The recent announcement of the Layer N’s seed funding round -a rather audacious $5 million investment led by Peter Thiel’s Founders Fund and the collective, dao5- puts a spotlight on the burgeoning tech startups in the crypto world. Layer N, as described by its team, is a superseding layer designed for Ethereum, characterized by a high transaction throughput and unparalleled lesser transaction fees. What’s eyebrow raising is their bold claim of intending to offer a fierce competition against existing traditional financial networks.
However, one can’t simply ignore the fact that Ethereum’s base layer, in the past, has repeatedly faced hurdles with high fees and slower transaction speeds, triggering developers to devise more efficient layers, particularly better tuned for decentralized finance or DeFi applications. Questions, therefore, lie whether Layer N can genuinely provide a breakthrough in this domain and overcome Ethereum’s inherent challenges.
The funding round witnessed conspicuous participation from an assembly of preeminent crypto investment firms. With ventures such as Kraken Ventures, Mirana Ventures, GSR and Amber Group throwing their hats into the ring, it is undoubtable that the endeavor is attracting some serious attention.
Notable is the fact that the major chunk of the funding comes from Peter Thiel’s Founders Fund, which donated an impressive $1.8 million towards the cause. Thiel’s antennas have been long tuned towards Bitcoin and crypto, with rumors suggesting an intriguing possibility of an acquaintance with Satoshi Nakamoto, the prodigious face behind Bitcoin, in the distant past.
Interestingly, Thiel’s fund had made the news earlier this year with a whopping billion-dollars-plus profit from selling off most of their crypto holdings, smartly done just before the market downfall. This strategic move draws attention towards the fund’s increasing focus in the crypto world as they gear up to take advantage of this revolutionary tech sector.
Nevertheless, in the volatile and unpredictable industry that is cryptocurrency, one can only speculate Layer N’s trajectory in this high stakes world. Whether Layer N will live up to the hype and truly revolutionize Ethereum’s financial layer or if we are a witness to a fleeting illusion marked by the gleam of promising technology, only time will tell.
Source: Cryptonews
