Nocturne Labs Raises $6 Million in Funding for Privacy Protocol on Ethereum
Nocturne Labs, a privacy protocol aiming to bring private accounts to Ethereum’s public blockchain, has closed a $6 million seed funding round. The round was led by Bain Capital Crypto and Polychain Capital, with participation from Ethereum co-founder Vitalik Buterin, Bankless Ventures, Hack VC, Robot Ventures, and others. The funding will support the deployment and ongoing development of private accounts on Ethereum. Nocturne Labs plans to launch the protocol in the second half of November, utilizing blockchain technologies such as zero-knowledge proof, account abstractions, and stealth addresses. The startup aims to enable anonymous transactions within the Ethereum ecosystem.
The Functionality of Nocturne Privacy Protocol
Nocturne Labs’ co-founder and CEO, Luke Tchang, explains that the protocol’s accounts “function like conventional Ethereum accounts but with built-in asset privacy.” Users can deposit or receive payments into their Nocturne account and use zero-knowledge proof technologies to prove ownership of those funds for transactions like payments, trading, and betting. The goal is to enable privacy while using crypto so that users can receive salaries on the blockchain without revealing earnings, make purchases without revealing spending habits, and store assets on the blockchain without revealing their total value. The protocol also plans to support Ethereum Layer 2s in the future.
Compliance with US Regulations and No Personal ETH Sales by Vitalik Buterin
Nocturne Labs takes a measured approach to comply with US regulations. Tchang states that they start with a two-step permissioned deposit process that filters out illicit deposits using tools like TRM and other data analytics providers. This allows them to gradually transition into a more permissionless approach in the future. In other news, Ethereum founder Vitalik Buterin revealed that he has not sold ETH for personal profit since 2018. He intends to use some of his assets in ETH and other cryptocurrencies sent to him for charity work and to support non-profit organizations.
Hot Take: Nocturne Labs Raises $6 Million to Enable Private Accounts on Ethereum
Nocturne Labs has successfully raised $6 million in seed funding to develop a privacy protocol that brings private accounts to Ethereum’s public blockchain. The funding round, led by Bain Capital Crypto and Polychain Capital, includes participation from notable figures like Vitalik Buterin. This investment will support the deployment and ongoing development of the protocol, which aims to enable anonymous transactions within the Ethereum ecosystem. With the launch expected in November, Nocturne Labs plans to utilize innovative blockchain technologies like zero-knowledge proof and account abstractions. By prioritizing user privacy, Nocturne Labs seeks to provide a secure and confidential experience for individuals using crypto on Ethereum.
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