Aptos, a new business founded by former Meta personnel participating in the Diem project, said today that it has raised $200 million for the purpose of developing a scalable blockchain infrastructure. Tiger Global, Katie Haun, Multicoin Capital, 3 Arrows Capital, FTX Ventures, and Coinbase Ventures are among the investors in the strategic funding round.
Aptos to Make Scalability Proposals
A group of former Meta employees who worked on Diem but left the firm in December are now focusing their efforts on establishing their own blockchain system with the goal of it being adopted by millions. Aptos, the firm created by the group, revealed it raised $200 million in its initial fundraising round, which was described as “strategic.” Tiger Global, Katie Haun, Multicoin Capital, 3 Arrows Capital, FTX Ventures, and Coinbase Ventures all participated in this fundraising round, elevating the company to unicorn status.
Aptos intends to use the funding to develop a more scalable blockchain on which users and businesses can rely without incurring expensive fees. While some existing blockchains claim to accomplish this, the Aptos team believes there is room for development in this area. Avery Ching, Aptos’ chief technology officer, told Techcrunch:
Current blockchains are just not as stable as established financial rails; we’ve witnessed instances of downtime and hours-long outages.
Aptos’s blockchain platform is mostly focused on web3 applications and financial ramps. Mo Shaik, Aptos’ CEO, stated:
Our objective is to collaborate with some of the world’s most recognised brands and technology businesses to truly create a web3 environment for the masses.
Scalability has been one of the primary issues that current generation blockchains are attempting to address in order to achieve widespread acceptance. Due to the high cost of fees, blockchains such as Ethereum have seen a user exodus, while the blockchain has relied on L2 (Layer 2) layers to handle extra traffic.
Other blockchains, such as Solana and Avalanche, have solved this issue through the implementation of various methods. However, these two chains have experienced service interruptions owing to a variety of factors.
Aptos’ solution aims to augment these systems with a second blockchain built on a “Byzantine Fault Tolerance” protocol that the firm claims has been tested without experiencing any downtime.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.