Boba Network, a new system to improve the trading capacity of Ethereum, has raised $45 million from a wide range of investors, including cryptocurrency exchange giants Huobi, Crypto.com and BitMart. With this news, the altcoin price jumped.
Fundraising from giants, altcoin price skyrocketed
Defining itself as the ‘next generation optimistic aggregation scaling solution’, Boba Network not only improves Ethereum’s throughput by aggregating and sorting transactions from the main chain, but also It also overcomes the computational limitations of Blockchain.
In a sign of time, the funding round for advanced crypto installation even included support from Paris Hilton. Boba Network said Series A added $1.5 billion in value to the firm. As Cryptokoin.com reported, the altcoin price jumped from $1.42 to $1.81 during the day with the effect of the news.
What innovation does Boba Network offer?
Boba Network founder Alan Chiu says the inability of Ethereum smart contracts to deal with things like complex machine learning algorithms is a tradeoff that the Tier-1 network makes in favor of decentralization. Alan Chiu says in an interview:
All other efforts to scale Ethereum are focused on making it faster and cheaper. But we really wanted to focus on an additional dimension of scalability that has been neglected, and that is the computational limitations of Ethereum.
For example, someone who codes smart contracts in Ethereum’s programming language Solidity cannot include precise calculations for square roots, noted Alan Chiu, because blockchain’s ability to multiply computational complexity across a network of decentralized nodes and says it’s not designed to build consensus.
However, in the case of Ethereum overlay systems such as optimistic and zero-knowledge aggregations, calculations occur once and then cryptographic evidence is written back to layer-1 to prove that transactions were processed correctly. Alan Chiu states that Layer-2s have single-instance sequencers that act as block producers, explaining:
So we created Geth (a programming language for running Ethereum nodes), the Boba Network We set out to modify it so that smart contracts in . Suddenly, you can do off-chain machine learning and have the results come back to your smart contract atomically, i.e. in the same transaction, in the same block.
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