There’s been a spike in the global adoption of blockchain technology, so several companies and organizations are now exploring the potential of the technology through many approaches. Hence, there’s a sudden growth in the systems, projects, and processes of blockchain and its applications.
One of the newest exploits on the blockchain is from an Israeli startup, Chain Reaction. The firm is set to develop blockchain chips through a $70 million fund.
Morgan Creek Digital led the just-completed fundraising round. Other participants include KCK Capital, Jerusalem Venture Partners, Hanaco Ventures, Blue Run Ventures, Atreides Management, and Exor.
Chain Reaction And Its Plan With Blockchain Chips
According to a report from Reuters, Chain Reaction has generated $70 million in a Series C fundraising round. The firm has now raised $115 million for creating blockchain chips while still in stealth mode. The Tel Aviv-based firm stated it would channel the funds into expanding its engineering team. It plans to launch the first products before the end of Q1 2023.
Speaking on the process, the co-founder and CEO of Chain Reaction, Alon Webman, discussed the route of operation. He mentioned they would start creating the blockchain chip Electrum within the first quarter.
According to him, the chip will perform speedily and efficiently carrying out operations known as ‘hashing’. Also, it will be employed in mining activities for digital assets such as Bitcoin mining.
Further, the CEO stated that the firm focused more on privacy applications. It plans to develop processors that will maintain the compute for encryption technologies related to privacy. Homomorphic encryption is top of the list, allowing users to operate on data since the chip is fully encrypted.
Notably, homomorphic encryption is a means to data protection and privacy that involves end-to-end encryption and the entire data usage process. This encryption type has gained some breakthroughs within the academic and theoretical world. However, there are still some challenges surrounding its practical application. Hence, Chain Reaction plans to tackle such roadblocks.
Benefits Of The New Blockchain Chips
Webman noted some restrictions when it comes to data encrypted into the cloud. Usually, operators must decrypt the data before analyzing or using previously encrypted data.
The CEO mentioned that governments and other top industries, including the defense sector, that could use cloud services are restricted from such due to security issues.
This is because malicious users could access the data once decrypted and read, change, or even steal it. But with an encrypted chip, such problems will cease as the operators won’t have to decrypt data before using it. Rather they would access the data while it’s still encrypted.
Chain Reaction is a technology-based firm that develops semiconductors and other related processes used in blockchain. Also, it operates within the scope of privacy hardware involving cryptographic processes.
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Source: https://bitcoinist.com/israeli-firm-secures-funding-for-blockchain-chips/