• Israeli Startup Chain Reaction Raises $70 Million to Develop Blockchain Chips
• Morgan Creek Digital Led the Fundraising Round
• The Firm Will Focus on Privacy Applications with Homomorphic Encryption
Israeli Startup Chain Reaction Raises $70 Million for Blockchain Chip Development
Chain Reaction, an Israeli startup, has raised $70 million in a Series C fundraising round to develop blockchain chips. The funding round was led by Morgan Creek Digital and other participants include KCK Capital, Jerusalem Venture Partners, Hanaco Ventures, Blue Run Ventures, Atreides Management, and Exor.
Mission of Chain Reaction
The Tel Aviv-based firm plans to launch its first products before the end of Q1 2023. Its mission is to create blockchain chips that will perform speedily and efficiently when carrying out operations known as ‘hashing’ or mining digital assets such as Bitcoin. Additionally, it will focus on developing processors for encryption technologies related to privacy such as homomorphic encryption which allows users to operate on data without decrypting the chip itself.
What is Homomorphic Encryption?
Homomorphic encryption is a type of data protection and privacy technique which involves end-to-end encryption throughout the entire data usage process. It has been gaining traction in both academic and theoretical circles due to its ability to protect user data from being accessed or misused by third parties.
Benefits of Chain Reaction’s Plan
By creating these blockchain chips with homomorphic encryption technology, users can be sure that their data is protected against malicious actors while still having access to it in order to carry out their activities securely and efficiently. Furthermore, this could also potentially reduce costs associated with processing power needed for mining activities since the newly created chips are designed specifically for this purpose.
Overall, Chain Reaction’s plan provides many benefits especially in terms of protecting user data while allowing them access necessary computing power for cryptocurrency mining activities at a more affordable cost than traditional methods. It remains to be seen just how successful the company’s endeavors prove but it certainly looks promising so far!