Bitfinity Raises $7 Million in Funding for Bitcoin Layer 2 Network
Bitfinity, a blockchain project developing a Bitcoin Layer 2 network based on the Internet Computer (ICP) protocol, has raised a total of $7 million in funding. Investors in the project include Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures. The funding was divided into a seed round of approximately $1 million in 2021 and a growth round that closed last June. The second round brought Bitfinity’s valuation to $130 million. The announcement of the funding is intended to build anticipation leading up to the mainnet launch of the network, which is scheduled for later this month or early February.
What is Bitfinity?
Bitfinity is a Bitcoin scaling network built on the Internet Computer protocol. It offers compatibility with the Ethereum Virtual Machine (EVM), allowing Ethereum developers to build Bitcoin-enabled decentralized applications on Bitfinity. The Bitfinity EVM enables the deployment of EVM dApps with speeds 100 times faster than Ethereum and at a fraction of the cost. This opens up new possibilities for decentralized finance activities on the Bitcoin blockchain.
Bitfinity Ecosystem
Several dApps, including decentralized exchange Sonic, derivatives liquidity protocol Synthetix, and decentralized borrowing protocol Liquity, are either building on Bitfinity or planning to do so. The goal is to integrate Bitcoin into these applications and leverage Bitfinity’s high throughput, low fees, and Bitcoin-native support. Ben Forman from ParaFi Capital expressed belief in Bitfinity’s ability to open up novel use cases and applications within the Bitcoin ecosystem.
Future Plans for Bitfinity
The Bitfinity team currently consists of around 20 people but expects to grow to approximately 25 people after the mainnet launch. The focus will be on building and expanding the Bitfinity ecosystem. Additionally, Bitfinity plans to list its token on several exchanges following the mainnet launch.
Hot Take: Unlocking New Possibilities for Bitcoin with Bitfinity
Bitfinity’s $7 million funding round demonstrates growing interest in Bitcoin scaling solutions. By developing a Layer 2 network based on the Internet Computer protocol, Bitfinity aims to address the scalability and cost issues associated with Bitcoin transactions. With compatibility with the Ethereum Virtual Machine, Bitfinity opens up opportunities for Ethereum developers to build Bitcoin-enabled decentralized applications, paving the way for innovative use cases and increased adoption of Bitcoin in decentralized finance. As Bitfinity prepares to launch its mainnet, anticipation is building for the potential impact it could have on the Bitcoin ecosystem.
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