Chain Reaction, a Tel Aviv-based blockchain startup, has declared that it has raised $70 Million as part of its fundraising Series C funding round. The goal of the firm is to expand its engineering staff to speed up the manufacturing of its blockchain-focused silicon, and to work together on the development of its crypto-focused chips.
Chain Reaction achieves $70 million Series C financing round
Chain Reaction, a startup that produces blockchain-based silicon, has announced that it has raised $70 Million. This Series C financing round was managed by Morgan Creek Digital, which is part of Morgan Creek Capital, an investment firm co-founded by crypto influencers Anthony “Pomp” Pompliano and also featured Hanaco Ventures, Jerusalem Venture Partners, KCK Capital, Exor, Atreides Management, and Blue Run Ventures.
With the fresh capital, the company intends to expand its engineering team to accelerate the production of its blockchain-based silicon products. They are scheduled to go on sale later this year. According to Chain Reaction founder and CEO Alon Webman, mass production of the first batch, known as “Electrum,” is scheduled to begin in the first quarter of 2023.
As reported by Reuters, Electrum ASIC chips will be available for cryptocurrency mining, competing with the likes of IBM and Microsoft. Bitmain. The factory-free startup is using TSMC, one of the world’s largest chip foundries, to mass-produce its chips.
The company did not disclose its valuation, although Techcrunch reports that it has raised $115 million over its lifetime, aiming for a $500 million target.
Blockchain Chips and Homomorphic Encryption
Chain Reaction has plans to release its first batch of blockchain chips as a stepping stone to further developing advanced silicon to tackle cryptographic challenges.
In particular, the most advanced chips would focus on homomorphic encryption, which would enable operations to be performed on encrypted data without needing to decrypt it first.
This type of cryptography has numerous applications, allowing for more secure and private operations without having to share sensitive data.
Even with limited processing capabilities, the firm is confident that they will find a solution to this cryptographic problem. Chain Reaction co-founder and CEO Alon Webman commented:
We believe that homomorphic encryption will be possible with our solution. We have a different architecture and can also understand the compute and memory limitations among today’s processors. We have the solution you need to make it happen.
Chain Reaction’s chip will be released in the second half of 2024.
What do you think about Chain Reaction’s blockchain-based silicon? Let us know in the comments section below.
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