What’s Going On?
Chinese blockchain company Nervos Network is the latest to cash in on the global venture capital industry’s growing appetite for crypto investments.
Why Does It Matter?
Nervos landed $28 million in a funding round led by Sequoia China and Polychain Capital, in addition to Multicoin Capital, FBG Capital and others, reported TechInAsia. The company says it will use the funds to hire more staff and speed up development of its blockchain, it was reported, with some capital to be spent on strategic partnerships with other companies.
CoinDesk reported Nervos is taking a hybrid approach that combines a public blockchain with another layer described as an “application chain”. Nervos says the system will address blockchain issues of scalability and security.
Where Else Will The Money Go?
On educating the enterprise: Jan Xie, Chief Architect and Co-Founder of Nervos Network said: “[There is] no doubt about the benefits to the enterprise by using blockchain technology to innovate or improve existing systems, but in actual application scenarios, there are many difficulties in the popularisation of blockchain technology, such as scalability and complexity,” reported China Money Network.
Polychain Capital is leading the way in cryptocurrency investing, reported Forbes when Polychain became the first crypto fund with more than $1 billion in assets under management earlier this year.