Bitfinity’s Bitcoin Scaling Network Valued at $130 Million

The blockchain project Bitfinity, which is developing a second-layer Bitcoin network based on Internet Computer, has raised $7 million in funding, reports The Block.

Investors include Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures.

They contributed funds through the purchase of the project’s tokens during two funding rounds. Following the second round, the startup was valued at $130 million, according to Bitfinity co-founder Max Chamberlin.

He stated that the team leverages one of Internet Computer’s key advantages—compatibility with the Ethereum Virtual Machine (EVM). This will enable the creation of DeFi applications on the project’s network with Bitcoin support.

“Bitfinity will handle not only Bitcoin inscriptions and BRC-20 tokens but also EVM assets,” Chamberlin believes.

The protocol is expected to provide significantly higher speeds for dapps and lower transaction costs compared to Ethereum.

Bitfinity developers plan to launch the mainnet in the coming months.

Ben Forman, managing partner at ParaFi Capital, noted that the project opens up the Bitcoin ecosystem “for new use cases and applications.”

Earlier in 2023, venture capitalists invested $10.7 billion in blockchain startups. This is 68% less than the previous year.