Barack Obama’s Ex-Admin Official Secures $3.7 Million For Offchain Labs Blockchain SaaS Project
Former Obama Tech Officer Raises $3.7 Million To Develop Smart Contract Scalability
The startup that was co-founded by a former Obama administration official was able to raise $3.7 million in seed funding. The company is known as Offchain Labs and it was co-founded by Ed Felten, former deputy U.S. chief technology officer in the Obama White House. The information was released by TechCrunch a few hours ago.
Blockchain Startup Scores $3.7 Million Seed Round
There are two main issues that have affected blockchain adoption in the last years. These issues are related to scalability and privacy. Offchain wants to create the most scalable smart contract platform and shift part of the process off of the public blockchain in order to enhance privacy.
The funding round was led by Pantera Capital and supported by other firms such as Compound VC, Raphael Ouzan of Block nation, Jake Seid, and many others. In this way, the firm will be able to work towards improving scalability and privacy in the crypto space.
The company has deployed its own protocol called Arbitrum. Offchain developers want to also make smart contracts more scalable. The firm is also working on a platform that will allow smart contracts to scale in a way that now they are not able to do.
Ed Felten, who is also a professor at Princeton, explained that the platform combines both scalability and a different way to write data on smart contracts.
On the matter, he commented:
“We’re working to build a platform for smart contract development that provides what we think developers want, a combination of scalability so that you can scale more transactions per second, more users, and to contracts that have more code and still have more data in them.”
Furthermore, they will make smart contracts more private, protecting those that participate in these blockchain networks. Ed Felten commented that using Arbitrum they have built a Layer 2 solutions that makes smart contracts scalable and private, allowing them to be compatible with the existing programs on Ethereum (ETH).