The Nervos Network has received $28 million in their Series A funding round to help them build an enterprise blockchain network.
The startup, which aims to create a public blockchain network itself named Nervos, raised the money from leading investors such as the prolific Sequoia China and Polychain Capital, among others such as Wanxiang Blockchain, FBG Capital, Blockchain Capital, and more.
Co-founder Jan Xie is a former Ethereum Foundation developer and now seeks to take a hybrid approach which combines a public blockchain with an extra layer called an ‘application chain’. Nervos claims this resolves common blockchain network issues of security and scalability.
This double-layered approach allows a secure public chain to be overlaid with the application chain on top. The idea follows that businesses can develop decentralized apps (dApps) on top of a secure public enterprise blockchain network, but have them run solely in the application chain.
“While there are undeniable benefits for enterprises that utilize blockchain technology to innovate and improve existing systems, enterprise adoption has been held back by a host of challenges like scalability, security, and complexity,” Xie said in a statement.
“The new funding will allow us to move full speed ahead as we build an infrastructure that will allow enterprises to reduce the costs of developing and deploying blockchain applications.”
In a statement, Nervos said that its plans are to use the funding to expand its product and engineering teams and work more rapidly on developing its enterprise blockchain network technologies.
The startup will also be seeking more strategic partnerships following the successful round of funding.
Credibility has certainly been forthcoming with a vote of confidence from some big players. Ji Yue, partner and director of Sequoia Capital China, commented: “There’s no shortage of blockchain projects but Nervos stands out.”
“It has a clear mission and a well-defined plan to bring tangible and immediate benefits to the most promising segment of blockchain users.”
An effective enterprise blockchain network could lead to widespread business adoption, a promising prospect for the technology. Such a successful Series A might promise great things ahead for Nervos, but let’s see first what they start announcing in terms of strategic partners.
Callum reports on developments in the cryptocurrency world and offers a take on the future of the blockchain. Can often be found with a cup of tea reading an altcoin whitepaper.