Chain which builds APIs i.e. Application Programming Interfaces for clients that want to run applications on top of the core software programs that run decentralized cryptocurrency networks and form the foundation of their all-important Blockchain transaction ledgers, has lined up $9.5 million in funding. The funding is part of Silicon Valley’s enthusiasm for “Bitcoin 2.0” projects.
The funding round was led by Khosla Ventures which was founded in 2004 by Vinod Khosla of Indian origin and a former general partner of Kleiner Perkins Caufield & Byers. Interestingly, his investment partner Keith Rabois is a cofounder of PayPal Inc. is expected to join Chain’s board sooner to help it have foothold in Bitcoin industry.
So far Chain has been able to gain money from early backers RRE Ventures, Thrive Capital and SV Angel. It also received funds from the first-time contributions from new investors such as Kevin Ryan and Bitcoin entrepreneur Barry Silbert. The company wants to use the funds to help developers build Bitcoin applications.
Adam Ludwin, the co-founder of Chain believes that Bitcoin is this tremendous financial innovation that’s changing the world, and his company is excited to play a central role in that. He also promised that Bitcoin offers to basically hit the reset button on the financial system is real and that may be a reason behind its popularity.
From the previous such fund raising events that includes $30 million in May this year by the Bitcoin company BitPay and Coinbase, a third-party payment processor, raising $25 million led by the investment firm Andreessen Horowitz in December last year, it looks there is a lot of attraction for the digital currency among investors.
Venture Capitalists Showing Their Interests in Bitcoin Startups as They See Potential
Adam Ludwin believes that as Bitcoin has huge potential venture capital companies are attracted to invest and reap the dividends. He admitted that he thinks venture capitalists now recognize the huge commercial potential of the technology as many of them taking Bitcoin incredibly seriously.
Playing pivotal role in Bitcoin ecosystem, Chain allows developers to integrate the currency’s technology more easily into their products. With the latest addition of funds, it will further be able to provide better services including helping thousand of developers building products like Bitcoin wallets and exchanges.
The company which has understanding with some big financial institutions that want to connect Bitcoin to their traditional offerings, may harness the Blockchain technology itself, which could eventually enable other decentralized systems beyond Bitcoin.
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com
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