Coinbase, Paradigm Invest $15M In Startup Behind Disappearing Blockchain

Both Coinbase and Paradigm are known for being among the biggest players in the blockchain world. Interestingly, the two companies have just invested in a blockchain that, in one way or another, makes its blocks disappear. Apparently, it managed to raise at least $15 million.

Introducing The O(1) Labs

According to an announcement from Coda Protocol, the very first project of the startup called O(1) Labs got backing from multiple investors. The seed equity round was joined by the likes of Electric Capital and MetaStable, as well as Naval Ravikant, the co-founder of AngelList.

As of press time, the new line of investors included General Catalyst, Accomplice, Paradigm, and Coinbase Ventures. All of them were able to pump up a funding run of around $15 million, giving the startup a good run.

With Coda, the company has been successful so far in building a blockchain that enables users to participate in consensus. According to Evan Shapiro, its very own CEO, Coda is more than just payments. And what they are really excited about is the possibility of enabling new kinds of apps and/or games, all of which will be made possible by crypto with a lightweight blockchain. And unlike any of its contemporary, this one right here is both easier to develop and utilize.

A Succinct Blockchain

The O(1) team describes Coda as something that is a succinct blockchain. According to its whitepaper, this type of blockchain is simply a blockchain but with verification complexity and is essentially independent of chain length.

Apparently, to store a single copy of the Coda blockchain, it will only require 22 kb. Shapiro added that this is possible due to the fact that Coda utilizes zk-SNARKs when it comes to generating proof that most recent block – including all prior ones –are accurate. As soon as the proof is obtained, even the oldest smartphone will have the ability to easily and quickly verify the proof’s validity and store a copy of it locally.

Meanwhile, as far as the main nodes are concerned, they are expected to perform the much harder work in generating a proof. Apparently, it is the type of proof that no longer needs to hold onto older blocks, especially if they do want to. To put it simply, proof can be tossed away if it proves to be valid. In other words, in order to participate in the network, there is no need for terabytes of storage. This is pretty much opposite of Bitcoin.