Subspace Labs raises $33 million funding to further web3 efforts

Subspace Labs raises $33 million funding to further web3 efforts

Subspace Labs, a distributed research and development company behind the Subspace Network, established in 2018, has recently announced that it has raised funding of $32.9 million for further developing complete new blockchains, which aims to balance security, scalability and sustainability, said Jeremiah Wagstaff, its co-founder and CEO in an interview.

The crypto space is gaining traction; that is why some of the most well-known blockchains are struggling to meet user demand. New projects are planning to tackle challenges like hefty gas fees, high energy use, and low transaction output that are troubling some major blockchain networks.

Mr. Wagstaff said that third generation blockchains like Solana, Cardano and even the refurbished Ethereum (known as ETH 2.0) are more ascendable than the older counterparts and will still make decentralization tradeoffs and security intrinsic to the proof-of-stake system.

Subspace, which according to Wagstaff, is the first fourth-generation blockchain, is exclusive in that it gages linearly as the number of nodes on the Subspace network surges, the cost of doing a transaction decrease.

However, the proof-of-stake is more eco-friendly than the proof-of-work. Wagstaff claims it is not fair or permissionless as it spreads inequality as those who now hold vast amounts of tokens earn higher rewards for mining, associating proof-of-stake protocols to plutocracies.

Instead of gratifying users based on a “one coin, one vote” system, like in proof-of-stake, Subspace uses a so-called protocol known as proof-of-capacity, which has users using their hard drive disk space for validating transactions.

Although the proof-of-capacity systems have been generally proven to use less energy than the proof-of-work systems, there have been worries about the e-waste costs associated with the networks and their effect on global supply chains.

However, experiments of proof-of-capacity have been considered before, most remarkably by Bram Cohen, Co-founder of Chia blockchain. Wagstaff claims that the one disk, one vote system of Subspace is more efficient and offers other benefits like file storage.

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