Blockchain Developer Monad Labs Raises $225M Led by Paradigm

Monad Labs, aiming to create a faster variant of Ethereum, announced they secured $225 million in a funding led by Paradigm. This financing will be utilized for hiring more team members and investing in the transition of their test blockchain into full-scale operation.

The foundational blockchain can work with Ethereum’s Virtual Machine (EVM), which runs Ethereum’s regulations and checks if transactions and smart contracts adhere to these rules. Approximately 96% of the investment in decentralized finance (DeFi) is managed through the EVM, as mentioned by Monad on Substack.

Despite the fact that Ethereum processors only manage around 20 transactions per second based on data from etherscan.io, Monad’s testnet, launched in March, boasts the capability to process approximately 10,000 transactions per second.

The slow performance of Ethereum has led to numerous initiatives aiming to create a quicker Decentralized Finance (DeFi) ecosystem. These projects include new layer-1 blockchains like Solana and Cardano, as well as second-layer solutions that group transactions together, process them swiftly, and subsequently validate them on Ethereum for confirmation.

Monad refined the blockchain programming by implementing methods like parallel processing, enhancing efficiency across the entire protocol and boosting overall transaction processing speed.

Several investment firms participated in the funding round, among them were Electric Capital, Castle Island Ventures, Animoca Ventures, Coinbase Ventures, and CoinFund.

Read more: Crypto Startup Monad Labs Aims to Create Next ‘Ethereum Killer’ After Raising $19M