Dfinity Foundation has received a $61 mln investment

The company aims to design an ‘Internet computer’ with multiple computers connected together using blockchain
10 February 2018   95

Top venture capital firm Andreessen Horowitz and a cryptocurrency hedge fund Polychain Capital have made a generous investment of $61 mln in Dfinity Foundation. Both the investors are to receive Dfinity’s tokens after the network’s launch set to take place later this year. This investment is largest to date for Polychain Capital.

Of the $61 million funding, $21 million will go directly to research and development of the network, while the rest is going to DFINITY’s Ecosystem Venture Fund.

 

Dominic Williams

DFINITY’s president and chief scientist

Based in Switzerland, the company is developing its own blockchain protocol that is meant to support a public decentralized cloud computing platform. According to the statement of Dfinity, such open network would allow decentralized version of such popular online technology services as Uber, Dropbox, Ebay, etc. The protocol simplifies traditional IT systems that include databases, backup systems and the other components. Thus, the cost is cut by an estimated 90%. On top of that, Dfinity incorporated BLS cryptography designed at Stanford University making it very secure.

As for Ecosystem Venture Fund, its purpose is to support technical teams building applications, tools and protocols for deployment on Dfinity.

We believe ultimately that if you're going to have millions of businesses hosted on the internet computer, you're going to need a team of thousands of people who are constantly analysing the performance of the computer and looking for security threats

 

Dominic Williams

DFINITY’s president and chief scientist

As for Reddit reaction, it was skeptical mainly because Dfinity raised money not by means of an ICO, i.e. community investment, but rather by means of centralized investment companies:

u/Esqarrouth said “I'm disappointed by the Dfinity team. The community can and is providing more help to Dfinity than 2 investment firms ever can. The community could've also raised at least this much, possibly more funds. It bothers me that people are playing the "startup up game" instead of doing it Satoshi's way (Distributing to the community in a fair way).”

u/Zilliqa said “what a time to live in. blockchain companies are working on decentralization but centralized their funding”

u/smithhadl said “These guys underestimate the power of a community boycott”

u/ynotplay said “Hi. I'm confused about this. Does this mean that there will be no public crowdsale beyond the initial seed and this private $61 million? Or is the public just getting a very small portion of the pie?”