed. The protocol aims to achieve an impressive throughput of 100,000 transactions per second with millisecond-level responsiveness.

Yilong Li, co-founder of MegaLabs, explained the concept in an interview with CoinDesk: “We define a real-time blockchain to be a blockchain that can process transactions as soon as they arrive. Then you produce the resulting outputs at a very high frequency.”

The protocol’s scaling capabilities derive from two key innovations:

1. A heterogeneous blockchain architecture that enhances performance by allowing network nodes with varying hardware configurations to specialise in specific tasks.

2. A hyper-optimised EVM (Ethereum Virtual Machine) execution environment that maximises throughput, minimises latency, and pushes resource efficiency to hardware limits.

The development of MegaETH was partially inspired by Vitalik Buterin’s 2021 blog post, “Endgame,” which addressed Ethereum scaling challenges. He expressed his support for the project, stating, “Creating hyper-scalable EVM implementations is a key prerequisite for truly scaling Ethereum. I am excited to see brilliant developers taking on this challenge.”

This significant funding round and the ambitious goals of MegaETH highlight the ongoing efforts within the Ethereum ecosystem to address scalability issues and push the boundaries of blockchain technology performance.

Overview of the broader blockchain funding landscape

The MegaLabs funding round was part of a significant week for venture capital in the blockchain space. According to data from Crypto Fundraiser, 23 startups secured over $154 million in funding, surpassing the previous week’s total by almost $91 million. The number of funded projects increased by 10 from the previous week.

Highlights of notable funding rounds

  1. Conduit: Leading the pack, Conduit raised $37 million in a Series A round co-led by Paradigm and Haun Ventures. Other participants included Robot Ventures, Credibly Neutral, Coinbase Ventures, Bankless Ventures, and several angel investors. The funds will be used to develop customisable blockchain-based products like rollups, enhancing the accessibility of on-chain computing.
  2. Ora: This blockchain project, focusing on integrating AI into decentralised applications, secured $20 million from investors, including Polychain, HF0, and Hashkey Capital. Ora aims to develop technology for tokenising AI models and enhance decentralised AI within the Ethereum ecosystem. Their innovative optimistic machine learning (opML) technology underpins their flagship product, opp/ai, which combines optimistic systems and zero-knowledge technology for secure and efficient on-chain machine learning with privacy-preserving features.

These developments, alongside MegaLabs’ funding, underscore the continued investor interest in blockchain infrastructure and scaling solutions. They also highlight the growing intersection of blockchain technology with other cutting-edge fields like artificial intelligence.

(Photo by Kanchanara)

See also: US Treasury finalises crypto tax reporting rule, legal challenges for Binance continue

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