Hemi Labs, a startup co-founded by former bitcoin Core developer Jeff Garzick, has raised $15 million in its seed funding round. The investment was led by notable backers Binance Labs, Breyer Capital, and Big Brain Holdings.
According to Fortune crypto/2024/09/18/hemi-labs-raises-15-million-from-binance-to-launch-advanced-modular-blockchain-network-for-bitcoin-and-ethereum/?itm_source=parsely-api” target=”_blank” rel=”noopener nofollow”>reportHemi Labs aims to create a new “supernet” that integrates the capabilities of bitcoin and ethereum, filling what they see as a “long-standing gap in blockchain technology.”
ethereum-compatible technology for bitcoin?
Launched in July at this year's bitcoin Conference in Nashville, Hemi Labs introduced a technology that operates within ethereum Virtual machine (EVM). This development will allow ethereum smart contracts to interact directly with bitcoin, a breakthrough that could purportedly transform the way these two major cryptocurrencies communicate and work together.
Co-founder Max Sanchez, who previously participated in Garzick’s incubation program at Bloq, said the funding will be used to expand Hemi’s engineering team and improve its interoperability features with bitcoin.
In addition, the company plans to provide developers with advanced customization options, as well as incentives, grants and initiatives to drive community engagement. While Sanchez declined to disclose the company’s valuation, he emphasized the potential of Hemi’s technology.
Sanchez is a co-founder of VeriBlock, where he developed a consensus mechanism known as Proof-of-Proof. Although VeriBlock did not achieve the expected success, Sanchez has integrated aspects of that technology into Hemi Labs.
Hemi Labs' vision for Web3
According to the report, Hemi Labs has generated considerable interest among web developers and computer scientists, but Sanchez is optimistic that its appeal will expand to a broader audience. He sees Hemi as “an ideal platform” for anyone interested in decentralized finance (DeFi) using bitcoin and ethereum assets.
Interestingly, Hemi Labs is not the first company to attempt to bridge the gap between bitcoin and ethereum. Earlier this year, startups ByBit Web3 and Ignition announced a partnership to create a DeFi solution that integrates the two cryptocurrencies.
However, Sanchez believes Hemi sets itself apart by using “newer technology that transcends the boundaries of individual blockchain communities.”
The funding round also attracted investments from a diverse group of backers including crypto.com, Web3 Ventures, Hyperchain Capital, Alchemy, and SALT Fund, among others. Ted Breyer, an early investor in social media companies facebook and Spotify, commented on the potential of Hemi Labs, saying:
The Hemi team has a clear and compelling vision for unlocking the programmability, portability, and potential of Web3. With a distinguished track record, they are uniquely positioned to deliver on this goal.
At the time of writing, the market’s top cryptocurrency, bitcoin, is trading at $59,650, down more than 1% after hitting a three-week high of $61,200 on Tuesday. ethereum, on the other hand, is trading at $2,300, also down more than 2% on the 24-hour time frame.
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