Chainweb Raised $2.7M in pre-A Financing Round

Chainweb in focused on scaling and security issues and realized through the combination of multiple peer blockchains to process transactions
31 January 2018   178

Based on the results of the preliminary round of financing for the new blockchain project Chainweb, the Kadena start-up managed to raise 2.25 million dollars. According to representatives of the start-up, in the closed round of financing participated companies Metastable, Kilowatt Capital, Coinfund and Multicoin Capital.

The funding is aimed to support the Chainweb project, which is aimed at solving the problems of scaling and security of blockchains. According to one of the founders of the project, Stuart Popejoy, the proposal is planned to be implemented through the use of a combination of several peer-to-peer blockchains for transaction processing instead of one decentralized blockchain.

Using several blockchains, users will be able to avoid the problems that are currently experienced by other public blockchains, in particular, Bitcoin and the Ethereum.

A Cryptokitties-like application can run on five or six chains of its own, while a massive [initial coin offering] can happen on another chain in the network and they won't slow each other down. And even if you run into an issue where you have congestion, you can provision chains to make up for the load.

JP Morgan Chase ex-developer

Unlike the other scaling suggestions, when processing a large number of transactions, the parallel network model of Chainweb maintains security without using side channels or using only a part of the blockchain. Popejoy says that Kadena tests have demonstrated an extremely high level of security of supply, the ultimate goal of which is the interaction of thousands of different blockchains.

Additionally, each block will produce Kadena tokens, although the exact number and timing of their production have not yet been determined. In this case, the protocol Chainweb guarantees the impossibility of the simultaneous existence of the same coin in two different blockchains.

It is a single currency, when you want to move coins from one chain to the next it's a [Simple Payment Verification] so coins are deleted on one chain before being created on the other.

Stuart Popejoy

Initially, the project was planned as a way to develop an improved language for smart contracts for users. It was integrated with the Pact solution - service of smart contracts, already provided by Kadena for corporate clients. However, according to Popejoy, the Chainweb project will go further and eventually develop into a public network. 

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   78

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.