By
Godfrey Benjamin
April 26th, 2024
The platform, which is currently in its testnet mode, is set to launch its token in June ahead of the mainnet launch scheduled for October.
TEN, an encryption-focused Ethereum Layer 2 (L2) network, otherwise, known as “The Encryption Network” has successfully secured $9 million in funding raised from top market investors.
Per a press release shared with Coinspeaker, the round which was done in three tranches had banking consortium R3 as the lead investor with participation from other notable investors including KuCoin, Republic Crypto, Big Brain Capital, Magnus Capital, and DWF Labs.
TEN Poised to Change the World of Decentralized Technology
As an L2 network, TEN deploys a model that allows it to maintain complete encryption – a feature not currently available amongst existing L2 solutions. TEN’s solution gives developers complete control of their smart contract allowing them to decide what part they would like to make public or keep private.
The platform maintains a balance between Optimistic-based L2s and ZK-Rollups. This would significantly broaden the scope of design possibilities, facilitating the development of a new era of on-chain games, Decentralized Finance (DeFi), real-world asset integration, and institutional applications.
With the new funds, the L2 network can now expand its 13-man workforce. Interestingly, about seven members of the team previously worked at R3, a consortium of 42 major banking establishments focused on exploring blockchain technology and real-life asset tokenization.
Meanwhile, the platform, which is currently in its testnet mode, is set to launch its token in June ahead of the mainnet launch scheduled for October. TEN chose to launch its native token before its mainnet launch to allow as much decentralization as possible since it is a governance token, according to co-founder Gavin Thomas.
Fundraising in the Ethereum L2 Ecosystem
Many consider Ethereum Layer 2 platforms as a major infrastructure arena to invest in as the industry evolves. Just a few days ago, Eclipse Labs, a pioneering force in Layer 2 blockchain development, announced the closure of a $50 million Series A funding round. Co-led by Placeholder and Hack VC, the funding round propelled Eclipse Labs into the limelight, bringing its total capital raised to $65 million.
However, the main objective of the funding round is to fuel the development of an innovative Ethereum Layer 2 solution leveraging the Solana Virtual Machine (SVM). According to Coingecko, the market value of Layer 2 chains stands at a staggering $32.6 billion, with Ethereum-based projects compromising more than half of the value. Notably, this valuation reflects the growing demand for scalable and cost-effective solutions within the Ethereum ecosystem.
Similarly, liquid restaking protocol Ether.Fi successfully closed a Series A funding round with $23 million from strategic investors like Bullish Capital, CoinFund, OKX Ventures, and Foresight Ventures, amongst others. With the new funds, the company is now positioned to compete with other restaking protocols in the Ethereum ecosystem like Puffer Finance, Prime Staked ETH, Renzo Protocol, and Eigenpie Platform to mention a few.
