OpenNode Bitcoin Payment Provider Secures $1.25 Million Investment from Billionaire Tim Draper
A Bitcoin payments processor called OpenNode ha recently received the sum of $1.25 million USD from the venture capitalist investor Tim Draper. The funds, which were raised during a seed round, will be used to expand the team of the company, especially the legal and the compliance teams.
The goal of OpenNode is to offer Bitcoin payments which can be free of any risk and instantaneous. The idea is to offer the services to businesses and generate a revenue of about 1% per transaction, profiting on the sheer number of transactions instead of by charging a lot.
OpenNode is powered by the Lightning network, a second layer of the Bitcoin network. Basically, all transactions are made on top of the Bitcoin original layer, which makes them considerably more cheap and faster than they would be if they were made on top of the original chain. The Lightning Network was a scaling solution that was launched in early 2018.
At the time, the LN was too full of bugs to be used as well as it was intended to, but now most of the bugs have been ironed out and the technology is considerably more effective. According to OpenNode, they followed the developments made by the LN and saw its capacity grow 15,000%, a huge mark.
The OpenNode’s spokesperson has also affirmed during the funding round that the company will continue to tackle emergent markets and use the LN to make them more profitable, as the technology can cut costs and promote a more creative and efficient model for people to pay using Bitcoin.
About Tim Draper
Tim Draper is a high-profile venture capitalist. He is the founding partner of Draper Associates and Draper Fisher Jurvetson Venture Capital, two major venture capital companies. He has been very bullish on the blockchain space and was responsible for backing several startups in the early times of the blockchain industry.
He is known for his big investments. Back in 2016, Draper led a $4.2 million series A funding round for Factom, a blockchain company based in Texas which had the goal of creating a range of products using the blockchain technology as a basis.
Recently, the venture capitalist was also responsible for investing the total of $760,000 USD in Bitwage, which was a Bitcoin startup. He also invested during the $8.8 million USD Series A funding round of Mirror, a smart contract platform, back in 2015.