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The raised funds will be used to develop a decentralized Web3 messaging layer.
Web3 infrastructure startup WalletConnect has completed its Series A funding round with $11 million.
The funding round was led by Union Square Ventures and previous investor 1kx. It also saw participation from multiple companies including Coinbase Ventures, Zerion, and Semantic Ventures. Likewise, angel investors like Arjun Bhuptani, Mara Schmiedt, Anna Rose and Ajit Tripathi also participated in the round.
How WalletConnect Will Work
According to project founder Pedro Gomes, the funds will be used to develop a decentralized Web3 messaging layer. Recall that WalletConnect allows individuals to connect their crypto wallets to decentralized applications using QR codes. Now, the platform is designing two new protocols – a direct decentralized messaging layer and the other for push notifications.
Gomes believes that Web 3 needs a medium of communication between users to be deemed complete. He noted this is made possible by the existence of portable digital identities associated with unique wallet addresses. Using this, he said, ”we are able to create a shared messaging layer that isn’t owned by any particular wallet or application.”
With the messaging protocol, all WalletConnect users will be able to communicate directly with each other ensuring intra-wallet operability. Asides from this, the push notification protocol will ensure users remain abreast of every form of activity (off-chain and on-chain) on the blockchain.
Baby Steps and Giant Strides
Since bursting into the limelight in 2018, the firm has enjoyed relative success. Currently, it interlinks more than 100 different wallet types while its closest competitor integrates with only Coinbase Wallet for now. There are also integrations with more than 200 applications, including Twitter.
Gomes is not stopping there. Along with the decentralization, the founder intimated the company also has plans to launch its utility token. The token will be central to the cross-platform interoperability of the wallets.
Speaking on the token, Gomes said:
“The token launch is what will enable our infrastructure and other service providers to interoperate the messaging network with low latency and high availability.”
Its current code is mostly public information but with decentralization, every part of the code becomes open-source. Also, the company is looking to expand its current team to about 24 by the end of 2022.
WalletConnect has now raised total funding is $12.25 million, with $1.25 million coming from its seed round in April 2021.