DoubleZero, a communications startup, has raised $28 million at a $400 million valuation. The company aims to build a “new internet” to improve blockchain performance. Leading the funding round were venture capital firms Dragonfly and Multicoin Capital.
DoubleZero plans to create a global network of private fiber optic cables. These cables are designed to transmit blockchain data more efficiently than current public internet infrastructure. The company’s motto is “Increase Bandwidth, Reduce Latency” (IBRL).
DoubleZero is seen as important to Solana’s goal of processing one million transactions per second. The project plans to open its permissioned testnet to Solana validators and RPCs. It also has plans to include other blockchain networks.
Private communication lines are being used from several companies. These include Jump Crypto, RockawayX, Distributed Global, Latitude, and Teraswitch.
DoubleZero enhances blockchain communication speed
More contributors are being accepted. At Solana’s Breakpoint conference, Jump Crypto’s Firedancer team showed its fast Solana client. It was secretly running on DoubleZero infrastructure.
DoubleZero’s President, Austin Federa, was previously head of strategy at the Solana Foundation. Other co-founders, Andrew McConnell and Mateo Ward, manage Malbec Labs, the project’s core contributor company. DoubleZero will rely on independent communication businesses to use their underutilized infrastructure.
This strategy is similar to Wall Street’s “speed wars.” Trading firms invested in specialty fiber optic lines to execute orders milliseconds faster. DoubleZero’s data pipes are likened to having a more reliable and faster alternative to the public internet. “I think the Solana community has very resoundingly said, ‘We would like to exceed what’s possible on the public internet,'” Federa stated recently.
He said DoubleZero’s system is completely compatible with any blockchain. “We’re just getting to the point where blockchains are fast enough to make use of that.”
DoubleZero declined to comment further on the news.
Image Credits: Photo by Austin Distel on Unsplash
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