By
Temitope Olatunji
April 18th, 2024
Blocknative’s success can be measured through its 1500% growth in Annual Recurring Revenue and its expanding list of clients.
In its latest round of funding, the crypto startup Blocknative has managed to raise $12 million thus reflecting the confidence of stakeholders in its mempool surveillance tools.
As more and more crypto transactions take place on a daily basis, the number of related entities that try to make these transactions smoother and secure also emerge. Blocknative is one such solution that works as a data dredger for the cryptocurrency infrastructure. It monitors transactions in their waiting period or when they are part of the mempool data.
The funding was part of the company’s Series A investments with the leading investor being Ignition Fund. The remaining comprised Robot Ventures, Foundry Group and a few others.
What does Blocknative Startup Do?
Blocknative offers tools and tracking mechanisms to surveil the mempool or digital waiting rooms. The latter refers to the scenario wherein the crypto transactions are still in-flight and not validated. This helps with analyzing and predicting on-chain activity post-transaction. According to the CEO Matt Cutler, such monitoring would likely help projects assess gasoline fees while also detecting fraudsters/attackers and track crypto dealings still on the way which are not yet settled.
Blocknative’s primary goal is to bring transparency to access and understand the mempool complexity. They consider the digital waiting room as a mysterious dark forest that is full of unforeseen happenings and opponents. They want to build an infrastructure that will illuminate this data making it transparent and available to both builders and traders.
Blocknative’s solutions deployed across the Web3 ecosystem comprise the following:
- Restructuring real-time mempool statistics.
- Precise estimation of Ethereum gas price.
- Simulations to predict results and improve protocol security and trade.
- Quick Dapp support for all forms of hardware and software wallets.
- Real-time notifications for all transactions to the end-users.
Success and Relevance of the Startup in the Crypto World
Blocknative’s success can be measured through its 1500% growth in Annual Recurring Revenue and its growing list of clients that include famous projects like Compound, Yearn Finance, Zapper and Curve. With 40% of builders and 60% of traders making up their customer base, the startup is catering to all sides. A simulation platform to help detect how risky a particular transaction could be for the protocol is one of the interesting tools offered by Blocknative.
The testimonial of Altonomy, a New York-based crypto trading desk, confirms Blocknative’s valuable services. Ricky Li, Altonomy’s Head of Investments, also stressed how the in-flight transaction monitoring helps in the case of decentralized exchanges. Altonomy has also benefitted from the mempool intelligence that it received in the context of digital trading floors.
As a way forward, the CEO plans to increase Blocknative’s 20-person staff to 40 by the end of 2021. These new hirings would cover areas ranging from marketing, customer support and sales to C-suite and development. Blocknative is in the process of building a real-time core infrastructure that will not just sustain but also grow together with the whole crypto ecosystem.