Everscale, a blockchain that aims to solve scalability issues facing Web3 apps, today announced that it has raised $5 million in funding from Venom Ventures Fund to expand its engineering team and the development of projects using its ecosystem.
The Venom Ventures Fund is a venture fund formed by Iceberg Capital Ltd. and the Venom Foundation, a blockchain regulated by the Abu Dhabi Global Market. It also announced that it will enter into a strategic partnership with Everscale to join forces and build out its own ecosystem of blockchain projects.
Everscale developed a blockchain scaling solution based on the initial code of the Telegram Open Network designed by Nikolai Durov. Although the protocol follows the original whitepaper for TON it has some significant advances compared to the original. The primary innovation of Everscale is that it claims to provide one of the highest transactions per second rates available amongst blockchains that provide sharding.
The company produces a Layer 2 blockchain solution designed to assist with reducing congestion by allowing rapid scaling when a large number of transactions are dumped onto a blockchain using a system called “sharding.”
What sharding does is distribute data across multiple machines and networks by partitioning the data and processing across different networks so the processing can happen in parallel. As long as there’s a sufficient number of nodes in order to do the processing, this can greatly increase the speed, security and reliability of the network.
Everscale took this a step further with a concept called “infinite sharding,” which allows its network to add shards dynamically as load increases and then merge them back. That’s possible because the processes on the network communicate asynchronously and any shard can be split in two and then merged back again when processing is completed using distributed programming algorithms.
The Everscale and Venom teams will be working together to build out the core ecosystem and bring the adoption of this scaling solution closer to real business use cases. Currently, the teams intend to develop initiatives such as digital asset tokenization platforms, for central banking digital currencies and payment solutions using stablecoins.
“This is a milestone for both the Everscale and Venom networks. The technological capabilities of Everscale are immense, but they have been underappreciated by a wider audience,” Everscale Foundation board member Moon Young Lee said. “Now, Everscale will be able to operate as an experimental network where updates and complex technical solutions can be introduced before they are brought to Venom.”
Venom was designed to be a network of blockchains and it has no limit to the number of auxiliary networks that it can handle. The addition of Everscale to its stable of blockchain architectures will add to its economic capabilities, the company said.
“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop,” said Venom Ventures Fund Chairman Peter Knez. “In particular, we are talking about the Venom blockchain project and its ecosystem.”