This Israeli firm secures $70 million in funding for blockchain chips
There has been an increase in the global use of blockchain technology, so more companies and organizations are now exploring the potential of the technology through many approaches. Therefore, there is a sudden growth in the systems, projects and processes of blockchain and its applications.
One of the newest exploits on the blockchain is from an Israeli startup, Chain Reaction. The firm will develop blockchain tokens through a $70 million fund.
Morgan Creek Digital led the just completed fundraising round. Other participants include KCK Capital, Jerusalem Venture Partners, Hanaco Ventures, Blue Run Ventures, Atreides Management and Exor.
Chain reaction and the plan with blockchain chips
According to a report from Reuters, Chain Reaction has raised $70 million in a Series C fundraising round. The firm has now raised $115 million to create blockchain tokens while still in stealth mode. The Tel Aviv-based firm stated that it would channel the funds into expanding its engineering team. It plans to launch the first products before the end of Q1 2023.
The co-founder and CEO of Chain Reaction, Alon Webman, talked about the process, discussed the route of operation. He mentioned that they would start making the Electrum blockchain chip during the first quarter.
According to him, the chip will quickly and efficiently perform operations known as “hashing”. It will also be used in digital asset mining activities such as Bitcoin mining.
Furthermore, the CEO stated that the firm was focusing more on privacy applications. It plans to develop processors that will maintain the calculation for encryption technologies related to privacy. Homomorphic encryption is at the top of the list, allowing users to operate on data since the chip is fully encrypted.
In particular, homomorphic encryption is a means of data protection and privacy that involves end-to-end encryption and the entire data usage process. This type of encryption has made some breakthroughs within the academic and theoretical world. However, there are still some challenges surrounding the practical application. That’s why Chain Reaction plans to tackle such roadblocks.
Advantages of the new blockchain chips
Webman noted some limitations when it comes to data encrypted into the cloud. Typically, operators must decrypt the data before analyzing or using previously encrypted data.
The CEO mentioned that governments and other top industries, including the defense sector, that can use cloud services are restricted from doing so due to security concerns.
This is because malicious users can access the data once it is decrypted and read, modify or even steal it. But with an encrypted chip, such problems will cease as operators do not need to decrypt data before it can be used. They would rather access the data while it is still encrypted.
Chain Reaction is a technology-based company that develops semiconductors and other related processes used in blockchain. It also operates within the framework of privacy hardware involving cryptographic processes.
Featured image from Pixabay and chart from Tradingview.com
