Alibaba Brings in New Blockchain Startup Backed by Draper Dragon
Massively huge Alibaba Group is working together with Draper Dragon, who investing $20 million of their own money into a new blockchain startup. Ultrain, the new company was started in 2017, focusing on blockchain related technology to improve everything related, is focused on improving technologies to scale the blockchain for use with the groups growing business model.
There have already been several launches this year to test certain aspects of the system. For one, the company is making claims to be able to perform 3,000 transactions a second on the gigantic network of 1,000 nodes. Typically, this would be unbelievable, but with the backing of the two already established entities, people are impressed at what Ultrain has been able to do.
Announcements where made earlier last week that there have already been several investors who’ve participated in funding. Of these, Draper Dragon has made the largest contribution of $20 million USD. Other investors include: FBG Capital, Arrington XRP Capital, DanHua VC and crypto wallet company Bixin. Even the well-known exchange OKCoin has made investments with the company. There are also other more traditional funding platforms making contributions as well, such as Ceyuan Capital.
Members of the team at Ultrain include former employees from Alibaba Group’s security and blockchain sectors. Of them, Ray Guo, former manager of security and data at the group is now working on the project along with William Li of Alibaba’s blockchain technical unit. Ultrain has been successful utilizing Ali’s own cloud-based system with Ant Financial integrated into it also.
Alibaba’s supported blockchain, is designed to empower people who are using its resources. The 3,000 TPS is said to be enough for now but will likely increase the size of the blockchain does. Integrated with Alipay, which has more than 150 million active users and as many as 5,000 TPS – the system will have to increase at some point to meet the needs of roughly one million of those users. Alibaba group is doing things their own way, looking to create an entire living ecosystem to house the more than 60 patents they’ve placed so far on blockchain technology. Controlling the environment is essential to operating the system correctly. There are other possibilities that could take place as well, like improving the blockchain technology to meet the needs of the Alibaba Group.
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