Highlights:

  • Monad offers a blockchain solution referred to as “layer-1,” a top-level network that facilitates the development and deployment of decentralized applications, or dapps.
  • According to Monad, it’s creating a new Ethereum virtual machine from scratch rather than just replicating Ethereum’s code.

Monad Labs Inc. raises USD 225 million in the fresh funding initiated by Paradigm. The developer of the Ethereum-compatible blockchain, Monad, raised the capital to catalyze the development of a scalable network that holds the capacity to deliver high transaction speeds.

Electric Capital, GreenOaks, Castle Island Ventures, Animoca Ventures, Lightspeed Faction, Coinbase Ventures, Wintermute Ventures, and many more investors participated in the round. One of the biggest funding rounds for a cryptocurrency company this year demonstrates a large financial commitment from Monad, rumored to be in discussions with Paradigm for the round at the beginning of the month.

Monad offers a blockchain solution referred to as “layer-1,” a top-level network that facilitates the development and deployment of decentralized applications, or dapps. Additionally, the business is creating an interoperable ecosystem with Ethereum virtual machines, meaning that any dapps already operating on the Ethereum blockchain may be seamlessly transferred to Monad without requiring any changes. Due to its widespread usage for financial, social, and gaming dapps, Ethereum is currently the second largest blockchain by market capitalization.

As per Monad’s promises, it is developing a highly scalable and performant blockchain that is optimized for transaction speed and efficiency to rival Ethereum and other EVM-compatible blockchains like Solana. Due to scalability problems that cause bottlenecks and high operating costs for decentralized applications, high throughput blockchains like Ethereum are seeing competition from other blockchains and the emergence of scaling solutions.

According to Monad, it’s creating a new Ethereum virtual machine from scratch rather than just replicating Ethereum’s code. Instead of waiting for each part to finish, it will employ parallelization to run code more rapidly and efficiently.

Monad promises to allow 10,000 transactions per second with a one-second block period—a noteworthy throughput for a blockchain network. Ethereum, in contrast, processes 20 to 30 transactions every second on average and takes 12 seconds to process a block.

The business plans to put its blockchain network into production and scale its workforce further with the additional cash. The mainnet release of Monad is scheduled to happen later this year, but its public testnet is anticipated to go live shortly, providing developers time to get their dapps ready.