Israeli blockchain chip startup, Chain Reaction, has raised $70 million in a funding round that brings the company’s total raised funds to $115 million. The company aims to accelerate complex technological solutions for blockchain and privacy technologies.
The Series C funding round was led by Morgan Creek Digital, with participation from Hanaco Ventures, Jerusalem Venture Partners, KCK Capital, Exor, Atreides Management, and Blue Run Ventures. Mark Yusko, an American investor and managing partner of Morgan Creek Digital, says the investment firm expects Chain Reaction’s blockchain products “will become the new industry standard in blockchain compute infrastructure, laying the foundation for all future sustainable blockchain technologies”.
Blockchain solutions: Chain Reaction is a semiconductor company focused on disruptive blockchain and privacy hardware. The Tel Aviv-based startup will use the new funds to expand the engineering and development teams and launch its first blockchain hardware chips and systems in the first quarter of 2023.
These blockchain solutions or products will include Application Specific Integrated Circuits (ASICs) and related systems, as well as solutions for cloud data infrastructure to accelerate privacy enhancing technologies (PETs). “Our technology will enable enterprises and government to modernize compute infrastructure by moving private data to the cloud,” the company said.
Alon Webman, co-founder and CEO of Chain Reaction, said the company will start mass production of its blockchain chip Electrum in the first quarter of this year. The chip is designed to carry out blockchain operations very fast.
What is Blockchain? Blockchains have gained increasing prominence in recent years. Blockchain is a digital technology that functions as a decentralized public ledger and allows secure and transparent record-keeping for transactions. It was initially developed for cryptocurrencies but has now found applications in various industries such as supply chain management, manufacturing industries, banking and healthcare.
Blockchain chips: Thhese are specialized hardware components designed for performing computations related to blockchain technology, such as validating transactions and securing the network. Blockchain chips are used for various purposes in blockchain technology, including cryptocurrency mining, smart contracts, secure storage, Internet of Things (IoT).
Funding amount: $70 million
Funding round: Series C
Lead investors: U.S.-based Morgan Creek Digital
