Hemi Labs, a startup founded by Bitcoin developer Jeff Garzik and blockchain security expert Max Sanchez, has raised $15 million in a funding round led by Binance Labs, Breyer Capital, and Big Brain Holdings. The cash infusion is intended to advance the development of Hemi, a modular blockchain network that aims to seamlessly integrate Bitcoin and Ethereum in ways never before thought possible.
Unlike traditional solutions that treat Bitcoin and Ethereum as siloed ecosystems, Hemi envisions the two as interoperable components within a larger “super-network.” By leveraging the strengths of both networks — Bitcoin's security and Ethereum's programmability — Hemi aims to open up new possibilities for decentralized applications (dApps) and cross-chain asset transfers.
The people behind the funding
This significant investment comes from some of the most respected names in both the cryptocurrency and venture capital sectors: Breyer Capital, early backer of Facebook, Circle and Spotify, has partnered with Web3 powerhouse Big Brain Holdings, known for its investments in projects such as Solana, Arweave and The Graph.
Other notable participants in the round include Crypto.com, Web3 Ventures, HyperChain Capital, Alchemy, SALT Fund, Kelly Investments, Sunflower Capital, DNA Fund, Gate Ventures, Quantstamp, TRGC, BTC INC, Artichoke Capital, Cypher Capital, SNZ Holding, C6E, IBG Capital, Protein Capital, MON Ventures, SV5, Impossible Finance, Jihan Wu (Bitdeer), George Burke (Portal), Sonny Singh (Beluga), and others.
“The Hemi team has a clear and compelling vision for unlocking the programmability, portability and potential of Web3,” said Ted Breyer, founder of Breyer Capital. “With their strong track record, they're uniquely positioned to make it happen.”
Sam Kim of Big Brain Holdings echoed similar sentiments, calling Hemi a “super network that successfully blends the features of Bitcoin and Ethereum.”
Connecting two blockchain giants
Historically, attempts to bridge Bitcoin and Ethereum have been hampered by the fundamentally different design philosophies behind the two networks: Ethereum boasts a robust ecosystem of smart contracts, while Bitcoin is focused on secure, trustless transfer of value. This has created a disconnected situation where developers must choose between the security of Bitcoin and the flexibility of Ethereum.
Hemi aims to change this. Its modular design includes several key features that set it apart from traditional solutions. One of these is the Hemi Virtual Machine (hVM), which embeds a full Bitcoin node into an Ethereum virtual machine, making it easy for developers to build dApps that work on both chains. Hemi also introduces the Hemi Bitcoin Kit (hBK), which allows smart contracts to interact directly with Bitcoin state, enabling complex Bitcoin-native applications such as lending markets and staking.
Further enhancing the network's capabilities is Proof-of-Proof (PoP) consensus, a new mechanism for importing Bitcoin's security to other networks in a decentralized way, providing a level of finality and security that could set a new standard in cross-chain interoperability.
New frontiers for blockchain
The ambition behind Hemi is clear: to combine the best of Bitcoin and Ethereum and expand the utility of both networks. Jeff Garzik, co-founder of Hemi Labs, highlighted the broad potential of this integration: “We're not just bridging two networks. We're building the foundation for new blockchain applications that weren't possible before.”
The project's testnet is already up and running, with the mainnet launch scheduled for the second half of 2024. Early signs suggest strong support from not only investors but the broader crypto community, including developers eager to explore the potential of a fully integrated Bitcoin and Ethereum ecosystem.
“Hemi's approach aligns with our commitment to backing projects focused on building practical, decentralized solutions with long-term potential,” said Alex Odagiu, investment director at Binance Labs.
Impact on the industry
If Hemi can realize its vision, it could address a long-standing challenge in the blockchain field: how to achieve the programmability and functionality of Ethereum while leveraging Bitcoin's unparalleled security.
By offering a solution that natively supports both ecosystems, Hemi can open the door to a new class of dApps, including trustless lending platforms, MEV marketplaces, and other financial services that require tight integration with Bitcoin.
As the blockchain field continues to evolve, a successful launch of Hemi could herald a new era of cross-chain interoperability in which the strengths of different networks are not only maintained but enhanced.
Mainnet launch: Q4 2024
Funding: $15 million
Major investors: Binance Labs, Breyer Capital, Big Brain Holdings
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