Shardeum, an upcoming EVM-based L1 that uses “dynamic state sharding” to achieve scalability, raised a $5 million in a strategic round at a valuation of $248 million. This follows the company’s $18.2 million seed round in October 2022 at a $200 million valuation. Sharding refers to a technique where a blockchain network is split into separate “shards.” This improves the scalability of the blockchain because each node is not required to process every transaction on the network, thus enabling parallel processing. As a network adds nodes, new shards are created and the network becomes more decentralized.
Sharding is certainly not unique to Shardeum, but the company developed a process called “dynamic state sharding” to allow for greater scalability. With static state sharding, each node in a shard covers the same address range. With dynamic state sharding, each node covers a unique address range, but there is significant overlap between nodes. This means that each additional node improves scalability linearly, while adding nodes to an L1 that utilizes static state sharding will only increase scalability if the number of new nodes is at least as high as required for the minimum shard size.
The L1’s native token is SHM, and a mainnet is planned for Q3 or Q4 2023. This is a project that Ruceto is very likely to cover in a deep dive investor report, so stay tuned for updates.
VC Investments into Crypto Projects
The full list of the institutional investments that Ruceto tracked last week is below. Links to the target company website, investment announcement, and token info are provided via hyperlinks on the Target Name, $ Raised, and Token columns respectively.
| Target Name | $ Raised | Lead Investors | Description | Token |
|---|---|---|---|---|
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Atinum Investment |
Provider of on-chain data and analytics |
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Amber Group, Galxe, J17 Capital, TRGC, Jsquare, Bware Labs, Tané Labs, Hyperithm Group, Luganodes, and more |
EVM based L1 that uses dynamic state sharding to linearly scale. |
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Binance Labs |
Developing AI-native digital asset tools and data infrastructure to 1) enable real-time on-chain and off-chain data processing, 2) support content creators with a generic multi-modal large model, and 3) verify ownership with a digital asset circulation protocol |
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Web3.com Ventures and Foresight Ventures |
Privacy focused ZKVM Layer 2 platform for Ethereum |
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Nyca Partners |
Enable trust and estates to manage a client's digital assets without requiring a deep technical understanding of crypto assets |
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What’s happening at Ruceto
We just released the first of multiple reports explaining how several crypto companies are working to utilize blockchain technology to compensate people around the world for using their idle hardware to power the development of AI models. AI model development is extremely expensive, and there is a threat that AI will be dominated by a few massive firms that can afford the necessary hardware. This exciting Web3 use case could help make sure that AI development remains open and affordable. Read this and the rest of our investor reports for free with a 7-day trial! (“Founding Members”)
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