• Chain Reaction, a Tel Aviv-based blockchain startup, has raised $70 million as part of its Series C funding round.
• The objective of the company is to expand its engineering staff to accelerate the production of its blockchain-focused silicon and collaborate in the development of its cryptographic-focused chips.
• Chain Reaction plans to use its first batch of blockchain chips as a trampoline to developing more advanced silicon, designed to tackle cryptographic problems such as homomorphic encryption.
Chain Reaction Raises $70 Million in Series C Funding Round
Chain Reaction, a Tel Aviv-based blockchain startup, announced it has raised $70 million as part of its Series C funding round. The round was led by Morgan Creek Digital and saw the participation of Hanaco Ventures, Jerusalem Venture Partners, KCK Capital, Exor, Atreides Management, and Blue Run Ventures. With this capital influx, the company expects to increase its engineering headcount in order to hasten the development of its blockchain silicon products.
Objective: Development Blockchain-Focused Silicon
The objective of Chain Reaction is to expand its engineering staff in order to accelerate the production of its blockchain-focused silicon and collaborate in the development of its cryptographic-focused chips. The mass production for their first batch of chips — called „Electrum“ — will start in Q1 2023. Electrum is an ASIC chip designed for bitcoin mining and will be produced by Taiwanese foundry TSMC.
Cryptographic Solutions with Homomorphic Encryption
Chain Reaction also aims to use their first batch of blockchain chips as a trampoline to developing more advanced silicon solutions that can tackle cryptographic problems such as homomorphic encryption. This could allow them to make operations with encrypted data without decrypting it in the first place which could have several applications in cryptography fields allowing for more efficient and private operations without having plain information exposed during data processing operations.
Valuation Estimated at Around $500 Million
Techcrunch estimates Chain Reactions valuation at around $500 million after raising $115 million since their founding however no official value was disclosed by the company itself.
Conclusion
Chain Reaction plans on using their new funds from their Series C funding round towards expanding their engineering staff and accelerating their production process for Electrum — an ASIC chip designed for Bitcoin Mining — with mass production estimated for Q1 2023 alongside tackling cryptographic problems through homomorphic encryption solutions once developed further down the line.
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