Subspace Labs Inc., a scalable infrastructure layer solution for Web3 blockchain ecosystems, today announced it raised $ 32.9 million in a round of funding to expand its integrations and start more projects.
The new financing was led by Pantera Capital. Coinbase Ventures, Crypto.com, Alameda Research, ConsenSys Mesh, KR1, Hypersphere Ventures, Stratos Technologies, AVG Blockchain Fund, GSR Ventures and Eniac Ventures also participated in the round. The new round follows a $ 4.5 million seed round in June 2021 led by Hypersphere and Stratos.
Subspace Labs was founded in 2018 by Chief Executive Jeremiah Wagstaff and Chief Technology Officer Nazar Mokrynskyi with the objective of building a scalable layer for Web3, where users would be in control of their own data. Web3, or the decentralized web, is based on blockchain technology that uses peer-to-peer networks and self-executing software-defined smart contracts to operate without the need for centralized servers.
“With the support of our investors, Subspace is re-envisioning the types of apps that can be stored on and secured by a blockchain,” Wagstaff said.
According to Wagstaff, during the current phase of the adoption of crypto networks are experiencing massive growth and this is leading to what is called “blockchain bloat.” In order to contend with this bloat, many networks artificially limited their own scalability by limiting block size, which resulted in high transaction fees. Those high fees limit crypto adoption to the wealthiest adopters.
That can be a massive hindrance for killer apps in industries such as decentralized finance, blockchain gaming and nonfungible tokens that require millions of transactions per second and storage for billions of tokens. Without a scalability solution capable of handling the bandwidth and storage requirements, the ecosystem of decentralized applications cannot grow along with the rest of the industry.
By providing a cutting-edge scaling solution, Wagstaff believes that Subspace will provide a much-needed pressure valve for Web3 ecosystems and ease those problems.
The objective of Subspace is to empower developers with “tools and services” Wagstaff explained with the intent of giving them what they need to “unlock the next wave of innovation in Web3.” To do that, the company has developed a core combination of consensus, storage and compute to deal with the blockchain bloat problem.
Subspace said it plans to use the new funding to triple the size of its protocol engineering team and deepen its integrations with blockchain projects, including projects such as the Polkadot, Kusama and Ethereum ecosystems.
The company is also building out its suite of products, including Subspace Meta Services, a suite of tools and interfaces for developers to easily manage activity across chains. These tools include MetaBlock, a unified application programming interface for on-chain history, MetaVault, a multichain storage service for NFT metadata such as video or image files, and MetaSwap, a cross-chain exchange protocol for blockchain assets.