a16z Leads $25 Million Funding Round for Ethereum Layer-2 Scaling Solution Optimism

Friday 26 February 2021, 3:25 AM AEST - 1 month ago

a16z Leads $25 Million Funding Round for Layer-2 Scaling Solution Optimism

Layer-2 scaling solution for Ethereum – Optimism – has found a major backer in Andreessen Horowitz.

Andreessen Horowitz Leads $25 Million Round

The race to become the first Layer 2 scaling solution to fix the high gas fees woes for the largest smart contracts platform is heating up. The demand – both institutional and retail – for Layer 2 scaling solutions has experienced an uptick in recent times amid skyrocketing Ethereum transaction costs pushing as high as $40 on February 23.

Already, the likes of Matic Network (now Polygon), Arbitrum, and Optimistic are burning the midnight oil to become the first Layer 2 solution that is able to tackle Ethereums unaffordable gas fees problem at the earliest.

Against this backdrop, major venture capital firm Andreessen Horowitz (A16z) recently announced it is leading Optimisms $25 million Series A investment round.

The official announcement reads in part:

Weve spent a great deal of time looking at various approaches and teams building Layer 2s, and today were thrilled to announce we are leading a $25 million Series A investment in Optimism. Optimism is an Ethereum Layer 2 scaling solution that uses optimistic rollups to achieve far lower fees, far lower latency, and far greater throughput versus Ethereum Layer 1 alone while also providing a world-class developer and user experience.

For those not in the know, Optimism leverages rollups to bundle transactions together using smart contracts on an Ethereum side-chain before broadcasting them to the mainnet. Through this, Optimistic is not only able to achieve lower fees but also lower latency, and greater throughput vis-a-vis transacting on Ethereums Layer 1 mainnet.

At present, Optimism is in the midst of a phased roll-out and is expected to be ready for large-scale production toward the end of 2021.

Layer 2 Solutions Couldnt Come Earlier

While Ethereum has, for a long time, enjoyed its status as the largest and most active smart contracts platform, the recent surge ...

Read full story on BTCMANAGER

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.