EthStorage secures $7M in seed funding round.
EthStorage secures $7M in seed funding round.
The Rise of EthStorage: Revolutionizing Data Storage on the Blockchain
In a notable development within the blockchain industry, Layer 2 data storage project EthStorage has recently raised an impressive $7 million in seed funding. Led by crypto investment fund dao5, this funding round saw the participation of prominent investors such as Foresight Ventures, Galxe, Gate Ventures, SevenX Ventures, and Sky9 Capital, among others. The successful round has soared EthStorage’s valuation to a staggering $100 million.
The Decline in Crypto Funding
This achievement is particularly noteworthy given the current climate of reduced investment within the crypto ecosystem. Venture capital funding in the industry has experienced a sharp decline, with only $2.34 billion raised in Q2 2023 compared to the $12.14 billion raised in Q1 2022. This decline can be attributed, at least in part, to the stringent regulatory stance of the United States.
Lydia Chiu, Vice President of business development at Ava Labs, points out that the regulatory environment has pushed many crypto-related investments to adopt more traditional funding structures, such as equity financing, instead of token investments or simple agreement for future tokens (SAFT).
Interestingly, EthStorage’s funding round was structured as a SAFT, indicating that investors have maintained confidence in the project despite the challenging funding landscape. This speaks volumes about the potential of EthStorage as a promising venture in the blockchain industry.
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About EthStorage
Founded in 2022 by Qi Zhou, the creator of blockchain infrastructure startup QuarkChain, EthStorage is a Layer 2 storage solution built on the Ethereum network. It aims to address the limitations of existing storage options by significantly reducing the cost of storing large amounts of data on the Ethereum network while simultaneously expanding its storage capacity.
One of the key advantages of EthStorage is its integration with the Ethereum Virtual Machine (EVM). This integration enables seamless compatibility with important Ethereum tools and programming languages such as Solidity, Remix, Hardhat, and MetaMask. By leveraging these capabilities, EthStorage offers developers a familiar environment to build innovative and decentralized solutions.
To further extend its capabilities, the EthStorage team has introduced the Web3:// Access Protocol. With this protocol, users can browse fully decentralized dynamic websites on the EVM, emphasizing EthStorage’s commitment to revolutionizing the web experience on the blockchain.
Notably, EthStorage has already received two research grants from the Ethereum Foundation, further underscoring its recognition within the blockchain community. Additionally, the project emerged as the winner in the evaluation of the EDCON 2023 Super Demo, solidifying its position as a promising player in the blockchain industry.
Future Prospects
With its successful seed funding round, EthStorage is poised to expand its technical team, deepen its research and development efforts, and forge valuable partnerships within the blockchain ecosystem. The project’s vision of offering an innovative, cost-effective, and dynamic storage solution for the Ethereum network positions EthStorage as a catalyst for the future of data storage on the blockchain.
Conclusion
EthStorage’s recent funding success is not only a testament to the project’s strength and potential but also a reflection of investor confidence in the future of blockchain technology. By addressing the limitations of existing storage options and providing a more cost-effective solution, EthStorage is set to contribute significantly to the decentralization and efficiency of data storage within the Ethereum network.
We eagerly anticipate the further advancements and breakthroughs EthStorage will bring to the growing universe of blockchain technology, propelling the industry to new heights of innovation and accessibility.
