Subsquid, a query node framework for substrate-based blockchains, announced Thursday that it has completed a $ 3.8 million seed round led by Hypersphere Ventures.

The company expects to use this seed funding to develop its first blockchain indexing solution. The new data query technology will, as announced, tap into the network of indexes and allow anyone to join and contribute data to subsquid data users.

Subsquid technical founder Dmitry Zhelezov commented on the successful closure of the seeds:

“We look forward to introducing even more features in the coming weeks so that blockchain developers can leverage next-generation technology from Subsquid and bring DApps to a new level of speed and functionality.”

The seed round was led by Hypersphere Ventures, with notable participants such as Zeeprime, Illusionist Group, Zeitgeist, Chainflip, Astar Network, Dia Data, DFG, 0x Ventures, Khoa Group and others.

Subsquid plans to introduce a new blockchain indexing technique in February 2022. In order to make this more efficient and parallel for users of blockchain data, the network will separate the indexing from the data retrieval.

The company believes that this decentralized and distributed indexing process will make blockchain data faster and more efficient for users. Jack Platts, co-founder of Hypersphere Ventures, commented on the new development and said the company is excited to support Subsquid as one of the key infrastructure elements for the Parachain ecosystem.

Indexing is an extremely important process for blockchains. All data, transactions and smart contracts are indexed to make them easily accessible. Current blockchain indexing technology mainly uses a centralized model which often suffers from some issues like security, privacy and scalability.