Venture capital (VC) firm Paradigm is leading a funding round worth $225 million for a new layer 1 (L1) network aimed at competing with Ethereum (ETH). blockchain. Other notable participants include VC firms Electric Capital and Greenoaks.
According to a recent Fortune Magazine report, Monad Labs, the company behind the blockchain project, aims to compete with established players such as Solana (SOL) and Ethereum. layer 1 Blockchain protocol Sui (SUI).
Monad’s Reconstructed Ethereum Blockchain
every report, Monad's effort is to rebuild the Ethereum blockchain from scratch while preserving the ability to run smart contracts. The project aims to achieve faster transaction speeds, handle higher volumes, and offer lower costs compared to existing networks.
In particular, Monad ensures compatibility with Ethereum's programming infrastructure. ethereum virtual machine (EVM). This compatibility allows developers to port applications built for Ethereum, ensuring a smooth transition to the new blockchain.
Monad founder Keone Hon said in an exclusive interview with Fortune that the company has spent about two years developing its blockchain solution.
Hon said Monad Labs stands out because it fully supports the EVM bytecode standard. Developers use this standard to create decentralized applications (dApps) on platforms such as Ethereum, Polygon, Avalanche, Binance Smart Chain, and Optimism.
According to Avichal Garg, Managing Partner at Electric Capital, almost 90% of developers working on various crypto ecosystems focus solely on the EVM chain.
This statistic was highlighted in a recent report by Electric Capital. EVM compatibility. Although Monad has not had a complete programming language redesign like other blockchains, it benefits from the widespread use and familiarity of EVM.
An exchange that utilizes blockchain?
According to the report, Monad plans to launch its mainnet by the end of the year and a testnet in the coming months. The company currently employs approximately 30 people. native tokendetails of its launch in parallel with the mainnet have not been disclosed.
While emphasizing the pursuit of mainstream adoption, Keone Hon draws on his experience at Jump Trading, a data and research-driven trading firm, to say Monad's first use case could be for “high-frequency” trading activities. I pointed out that it is highly sexual.
Hong emphasized the need for high-performance blockchains that enable exchanges the size of Nasdaq and Chicago Mercantile Exchange (CME) to process millions to billions of transactions. daily trading.
Finally, Hong also highlighted the potential of blockchain with high transaction capacity and low fees to enable various applications such as gaming. He gave the example of blockchain-based games such as RuneScape that require frequent updates of player statistics, which requires low-cost and fast transactions on the blockchain.
At the time of writing, ETH was trading at $3,497, down nearly 5% over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
