Monad Labs Secures $19 Million in Seed Investment to Develop EVM-Compatible Smart Contract Infrastructure

Today, Monad Labs, an innovative tech startup funded by venture capital and responsible for the Monad blockchain, revealed the successful completion of a $19 million seed funding round led by Dragonfly Capital. Notably, 70 investors participated in this round, which included Placeholder Capital, Lemniscap, Shima Capital, Finality Capital, along with renowned angel investors like Naval Ravikant, Cobie, and Hasu, among others.

Founded in 2022 by a team hailing from Jump Trading, Monad Labs boasts a staff with over seven years dedicated to crafting low-latency, high-frequency trading infrastructures, as shared in their press release.

As DeFi ecosystems on Ethereum-compatible platforms grapple with scalability challenges due to the limitations of current Layer 1 protocols and soaring transaction fees, Monad Labs seeks to rectify these problems with the introduction of its blockchain, an EVM-compatible Layer 1 smart contract platform.

“The potential of any decentralized application (Dapp) hinges partly on its underlying blockchain on which it is built current transaction costs on existing blockchains significantly restrict development on-chain, compelling a trade-off developers to choose between security and computational efficiency, which often results in security vulnerabilities. At Monad Labs, our mission is to construct a blockchain that mitigates these issues, paving the way for rapid advancements in the decentralized ecosystem,” remarked co-founder James Hunsaker. CTO of Monad Labs .

Funds will be used to develop the Monad Labs ecosystem . The Monad blockchain operates on a proof of stake The consensus mechanism is designed for a throughput of 10,000 transactions per second, a considerably higher rate than Ethereum's current capacity. 30 transactions per second Ethereum aims to reach a goal of processing 100,000 transactions each second through methods like proof of stake and sharding, but actual implementation may take several years, especially after Ethereum transitioned to a proof-of-stake model in September 2022 .

As financial giants dip their toes into the DeFi waters, Monad Labs is ambitious in establishing an efficient Layer 1 blockchain to secure its market footprint. web3 space With a founding team with backgrounds from Jump, Monad Labs recognizes the imperative for speed. They are actively parallelizing the EVM to construct a

and EVM realm that competes against conventional tech and finance systems. blockchain network Chris Burniske, a partner at Placeholder Capital, commented in a statement.

Monad will seamlessly integrate with all existing EVM-based smart contracts, and a testnet is set to launch in the near future, followed by a mainnet rollout later this year.

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