Emerging blockchain project, Linera, has recently secured $6 million in a funding round led by venture capitalist fund Borderless Capital. Established by ex-Meta Novi engineer Mathieu Baudet, Linera’s total raised capital now stands at an impressive $12 million.
These newly raised funds are earmarked for team expansion, initiation of a devnet and testnet for the protocol, and for creating a strategic base in the APAC region. Added to these, Linera plans on nurturing its developer academy for sustained growth.
The layer-1 blockchain protocol is uniquely addressing scalability issues. Rather than increasing the size or production rate of blocks, Linera is innovating with the concept of “microchains”- smaller chains that function within the main blockchain. This shift in design tackles the block space competition and limited production rates, which regularly bottleneck during high traffic periods. Such bottlenecks either inflate the pricing or cause significant delays, disrupting the functionality of traditional layer 1 blockchain.
Adding microchains, which are easily integrated into browser extensions and mobile devices, improves Web3 app interactions within users’ wallets. Each user possessing its lightweight chains eradicates the infrastructure unavailability issue during traffic peak times.
By allowing an endless number of smaller user chains, Linera aims to import the extensive expansion capabilities of Web2 into Web3 apps. While this might appear as a plus, we must bear in mind that the interconnectivity of such chains could introduce a complex web of dependencies, potentially making the system more vulnerable. Still, the assertion of such vulnerability is preemptive, as the technology is yet to see widespread use.
Venture capitalists seem to believe in this technology’s future, with prominent names like Laser Digital Ventures (Nomura), Flow Traders and Eterna Capital investing in the new round. Furthermore, A16z crypto, along with Tribe Capital, has led the start-up’s initial seed round.
Ultimately, as Linera’s prospects seem promising, and its approach offers an alternative solution to block space competition, the microchain strategy demands scrupulous observation and analysis following its implementation.