Ethereum-based Obol Labs Nets $12.5M in Build Decentralize Validators
A recent funding round led by Archetype and Pantera capital enabled Ethereum-startup Obol Labs to garner $12.5 million. The startup firm targets to utilize the proceeds from the round to build the distributed validator technology (DVT).
The Obol Labs project is driven by the Ethereum swapping proof-of-work (POW) with the proof-of-stake (POS) in September. The new system facilitates transaction processing though handing the network’s control to validators, unlike in POW, dominated by crypto miners.
Funding Round Defies the Crypto Winter
The funding round weathered the prevailing crypto bear market to raise $12.5 million. The funding attracted multiple venture capitalists demonstrating confidence in Ethereum’s POS. As such, the participants in the round cited the growth opportunities presented by the DVT projects. The DVT tech is poised to solve the pain points experienced by Ethereum’s validator class.
The round brought on board crypto enthusiasts’ venture capital. In particular, Obol Labs lauded the input of two VC icons, Archetype and Pantera Capital, in co-leading series A round. The startup spokesperson appreciated the input of ConsenSys, an Ethereum-based firm, in raising the fund that now realized $19 million.
DVT Delivers Split and Multitasking
Obol Labs explained that DVT involves a primitive technology allowing the Ethereum POS validator to run simultaneously on multiple machines. The DVT breakthrough is its ability to split the single validator key to enabling individuals to share validation rights.
Validators earning rewards by operating a network of nodes that runs Ethereum has, in the past, admitted confronting high capital requirements. In particular, the validator requires one to stake 32 ETH besides the technical complexity, where one can incur penalties whenever the network screws and goes offline. The above barriers leave the network’s control in the hands of a few big players, Coinbase and Binance.
Solutions-Based DVT
Obol acknowledged the leadership of the decentralized autonomous organization (DAO) Lido. The validator is considered collective for pooling users’ deposits later distributed via professional node operators. Obol revealed partnering with StakeWise and Lido in plans to utilize DVT in securing and easing the distribution of users’ funds.
Obol’s DVT project is set to overcome the challenges from centralized control that has plunged Lido, Binance, and Coinbase, citing the capability to influence the network and interfere with transactions’ processing.
Oboil chief technology executive Oisín Kyne assured its DVT would minimize outages and mishaps. He added that the communities of stakers should run the validators and not a few powerful actors.
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