Bart Hillerich

In the rapidly evolving world of blockchain gaming and decentralized applications, the significance of a reliable and robust infrastructure cannot be overemphasized. As developers aim to scale, enhance efficiency, and safeguard users, integrating powerful tools becomes paramount.&nbsp;



In this context, we delve into how Altura, a prominent platform for blockchain game developers, revolutionized its Web3 gaming ecosystem by collaborating with <a href="https://www.quicknode.com/?utm_term=quicknode&amp;utm_campaign=Brand&amp;utm_source=google&amp;utm_medium=cpc&amp;hsa_acc=1365030395&amp;hsa_cam=20244916698&amp;hsa_grp=150357053496&amp;hsa_ad=617804978340&amp;hsa_src=g&amp;hsa_tgt=kwd-972169075647&amp;hsa_kw=quicknode&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad=1&amp;gclid=Cj0KCQjw9fqnBhDSARIsAHlcQYQ_QWHvemzpk-zLhXhd_AM1LGuv1Ii7P7dk99NkqGPO-Xu-CcV7qV8aArSyEALw_wcB" target="_blank" rel="noreferrer noopener">QuickNode</a>. Furthermore, we&#8217;ll explore how DappRadar, the global dApp store, amplifies its real-time analytics capabilities with QuickNode&#8217;s robust infrastructure, ensuring both operational excellence and user safety in the face of prevalent scams.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading">Altura</h2>



<figure class="wp-block-image"><img loading="lazy" decoding="async" width="1200" height="630" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png" alt="Altura integrates QuickNode to get more reliable blockchain infrastructure performance." class="wp-image-67704" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=1200 1200w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image-1.png?w=80 80w" sizes="(max-width: 1200px) 100vw, 1200px" /><figcaption class="wp-element-caption">Source: <a href="https://www.alturanft.com/ogimg.png" target="_blank" rel="noreferrer noopener">Altura</a></figcaption></figure>



<a href="https://www.alturanft.com/" target="_blank" rel="noreferrer noopener">Altura</a>, a platform assisting blockchain game developers to integrate Web3 into their games, partnered with QuickNode to fortify its Web3 gaming ecosystem. Altura’s partnership with QuickNode has addressed past infrastructure inconsistencies, enhanced operational efficiency, and empowered them to tap into historical blockchain data using Archival Nodes.



<h3 class="wp-block-heading">Shaking off reliability issues</h3>



Before connecting with QuickNode, Altura struggled with its previous Web3 providers, experiencing frequent downtimes and shaky support. After a couple of misses with other providers, they turned to QuickNode because of its reputation for being reliable. Making the switch, Altura found what they were missing: reliability and a smooth ride.



With QuickNode on board, Altura dove deep into the available. They started using the Archival Node, a treasure chest of old blockchain data. Then came <a href="https://www.quicknode.com/quickalerts" target="_blank" rel="noreferrer noopener">QuickAlerts</a>, a nifty tool letting developers keep tabs on stuff like when NFTs are sold, resulting in an augmented marketplace indexer and easier new chain integration. Thanks to these tools, Altura&#8217;s platform became more efficient and user-friendly. QuickNode gave them the magic touch to level up in the blockchain gaming scene!



<blockquote class="wp-block-quote">
“I can attest to both the user-friendly nature and the innovative techniques employed by QuickNode. However, the crux of any product’s effectiveness lies in its reliability. In my experience, among all the available products in the market, QuickNode is the singular entity that satisfactorily meets this essential requirement.”
<cite>Abdullah Rangoonwala, Head of Engineering at Altura</cite></blockquote>



<h2 class="wp-block-heading">DappRadar</h2>



<figure class="wp-block-image is-resized"><img loading="lazy" decoding="async" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png" alt="DappRadar leverages QuickNode to protect users from blockchain scams." class="wp-image-67703" style="width:840px;height:473px" width="840" height="473" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/09/image.png?w=80 80w" sizes="(max-width: 840px) 100vw, 840px" /><figcaption class="wp-element-caption">Source: <a href="https://dappradar.com/">DappRadar</a></figcaption></figure>



<a href="https://dappradar.com/" target="_blank" rel="noreferrer noopener">DappRadar</a> is the world’s dApp (decentralized application) store, serving as the starting point for millions of users as they initiate the discovery of Dapps across all product categories and blockchains. QuickNode’s robust infrastructure offers raw blockchain data, with instant access to archive nodes, tracking patterns, and other features; it provides the foundation needed for DappRadar’s real-time analytics tools to function and scale its data analytics capabilities across multiple chains.



<h3 class="wp-block-heading">Shining a light on bad actors</h3>



In an industry where scams are prevalent, maintaining user safety is essential for a platform like DappRadar that aggregates dApps globally. Every day, hundreds of smart contracts pop up; many are not trustworthy. By leveraging Quicknode, DappRadar taps into over 300,000 listed smart contracts, alerting its users if a deal is too good to be true. Thanks to this, developers can help users avoid sneaky scams lurking in the shadows and DappRadar can much easier maintain its reputation as a safe, trustworthy solution for locating dApps.



<blockquote class="wp-block-quote">
“When we started DappRadar two years ago, we chose QuickNode instead of running our own node. Saved us time and money!”
<cite>Skirmantas Januškas, Co-founder of DappRadar</cite></blockquote>



<h2 class="wp-block-heading">QuickNode&#8217;s crucial role in shaping the future of Web3</h2>



In the blockchain sphere, having a resilient and efficient infrastructure is not just about enhancing operational capacities; it&#8217;s about ensuring user safety and providing unparalleled experiences.&nbsp;



Altura&#8217;s transformation and DappRadar&#8217;s unwavering commitment to user safety are testaments to the indispensable role that QuickNode plays in fortifying the Web3 domain. By addressing the intrinsic needs of the decentralized world, QuickNode is setting a gold standard, helping renowned Web3 applications navigate challenges and scale new heights.



To get started implementing QuickNode into your endeavors, check out <a href="https://www.quicknode.com/?utm_term=quicknode&amp;utm_campaign=Brand&amp;utm_source=google&amp;utm_medium=cpc&amp;hsa_acc=1365030395&amp;hsa_cam=20244916698&amp;hsa_grp=150357053496&amp;hsa_ad=617931270212&amp;hsa_src=g&amp;hsa_tgt=kwd-972169075647&amp;hsa_kw=quicknode&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad=1&amp;gclid=CjwKCAjwo9unBhBTEiwAipC1181Cbw-SH0WRLDWk__hpugprn1pVnPeIQlvP32ezTSdY1dVqzyHiyxoC1YUQAvD_BwE" target="_blank" rel="noreferrer noopener">their website</a>. To stay on top of their latest updates, be sure to follow the team on <a href="https://twitter.com/quicknode" target="_blank" rel="noreferrer noopener">X</a> and join their <a href="https://discord.gg/quicknode" target="_blank" rel="noreferrer noopener">Discord server</a>.



This content is sponsored by <a href="https://www.quicknode.com/?utm_term=quicknode&amp;utm_campaign=Brand&amp;utm_source=google&amp;utm_medium=cpc&amp;hsa_acc=1365030395&amp;hsa_cam=20244916698&amp;hsa_grp=150357053496&amp;hsa_ad=617931270212&amp;hsa_src=g&amp;hsa_tgt=kwd-972169075647&amp;hsa_kw=quicknode&amp;hsa_mt=e&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad=1&amp;gclid=CjwKCAjwo9unBhBTEiwAipC1181Cbw-SH0WRLDWk__hpugprn1pVnPeIQlvP32ezTSdY1dVqzyHiyxoC1YUQAvD_BwE" target="_blank" rel="noreferrer noopener">QuickNode</a>.



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The secret sauce behind Web3’s premier applications

Shalini Nagarajan

EigenLayer, a restaking protocol that aims to help scale Ethereum, has raised $50 million in a Series A round led by Blockchain Capital.



Other investors in the round include Electric Capital, Polychain Capital, Hack VC, Finality Capital and Coinbase Ventures.&nbsp;



The protocol’s fundraising round is noteworthy given that venture capital funding for crypto startups <a href="https://blockworks.co/news/funding-wrap-venture-funding-down-but-not-out">slowed</a> significantly during the crypto bear market. It previously raised a $14.5 million seed round last year led by Polychain Capital and Ethereal Ventures.&nbsp;



EigenLayer seeks to extend crypto-economic security to applications being built on the Ethereum network through restaking. Fragmented security is seen as one of the key issues within the blockchain ecosystem, meaning applications on Ethereum are responsible for generating their own trust mechanisms.&nbsp;



Founder Sreeram Kannan, who has been an associate professor of Artificial Intelligence and blockchain applications at the University of Washington for more than 8 years, said the mission of EigenLabs is to build protocols and infrastructure that boosts open innovation.



“One of the central bottlenecks to innovation in today’s crypto ecosystem is the requirement for projects to bootstrap trust, or crypto-economic security,” he said in a <a href="https://twitter.com/eigenlayer/status/1640755205443829760" target="_blank" rel="noreferrer noopener">statement</a>. By contrast, EigenLayer would allow developers to become consumers of trust generated by staked ether, according to its <a href="https://docs.eigenlayer.xyz/whitepaper.pdf" target="_blank" rel="noreferrer noopener">white paper</a>.



Kannan told <a href="https://fortune.com/crypto/2023/03/28/eigenlabs-eigenlayer-50m-funding-round-blockchain-capital-infrastructure/" target="_blank" rel="noreferrer noopener">Fortune</a> that blockchain infrastructure is currently blocked from supporting big ideas like Uber or social networks because it’s just not ready yet. And EigenLayer could be a fix for that.



Speaking to Blockworks’ <a href="https://youtu.be/O-uzBSevklk?t=1158" target="_blank" rel="noreferrer noopener">0xResearch podcast</a> in January, Kannan said that EigenLayer will allow staked ether to be used in a variety of cross-chain contexts.



“You can think of EigenLayer as enhancing the expressivity and flexibility of what the Ethereum trust network can do,” he said.



The protocol’s process of restaking, in which Ethereum’s security is redirected to alternative middleware, allows blockchain services to rely on itself for security rather than on the value of their own tokens. It essentially gives users an opt-in function that grants EigenLayer enforcement rights on their staked ETH, which can then be applied to other applications.



Viktor Bunin, a protocol specialist at Coinbase and an angel investor who participated in EigenLayer’s seed round, <a href="https://viktorbunin.medium.com/investing-in-eigenlayer-1020608cd69f" target="_blank" rel="noreferrer noopener">wrote</a> about why he is particularly interested in the startup.



“Sreeram and team are tackling an incredibly difficult problem, but one that has the potential for an enormous amount of impact,” he said. “There’s tens of billions of dollars of staked ETH. In the future there will be trillions. Making this capital useful will be a journey that can place crypto as an industry on a better path.”



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EigenLayer Lines Up $50M In Bear Market Fundraise

Bessie Liu

Crypto infrastructure companies scored significant funding this week.&nbsp;



Among them was Blockstream, which landed $125 million in a convertible note from London-based Kingsway Capital, with participation from bitcoin-focused Fulgur Ventures.&nbsp;The <a href="https://blockworks.co/news/fundraising-wrap-over-800m-in-investments-poured-into-crypto-this-week">overall infrastructure trend isn&#8217;t necessarily new</a>, but such efforts do appear to be escalating. 



The latest capital haul <a href="https://blockworks.co/news/bitcoin-infrastructure-firm-blockstream-reaches-unicorn-status-with-3-2b-valuation">follows the firm’s Series B in August 2021</a>, when the company procured $210 million from investors to expand mining facilities and acquire Spondoolies, a crypto mining gear startup.



Erik Svenson, Blockstream’s president and chief financial officer, said in a statement that the fundraise allows the company to “accelerate” its year-over-year revenue growth and “build infrastructure for the future Bitcoin economy.”



Added Svenson: “We remain focused on reducing risk for institutional bitcoin miners and enabling enterprise users to build high-value use cases on the most secure, robust, and scalable blockchain in the world — Bitcoin.” 



Another infrastructure company that corralled funding this week was QuickNode. The end-to-end development platform <a href="https://www.theblock.co/post/205028/quicknode-reaches-800-million-valuation-in-series-b-round" target="_blank" rel="noreferrer noopener">closed</a> a $60 million Series B led by 10T holdings. Other investors who participated in the round include Tiger Global, Seven Seven Six, Protocol Labs and QED.&nbsp;



The latest funding brings QuickNode’s total valuation to $800 million, and will be used to grow the company’s international presence.



“The long-term health and success of Web3 are dependent on scalability, accessibility, and interoperability,” ​​said Alexis Ohanian, founder of Seven Seven Six, which also invested in the company’s seed round.



”[QuickNode’s] foundational technology and platform is building not only to meet the current needs of top Web3-native companies and flagship global brands but also those of the future decentralized web,” he said.



In a smaller fundraising effort, Tholos, an MPC wallet platform — similar to Fireblocks — landed pre-seed funding of $1.5 million.



The round was led by four crypto-native venture capitalists, including North Island Ventures, Lattice, Dispersion Capital and Chainforest. A handful of angel investors also participated, Abraham Litwin-Logan, the founder of Tholos, told Blockworks.



Tholos’ team currently consists of the co-founders, a full stack engineer, a mobile engineer and the head of product and design, as well as two part-time senior back-end engineers. But additional hiring, enabled by the cash infusion, is already under way, according to the team.



“On the cryptography side of things — we’ve partnered with a multi-party computation cryptography team in Israel, which is made up of three cryptographers,” Litwin-Logan said, adding that the remaining cash would be used for product development and testing before it goes onto the market.



Other notable fundraises this week include:



<ul>
<li>Spatial Labs <a href="https://www.theblock.co/post/205813/spatial-labs-iddris-sandu-seed-funding" target="_blank" rel="noreferrer noopener">lands</a> $10 million from Blockchain Capital, with participation from Marcy Venture Partners, a firm co-founded by Jay-Z.&nbsp;</li>



<li>Gemba, a software developer for virtual reality training, secures $18 million from Parkway Venture Capital, bringing its valuation to $60 million.&nbsp;</li>



<li>London-based blockchain infrastructure company Calimero Network closes an $8.5 million seed round led by Khosla Ventures, Lyrik Ventures and NEAR Foundation.</li>
</ul>



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Funding Roundup: Crypto Infrastructure All the Rage

<div id="highlights-block_632d78358acb9" class="highlights">
 <ul>
 <li>Low bitcoin prices and rising energy costs have hurt mining companies</li>
 <li>Daily revenue for bitcoin miners has fallen 70% since the peak of November 2021, Arcana Research data showed</li>
 </ul>
 
</div>



Crypto mining data center operator Compute North filed for bankruptcy in Texas, marking the latest victim of the bear market environment marred by a steep drop in bitcoin prices and rising power costs.



The <a href="https://www.scribd.com/document/596161089/178148591946#from_embed" target="_blank" rel="noreferrer noopener">petition</a> was filed on Thursday in the Southern District of Texas US bankruptcy court.



According to the filing, the Minnesota-based firm owes as much as $500 million to a minimum of 200 creditors. Its assets are worth between $100 million to $500 million.&nbsp;



Under its estimation of available funds, Compute North stated that it would have no capital to distribute to unsecured creditors after payment of administrative expenses.&nbsp;



Compute North began in 2017 as a crypto mining firm, but changed its focus to providing co-location hosting services in 2018.&nbsp; In March, it grew to 100 employees and in April, it launched a 300-megawatt data center in Granbury, Texas, its website shows.



The firm last raised <a href="https://www.crunchbase.com/organization/compute-north" target="_blank" rel="noreferrer noopener">$385 million</a> in debt financing in February, according to Crunchbase data. Mercuria, National Grid Partners and Generate Capital are among its investors.&nbsp;



Faltering bitcoin prices and increasing power costs have hurt crypto miners’ profitability, with many <a href="https://cms.blockworks.co/the-days-of-lucrative-bitcoin-mining-at-home-are-over/" target="_blank" rel="noreferrer noopener">at-home miners</a> who once minted money from their own garages finding they’re now struggling.&nbsp;



<a href="https://arcane.no/research/bitcoin-mining-profitability-falls-to-2020-levels?utm_source=substack&amp;utm_medium=email" target="_blank" rel="noreferrer noopener">Arcane Research</a> noted that daily revenue for bitcoin miners fell over 10% in the last week, generating $17.9 million per day — the lowest level since November 2020. That’s down from revenues of $62 million a day at the peak of the crypto bull market in November 2021.



Delays caused by Compute North’s energy provider prevented one of its biggest clients, Marathon Digital, from activating its mining machines for months, earlier this year. Marathon held about <a href="https://ir.marathondh.com/news-events/press-releases/detail/1292/marathon-digital-holdings-reports-second-quarter-2022" target="_blank" rel="noreferrer noopener">40,000 mining machines</a> in the firm’s West Texas facility, which had a 280-megawatt bitcoin mining facility.



Compute North and Marathon Digital didn’t return Blockworks’ request for comment by press time.



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Compute North’s Business Goes South

Ben Strack

<div id="highlights-block_63039df5834c1" class="highlights">
 <ul>
 <li>“The interconnectivity that [the metaverse] enables will likely have a transformative impact across industries,” fund co-manager says</li>
 <li>Invesco launched two crypto-related ETFs in the US last October</li>
 </ul>
 
</div>



Asset management giant Invesco has launched a metaverse fund as it sees a particularly large opportunity in companies developing the infrastructure required for the space to reach its true potential.



The actively managed fund will invest in companies of all sizes across the US, Asia and Europe and will be available to investors in 14 European countries.



Tony Roberts and James McDermottroe, members of Invesco’s UK-based Asia and emerging markets equities team, will co-manage the fund, the firm revealed Monday.&nbsp;



Roberts cited <a href="https://www.pwc.com/id/en/media-centre/press-release/2020/english/virtual-and-augmented-reality-could-deliver-a-p1-4trillion-boost.html" target="_blank" rel="noreferrer noopener">estimates from PwC</a> in 2020 that virtual and augmented reality could deliver a £1.4 trillion boost to the global economy by 2030.



“While the metaverse’s applications to entertainment are increasingly well-understood, the interconnectivity that it enables will likely have a transformative impact across industries as diverse as healthcare, logistics, education and sport,” Roberts said in a statement. “We will seek to capitalize on these opportunities through a highly selective, valuation-conscious approach.”&nbsp;&nbsp;&nbsp;



The fund focuses on seven areas, one of which is blockchain. It also is set to invest in devices that offer access to the metaverse, tools allowing interoperability and services that will facilitate the digitization of the real economy.



It is available to investors in the United Kingdom, Germany, France, Netherlands, Finland, Czech, Sweden, Austria, Belgium, Italy, Luxembourg, Norway, Slovakia and Spain, a spokesperson told Blockworks.



<h3 class="wp-block-heading">Invesco funds with exposure to blockchain</h3>



Invesco managed roughly $1.4 trillion in assets as of June 30. The fund group partnered with Elwood Asset Management in March 2019 <a href="https://www.lseg.com/markets-products-and-services/our-markets/london-stock-exchange/equities-markets/raising-equity-finance/market-open-ceremony/london-stock-exchange-welcomes-invesco-and-elwood-asset-management-celebrating-launch-invesco-elwood-global-blockchain-ucits-etf" target="_blank" rel="noreferrer noopener">to launch a blockchain ETF</a> on the London Stock Exchange.  



The company revealed in September 2021 that it was <a href="https://cms.blockworks.co/invesco-and-galaxy-team-to-build-suite-of-crypto-etfs/" target="_blank" rel="noreferrer noopener">teaming up with Galaxy Digital</a> to create a suite of physically backed digital assets ETFs. It brought to market its Invesco Alerian Galaxy Crypto Economy ETF (SATO) and its Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF the following month. The funds have less than $10 million in assets under management combined. 



Rene Reyna, the firm’s head of thematic and specialty ETF strategy, told Blockworks in an email earlier this month that digital assets remains an emerging investment theme requiring education for many investors.&nbsp;



“We are committed to the digital asset space and will continue to monitor investor demand and product development opportunities,” she said.



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Invesco Offers Investors Exposure to Metaverse

<div id="highlights-block_62cd2335d4261" class="highlights">
 <ul>
 <li>The $2 billion target valuation is said to be much higher than Mysten’s Series A round, according to The Information</li>
 <li>But that level could change if equity investors get additional rights</li>
 </ul>
 
</div>



<a href="https://cms.blockworks.co/tag/mysten-labs/" target="_blank" rel="noreferrer noopener">Mysten Labs</a>, a startup focused on Web3 and blockchain infrastructure, is reportedly in talks to raise a Series B round at a $2 billion valuation.



<a href="https://www.theinformation.com/articles/startup-founded-by-former-meta-crypto-execs-seeks-2-billion-valuation" target="_blank" rel="noreferrer noopener">The Information</a> reported on Monday that the startup is currently in discussions to raise at least $200 million in the round led by FTX Ventures, the venture capital arm of <a href="https://cms.blockworks.co/tag/FTX/" target="_blank" rel="noreferrer noopener">cryptocurrency exchange FTX</a>. It’s already said to have raised $140 million by investors so far.



Mysten’s $2 billion target valuation is much higher than its previous round, two people familiar with the matter told the outlet. This is noteworthy given that some companies have recently been grappling with <a href="https://cms.blockworks.co/tag/firing/" target="_blank" rel="noreferrer noopener">layoffs</a>, down rounds and uncertainty. 



But that target could reportedly change depending on whether equity investors secure added rights to buy tokens compatible with Mysten’s blockchains, and the strike price to exercise those options.



The startup raised $36 million in a Series A fundraising round led by <a href="https://a16z.com/2021/12/06/investing-in-mysten-labs/" target="_blank" rel="noreferrer noopener">Andreesen Horowitz</a> in December, according to a <a href="https://medium.com/mysten-labs/introducing-mysten-labs-building-foundational-infra-for-web3-7e5ec3df1ccb" target="_blank" rel="noreferrer noopener">blog</a> posted by the firm, but the valuation of that round isn’t clear. Other backers include Lightspeed, Coinbase Ventures, Electric Capital, Standard Crypto, NFX and Slow Ventures.



Founded in 2021, Mysten is focused on building blockchain infrastructure to enable decentralized applications, including crypto gaming. Its co-founders — Evan Chang, Sam Blackshear, Adeniyi Abiodun and George Danezis — are former employees at Novi Research, Meta’s cryptocurrency research and development team, where they helped develop the <a href="https://techmonitor.ai/technology/emerging-technology/facebook-diem-stablecoin-cryptocurrency" target="_blank" rel="noreferrer noopener">Diem stablecoin</a>. 



<a href="https://cms.blockworks.co/four-former-facebook-developers-launch-web3-startup/" target="_blank" rel="noreferrer noopener">Blockworks reported</a> in February that the one-time Big Tech personnel felt restricted at their previous employer and wanted the liberty to exercise their own vision.



Mysten didn’t return Blockworks’ request for comment by press time.



Investor anxiety within the crypto industry has ballooned as a result of plunging asset prices and the recent insolvencies of <a href="https://cms.blockworks.co/3ac-files-for-bankruptcy-as-co-founders-location-unknown/" target="_blank" rel="noreferrer noopener">Three Arrows Capital</a> and <a href="https://cms.blockworks.co/voyager-files-for-bankruptcy-days-after-freezing-withdrawals/" target="_blank" rel="noreferrer noopener">Voyager Digital</a>. Despite this outward backdrop of fear, <a href="https://cms.blockworks.co/funding-roundup-despite-bear-market-money-is-still-pouring-into-crypto/" target="_blank" rel="noreferrer noopener">money is still pouring</a> into blockchain-based companies as investors seek out opportunities to capitalize on the sector-wide downturn.&nbsp;



If Mysten were to reach its fundraising goal this time around, it would suggest firm belief in not just the startup’s potential, but a turnaround for the overall crypto industry.



“In today&#8217;s bear market, you&#8217;re seeing some of the worst-case scenarios,” Daniel Tal, project lead at ICHI, told Blockworks in an interview. “From a positive side, this is the best time to build.”



“The bear market exposes these holes that we have in some of our protocols. And now we see different kinds of communities building to cover those holes and create protocols that are much more resilient,” he added.



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Startup From Ex-Meta Devs Seek $2B Valuation: Report

Garrett Harper

On today&#8217;s episode of &#8220;<a href="https://www.youtube.com/watch?v=YL0zMCth_Lw&amp;ab_channel=BlockworksCrypto">Empire</a>,&#8221; Joe Lallouz, head of Coinbase Cloud, joins Jason and Santiago to discuss how Coinbase Cloud is building the AWS of crypto.



Coinbase Cloud is building blockchain infrastructure and APIs that abstract the complexities of staking, data access, deployment and more. Joe explains the challenges of building in crypto, how Coinbase Cloud is taking on this challenge, and why developer tooling is critical for rapid innovation.



Joe Lallouz, Jason and Santiago then discuss the importance of crypto&#8217;s low switching costs, proof-of-stake systems, Lido&#8217;s staking dominance, and Coinbase&#8217;s approach to MEV. Blockchain infrastructure isn&#8217;t the hot topic on crypto Twitter, but it&#8217;s the base layer of the entire ecosystem and will soon be a primary talking point. Don&#8217;t miss this fantastic conversation to stay ahead of the blockchain infrastructure narrative!



Plus, hear more on:



<ul><li>Crypto&#8217;s bundling and unbundling </li><li>Developer SDKs</li><li>Staking derivatives</li><li>And so much more!</li></ul>



Check out what they had to say in the video below.👇



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<h3 class="wp-block-heading">About the show</h3>



&#8220;Empire&#8221; is a twice-a-week show where we share the real crypto stories that aren’t heard elsewhere. On Mondays, Jason and Santiago Santos interview crypto industry movers and shakers to talk about their struggles, bold moves and tough decisions. Finish off the week with Friday&#8217;s weekly roundup episode that covers the top news and narratives of the week.



For any NPR or Guy Raz fans out there, you can think of &#8220;Empire&#8221; as a &#8220;How I Built This&#8221; for the bitcoin and crypto industry.



Subscribe to &#8220;Empire&#8221; today on&nbsp;<a href="https://podcasts.apple.com/us/podcast/empire/id1554930038" target="_blank" rel="noreferrer noopener">Apple</a>&nbsp;or&nbsp;<a href="https://open.spotify.com/show/4UTePv1CR3APdKOiosR3Iq" target="_blank" rel="noreferrer noopener">Spotify</a>. Watch episodes on&nbsp;<a href="https://www.youtube.com/channel/UCEOv-8wHvYC6mzsY2Gm5WcQ" target="_blank" rel="noreferrer noopener">YouTube</a>.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Podcast: Coinbase – the AWS of Crypto | Joe Lallouz

Casey Wagner

<div id="highlights-block_62050d46d5186" class="highlights">
 <ul>
 <li>Traditional financial institutions are interested in adopting crypto technology, and infrastructure providers are having a hard time keeping up</li>
 <li>Institutions like Vanguard and State Street are already using smart contracts for settlements</li>
 </ul>
 
</div>



According to enterprise technology infrastructure provider Symbiont, Wall Street is already leaning heavily into crypto technology, and the adoption is just beginning.



Symbiont, founded in 2013, launched its first enterprise blockchain product in 2019 with Vanguard. The product allows for smart contracts to take over data normalization for Vanguard’s passive index funds, allowing for orders to be executed autonomously.



<a href="https://www.symbiont.io/" target="_blank" rel="noreferrer noopener">Symbiont</a> currently manages about $2.3 billion of Vanguard&#8217;s passive indices value through that network, Mark Smith, CEO of Symbiont, said.



“We are looking at the technology as a toolkit to solve existing problems,” said Smith.&nbsp;



“From day one, it was really a question of how do we use this technology, in an appropriate way, for regulated entities to use it in a compliant fashion.”&nbsp;



The <a href="https://cms.blockworks.co/?s=infrastructure" target="_blank" rel="noreferrer noopener">infrastructure</a> provider also partners with other big names on Wall Street, including Citigroup, Nasdaq and Franklin Templeton Investments, and hopes for more collaboration opportunities in the future, Smith said.&nbsp;



In its most recent partnership, Symbiont worked with Vanguard and State Street to bring smart contracts to traditional financial transactions.&nbsp;



<blockquote class="wp-block-quote">“We&#8217;ve been at the tip of the spear from an enterprise blockchain perspective looking at blockchain smart contract technology as tools to solve real world problems in regulated financial markets,” said Smith.</blockquote>



Vanguard and State Street now use Assembly, Symbiont’s distributed ledger technology, in the margin calculation process for a live trade of a 30-day foreign exchange forward contract.



Vanguard, as a global asset manager, has many international funds, meaning Vanguard must have the available foreign currency on a certain date and time to settle those transactions. To hedge against the risk of the timeframe in which Vanguard needs to settle in a foreign currency, the firm creates forward contracts or swap contracts.



With Assembly, Vanguard and State Street, which act as the bank counterparty, can negotiate the transaction in a secure, encrypted manner through the blockchain, Smith said.



“The smart contract calculates exactly how much collateral you need based on an initial margin calculation that&#8217;s agreed upon amongst the two counterparties,” Smith said. “Historically, each side calculates margin on their own, and then they reconcile on an overnight basis or every two days manually to determine if both sides got the right margin variance calculation.”&nbsp;&nbsp;



Symbiont, and other companies in the infrastructure space, are having a hard time keeping up with growing interest in crypto technology from financial institutions, Smith said.



“Demand has actually outpaced expectation, not just from a Symbiont perspective, but I think if you look at the other market participants, they are all looking to expand,” he said. “Now the question becomes how do those entities onboard and become customers, that&#8217;s the next phase of how enterprise blockchain starts to really take hold in these applications.”



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.

Bringing Blockchain Infrastructure Tech to Wall Street

<div id="highlights-block_6108617aa864b" class="highlights">
 <ul>
 <li>$1.2 trillion infrastructure deal is financed in part through stronger tax enforcement around cryptocurrencies</li>
 <li>Senator Pat Toomey released a statement Monday saying he planned to offer an amendment to fix what he called “unworkable” text in the provision</li>
 </ul>
 
</div>



A portion of the $1.2 trillion infrastructure deal currently being considered by members of Congress “poses an imminent threat” to the US crypto industry, according to a dozen blockchain associations.



The deal, which includes $550 billion of investment in US infrastructure, is financed in part through strengthening tax enforcement around cryptocurrencies, according to a<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/28/fact-sheet-historic-bipartisan-infrastructure-deal/" target="_blank" rel="noreferrer noopener"> White House fact sheet</a>.



The federal government could raise $28 billion in the next 10 years through these taxes on crypto, <a href="https://www.nytimes.com/2021/07/30/us/politics/infrastructure-deal-cryptocurrency.html?campaign_id=4&amp;emc=edit_dk_20210802&amp;instance_id=36891&amp;nl=dealbook&amp;regi_id=61427258&amp;segment_id=65129&amp;te=1&amp;user_id=6ce77f080f3d64e6312881475ed3b6767f080f3d64e6312881475ed3b676" target="_blank" rel="noreferrer noopener">the New York Times reported</a>, according to an estimate by the Joint Committee on Taxation.



But a provision of the bill called “Enhancement of Information Reporting for Brokers and Digital Assets,” which offers guidance for traditional cryptocurrency exchanges to report to the IRS, puts new reporting requirements on individual players in the industry who have no way to comply, blockchain association leaders <a href="https://theblockchainassociation.org/12-regional-blockchain-associations-urge-congress-to-reject-infrastructure-bill-provision-targeting-crypto/">wrote in an open letter to Congress</a> on Friday.



“These individuals will be faced with impossible-to-fulfill reporting requirements that could thwart critical investments in our economy and communities within our states,” the letter states. “Smaller tech companies will inevitably begin to move overseas in order to avoid these unfeasible reporting requirements and continue operating.”



The portion of the bill could be interpreted to apply to people who don’t have access to the information required to be reported, Kristin Smith, executive director of the <a href="https://theblockchainassociation.org" target="_blank" rel="noreferrer noopener">Blockchain Association</a>, explained in a statement.&nbsp;



Senate Finance Chair Ron Wyden also shared concerns in several <a href="https://twitter.com/RonWyden/status/1421864061528993796" target="_blank" rel="noreferrer noopener">Twitter</a> posts on Sunday, noting that the provision to the infrastructure bill is “an attempt to apply brick and mortar rules to the internet” and does not understand how the technology works.



“This seems very rushed, and that hurried implementation could lead to unintended consequences,” Nick Du Cros, head of UK compliance and regulatory affairs at CoinShares, told Blockworks in an email. “Also, based on precedent from other countries, it is likely that some companies may respond to the legislation by simply moving all or part of their operations abroad.”



A spokesperson for Republican Sen. Rob Portman, one of the main authors of the infrastructure bill, has told media outlets that the legislative language does not force non-brokers, such as software developers and crypto miners, to comply with IRS reporting obligations.



Rather, the representative said, it clarifies that any person or entity acting as a broker by facilitating trades for clients and receiving cash must comply with standard information reporting.



<a href="https://www.nytimes.com/2021/08/02/us/politics/infrastructure-cryptocurrency.html" target="_blank" rel="noreferrer noopener">The New York Times reported</a> Monday morning that lawmakers revised the bill to further clarify the definition of a broker by removing language involving decentralized exchanges or peer-to-peer marketplaces. It instead characterizes brokers as anyone “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”



“Yes there were concessions but the latest language can still be interpreted by [the] Treasury to cover miners, lightning nodes, and the like,” Jerry Brito, executive director of <a href="https://www.coincenter.org" target="_blank" rel="noreferrer noopener">Coin Center</a>, said in a Twitter post. “If that&#8217;s not Congress&#8217;s intent, there are easy fixes they can adopt. There&#8217;s still time.”



Jake Chervinsky, general counsel of <a href="https://compound.finance" target="_blank" rel="noreferrer noopener">Compound Labs</a>, also took to Twitter on Monday to say the crypto provision was moving in the right direction, but that he still had concerns.



“We may reach a point today (or later this week) where our fate rests in the hands of a few Senators,” he wrote, “[and] we need to light up their phones with 1,000s of calls in support.”



US Senate Banking Committee Ranking Member Pat Toomey, a Republican from Pennsylvania, released a statement Monday saying he planned to offer an amendment to fix what he called “unworkable” text in the provision.



“Congress should not rush forward with this hastily-designed tax reporting regime for cryptocurrency, especially without a full understanding of the consequences,” he said. “By including an overly broad definition of broker, the current provision sweeps in non-financial intermediaries like miners, network validators, and other service providers.”



Though Majority Leader Chuck Schumer aims to get the bill through the chamber before the Senate leaves for a month-long recess on Aug. 9, the legislation would have to go through the House of Representatives, whose members don’t return from their break until Sept. 20.



“As this bill continues to move through the Senate, we urge senators to clarify that the language doesn’t capture non-custodial entities in the digital asset ecosystem,” Smith said. “We look forward to continuing this dialogue and sincerely thank Senate offices for their engagement and attention to this issue so far.”



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.