Multicoin Leads $20 Million Round for Speed-Focused Solana Blockchain
Claiming it can handle many more transactions per second than existing blockchains, Solana has raised capital to ramp up development.
Promising Layer 2 speeds on a Layer 1 platform, Solana has raised a $20 million Series A to build a blockchain meant to operate on the mass scale of the world wide web.
The company announced Tuesday that Multicoin Capital, the Austin, Texas-based investment firm, had led the round. Distributed Global, Blocktower Capital, Foundation Capital, Blockchange VC, Slow Ventures, NEO Global Capital, Passport Capital and Rockaway Ventures also participated. The firms received SOL tokens in exchange for their investment, not equity in Solana, Inc., according to a spokesman.
In a statement to CoinDesk, Multicoin co-founder Kyle Samani said:
The Solana founding team comes primarily from telecom hardware giant Qualcomm. After publishing a white paper in late 2017, the company raised a seed round in 2018 and has built a private testnet. Solana says it will push its Series A funding toward engineering and project management as it nears a mainnet launch in the coming months.
Along with the funding round, the company is also announcing the launch of its public devnet. Solana recently announced an incentivized testnet event similar to Cosmos’ “Game of Stakes.” Solana's “Tour de SOL” begins in August.
“We’ve seen the challenges that developers are facing with Layer 2 and sharding solutions, and we’re excited to give them an incredibly simple alternative that doesn’t sacrifice performance,” Solana co-founder and CEO Anatoly Yakovenko said in a statement. “Other than Solana, all blockchains are single-threaded processors. That is, they can only make one state update at a time. This is the single greatest challenge holding back the industry today.”
Solana claims its multi-threaded solution can support 50,000 transactions per second (TPS) on a Tron and Ripple, say they can handle 2,000 TPS and 1,500 TPS, respectively. The network of payments giant Visa, meanwhile, can process 65,000 TPS, according to the company’s latest annual report.. For comparison, the fastest of the major blockchains,
Kyle Samani image via CoinDesk archives
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.