Investment giant Andreesen Horowitz invests in a better Ethereum
Major investor Andreesen Horowitz has taken a stake in a promising scaling solution for Ethereum.
Ethereum bursting at the seams is nothing new. But with emerging competition from the Binance Smart Chain and other smart contract platforms, the first mover is finding itself increasingly squeezed. High network fees and Bitcoin Bank low transaction throughput – this cannot go well in the long run. Until Ethereum 2.0 with all its planned scaling solutions such as proof of stake and sharding is launched, several (crypto) winters may still be in store. That’s why research is already underway into solutions to also relieve the current Ethereum blockchain with outsourced scaling solutions.
Andreesen Horowitz has now also taken on the issue
The venture capitalist has participated as lead investor in a USD 25 million funding round for start-up Optimism. Optimism is exploring a technology called ZK Rollups that could provide a solution to Ethereum’s fee usury.
We’ve spent a lot of time looking at different approaches and teams building Layer 2, and today we’re excited to announce that we’re leading a $25 million Series A investment in Optimism. […] Optimism’s exceptional team, carefully designed developer experience, great scaling benefits, years of research and testing, and full compatibility made it the obvious choice.
argues Andreesen Horowitz in a related press release. Optimism is currently conducting a soft launch of its Layer 2 solution Optimistic Ethereum. The fact that the project was able to stay on schedule is thanks in part to the legendary hacker George Hotz. He spontaneously wrote the compiler that makes the Ethereum Virtual Machine compatible with the Optimistic Virtual Machine. How this came about can be traced in a tweet storm that is well worth reading.