Just came across this interesting news. Gelato, the smart contract automation network, has bagged an impressive $11 million in a Series A+ funding round, and guess what? Kraken’s new blockchain, Ink, is on board as a customer. This could be a game changer for the crypto and DeFi landscape.
With this fresh capital infusion, Gelato aims to bolster its platform to facilitate easier launches of blockchain applications for startups and enterprises. This round also saw participation from some heavyweights like Animoca Brands and IOSG Ventures, bringing their total funding to a cool $23 million. Hilmar Orth, one of the co-founders of Gelato, highlighted that this funding would significantly enhance user experience for both Web3 and Web2 companies looking to build scalable on-chain applications. He mentioned that “Gelato is committed to a future where every company operates on-chain,” but achieving that vision requires “scalable and affordable access to blockspace for millions of businesses.”
What caught my eye was their unique modular approach to blockchain scalability. Unlike traditional single-chain solutions that handle all functions within one network, Gelato separates these functions into different layers. This allows for greater flexibility and scalability. Their Rollup-as-a-Service (RaaS) focuses on layer 2 solutions where transactions are processed off-chain before being summarized onto the main Ethereum chain—this significantly reduces congestion on Ethereum.
Modular blockchains like Gelato enhance scalability by processing transactions off the main chain. Rollups bundle multiple transactions into a single batch, process them off-chain, and then submit a summarized record to the main chain. This can increase transaction throughput by up to 100 times compared to Ethereum.
A key aspect of this announcement is Kraken’s Ink blockchain—a new layer-2 solution built as an Ethereum rollup designed specifically for trading without intermediaries. By using Optimism's technology, Ink aims to contribute to the Optimism Superchain while enhancing Ethereum’s scalability.
Kraken’s move seems strategic; it positions them as a pivotal player in transitioning from centralized finance (CeFi) towards decentralized finance (DeFi). By providing users with an "on-chain" environment free from centralized exchanges, they’re essentially promoting direct interaction with blockchain applications.
Now let’s talk about token circulation and market support because that's where things get really interesting. Decentralized liquidity solutions like those offered by Gelato are crucial here. Their platform automates smart contract executions which play a significant role in managing liquidity effectively.
For instance, they automate rebalancing strategies for liquidity pools on platforms like Uniswap V3 ensuring optimal positioning while minimizing risks such as impermanent loss. Their services make it easier for users to engage with dApps without worrying about high gas fees—essentially boosting accessibility which can lead to increased token circulation.
In essence, Gelato's recent funding coupled with its collaboration with Kraken marks notable advancements in both blockchain technology and DeFi ecosystems. Their modular approach addresses many limitations faced by traditional single-chain systems; however it does raise questions about complexity versus usability.
As they continue innovating it's clear: we may be witnessing just the beginning stages of mainstream adoption within decentralized frameworks—but navigating through will require some learning curves along the way!
