Coinbase is one of the largest cryptocurrency companies in existence. Interestingly, the company wants to use its stature to fix Bitcoin problems while supporting startups. Recent reports indicate that the firm participated in a funding round for StarkWave. According to a Medium post, StarkWave commercialises the STARK zero-knowledge proof system.
As Sludgefeed reports, Coinbase Ventures took part in a series A round for StarkWave which raised $30 million. Paradigm led the round, which saw participation by other firms and venture capitals. In particular, the proceedings will go towards facilitating development of both blockchain hardware and software.
Data compression and zero-knowledge proofs
The solutions utilise Zk-starks which is a solution for data compression and zero-knowledge proofs for safeguarding knowledge. The ultimate aim is to be able to “allow public blockchain networks to add this privacy functionality to their own networks.”
Meanwhile, Coinbase announced a $300 million fundraising round. Interestingly, the round puts a new valuation of Coinbase at $8 billion. This is against the fact that 2018 was so bad for cryptocurrencies, especially Bitcoin. This valuation is against a value of $1.6 billion just one year ago.
As CNBC reports, the Series E funding involved prominent venture capitals with the leadership of Tiger Global Management. Other participants included Andreessen Horowitz, Y Combinator Continuity, Wellington Management and Polychain.
Funding round to enable Coinbase become “Google of crypto”
According to the official announcement, Coinbase will use the funding to expand to other markets across the globe. Further, part of the $300 million will go towards helping the company to offer more crypto assets. In particular, this is in response to the increased demand and also the increased number of crypto assets on offer.
In addition, the crypto exchange will use the funds to actualize the previously announced plans for Coinbase Wallet. This is alongside the plans to actively support Circle’s stablecoin, the USD Coin. Lastly, the firm intends to add more features to its custody offering. This will enable Coinbase to support more institutional funds as the market expands. All this effort is to enable Coinbase become the “Google of crypto.”