Speedy Solana Raises $20 Million in Series A

July 31, 2019 / by Crypto.IQ

To make sure that a blockchain that is supposed to operate on the whole of the world web, $20 million Series A have been raised by Solana, led by Multicoin Capital. With this, Solana has pledged to offer a Layer 1 platform that runs on Layer 2 speed. 

On Tuesday, Solana made known that Multicoin Capital, based in Texas and Austin, was victorious in this round. Other firms like Blocktower Capital, Distributed Global, Passport Capital, Slow Ventures, Rockaway Ventures, Foundation Capital, NEO Global Capital, Blockchange VC also participated. In return for the investments in Solana, these firms were offered SOL tokens instead of equity. 

“Solana is the only chain that scales at Layer 1 while preserving architectural and political decentralization, ensuring that smart contracts retain the key properties of being composable and modular,” said Kyle Samani, Cofounder and Managing Partner of Multicoin Capital. “(Solana) is the closest thing to the ‘world computer’ blockchain developers conceptualized in the early days of crypto. While many developers have proposed sharding solutions for scaling existing layer 1 solutions, all of those solutions introduce a tremendous amount of complexity and create new user experience problems. Solana has done it differently — and is one of the most compelling layer 1 platforms we’ve evaluated to date. We’re very proud to lead this round, and we encourage developers everywhere to take a serious look at Solana.”

Telecom hardware legend Qualcomm is the brain behind Solana’s founding team. In 2018, Solana put together seed money after it published a white paper in the later part of 2017. This company has constructed a personal testnet. 

According to Solana, the funding for Series A will be spent on project management and engineering. The inauguration of a mainnet will happen in some months to come. 

Solana is making public the inauguration of its general devnet. Of late, Solana made public an incented testnet affair. This one was a lot like the “Game of Stakes” affair that was organized by Cosmos. In August, “Tour de SOL” pioneered by Solana will begin.  

“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 and project manager Anatoly Yakovenko said. “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.”

According to Solana, its solution with multiple threads can bear, on a global network having 200 nodes, up to 50,000 transactions per second (TPS). The most speedy blockchains, Ripple and Tron, say that they can support 1,500 TPS and 2,000 TPS respectively. Visa can handle up to 65,000 TPS as it published in its most recent annual report, so there is significant ground to cover for crypto to catch up.