Obol Labs Raises $12.5M In New Funding Round To Enhance Security Stake Blockchains Validation
Key Points:
- In order to strengthen the security of proof-of-stake blockchains, Obol Labs, a startup, raised $12.5 million in Series A funding.
- With their Distributed Validator Technology, which enables many workstations to run an Ethereum proof-of-stake validator simultaneously, Obol Labs aims to increase the security of proof-of-stake blockchains.
In the middle of the cryptocurrency bear market, company Obol Labs has raised $12.5 million in Series A funding to develop distributed validator technology (DVT), which it says will address some of the most pressing issues for Ethereum’s new validator class.
BlockTower, Nascent, Placeholder, Spartan, and IEX also participated in the round, which was co-led by investment companies Pantera Capital and Archetype, the company stated in a statement. Coinbase Ventures and Ethereal Ventures, previous backers of Obol, also participated in the round.
Single points of failure in staking infrastructure are being directly addressed by Obol Labs, the primary provider of DVT. A basic piece of technology called DVT makes it possible to execute the Ethereum Proof-of-Stake validator on many computers at once.
The essential innovation is the ability to divide up a single validator private key, enabling a group of users to share an Ethereum validator’s validation privileges. The company’s funding in the midst of the crypto winter, when venture capital funding has dropped by over 60%, confirms the significance of DVT for the upcoming Web3 scalability.
A validator must stake 32 ETH in order to become one, and they must also deal with technological intricacy. Validators are rewarded for administering the network of nodes that keeps Ethereum up and running, and validators can pay penalties if they screw up or go offline.
Running a validator as a cluster of nodes increases staking resilience since validators are less likely to go down, validator keys are less likely to be stolen, and there is less of a chance that the network as a whole may see a correlation if validator clients have software problems. In the end, DVT enables network validators of any size to boost security, resilience, and stake distribution.
Collin Myers, Obol Labs CEO and Co-Founder said:
“Turbulent events of 2022, including the FTX collapse, make decentralization a key priority on all levels of the Web3 stack. To make networks more secure, staking must be decentralized by design. Obol’s DVT brings decentralization and resiliency to the ground floor of staking products. Our current focus is Ethereum, but in the future, we’ll have implementations with Cosmos and Ethereum L2 networks.”
According to Obol, it already collaborates with Lido and another comparable service, StakeWise, to use DVT to more securely and effectively disperse user assets among operators. Due to worries that if any of these companies obtain sufficient control over the network, they might possibly interfere with how it processes transactions, Coinbase, Binance, and Lido have all recently come under examination.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
News
Obol Labs Raises $12.5M In New Funding Round To Enhance Security Stake Blockchains Validation
Key Points:
- In order to strengthen the security of proof-of-stake blockchains, Obol Labs, a startup, raised $12.5 million in Series A funding.
- With their Distributed Validator Technology, which enables many workstations to run an Ethereum proof-of-stake validator simultaneously, Obol Labs aims to increase the security of proof-of-stake blockchains.
In the middle of the cryptocurrency bear market, company Obol Labs has raised $12.5 million in Series A funding to develop distributed validator technology (DVT), which it says will address some of the most pressing issues for Ethereum’s new validator class.
BlockTower, Nascent, Placeholder, Spartan, and IEX also participated in the round, which was co-led by investment companies Pantera Capital and Archetype, the company stated in a statement. Coinbase Ventures and Ethereal Ventures, previous backers of Obol, also participated in the round.
Single points of failure in staking infrastructure are being directly addressed by Obol Labs, the primary provider of DVT. A basic piece of technology called DVT makes it possible to execute the Ethereum Proof-of-Stake validator on many computers at once.
The essential innovation is the ability to divide up a single validator private key, enabling a group of users to share an Ethereum validator’s validation privileges. The company’s funding in the midst of the crypto winter, when venture capital funding has dropped by over 60%, confirms the significance of DVT for the upcoming Web3 scalability.
A validator must stake 32 ETH in order to become one, and they must also deal with technological intricacy. Validators are rewarded for administering the network of nodes that keeps Ethereum up and running, and validators can pay penalties if they screw up or go offline.
Running a validator as a cluster of nodes increases staking resilience since validators are less likely to go down, validator keys are less likely to be stolen, and there is less of a chance that the network as a whole may see a correlation if validator clients have software problems. In the end, DVT enables network validators of any size to boost security, resilience, and stake distribution.
Collin Myers, Obol Labs CEO and Co-Founder said:
“Turbulent events of 2022, including the FTX collapse, make decentralization a key priority on all levels of the Web3 stack. To make networks more secure, staking must be decentralized by design. Obol’s DVT brings decentralization and resiliency to the ground floor of staking products. Our current focus is Ethereum, but in the future, we’ll have implementations with Cosmos and Ethereum L2 networks.”
According to Obol, it already collaborates with Lido and another comparable service, StakeWise, to use DVT to more securely and effectively disperse user assets among operators. Due to worries that if any of these companies obtain sufficient control over the network, they might possibly interfere with how it processes transactions, Coinbase, Binance, and Lido have all recently come under examination.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Other Posts
Related Posts
Latest
Solana DEX Trading Volume Hits $5B Daily for Three Straight Days
Phantom iOS Users Lost Recovery Phrase After Updating to New Version
Japanese Crypto Exchange Coincheck Gets Approval to Launch in the US
Press Release
Get Ready for a New Level of Excitement If You Missed Ethereum ICO: Qubetics Could Redefine Success
Shiba Inu Price Clears Path To New ATH Of $2 As WallitIQ (WLTQ) Takes The Lead With A 23,000% Surge
