Founders of the #Celestia #blockchain network, Celestia Labs, have raised $55 million in a combined Series A and B investment sponsored by venture capital firms Polychain Capital and Bain Capital Crypto.
According to a person familiar with the situation, the money raising elevates Celestia to unicorn status with a $1 billion valuation and was four times oversubscribed.
Coinbase Ventures, Jump Crypto, FTX Ventures, Placeholder, Galaxy, Delphi Digital, and several additional venture capital and angel investors were also participants in the round. Previously, in March of last year, Celestia secured $1.5 million in a seed round at an unknown valuation. With a focus on “modular” blockchain networks, Celestia Labs, a 2019 startup, is redefining blockchain architecture. The company claims that this approach makes it simpler to build and expand blockchains.
The only goal of the layer 1 blockchain Celestia is to arrange transactions and make the data for transactions accessible. Smart contracts and computations are not handled or carried out on the blockchain. Instead, as part of its flexible, modular design, Celestia’s concept outsources these tasks to rollups or other blockchains.
Monolithic blockchains like Ethereum or Solana, which have had trouble with scalability and outages, have so far dominated the crypto world.
“For the past decade, crypto has been bottlenecked by an endless loop of new monolithic [layer 1] smart contract platforms, each racing to the bottom to sacrifice decentralization and security to provide cheaper transaction fees,” said Celestia Labs co-founder Mustafa Al-Bassam. “Web3 cannot scale within the constraints of a monolithic framework.”
According to Celestia, a modular blockchain avoids the trilemma that normally afflicts monolithic blockchains by allowing the main operations of blockchains – consensus, settlement, data availability, and execution – to be detached into different layers.
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