Hemi Labs, a start-up co-founded by former Bitcoin core developer Jeff Garzick, has successfully raised $15 million in its initial funding round. The investment was led by notable backers including Binance Labs, Breyer Capital, and Big Brain Holdings.
According to a Fortune report, Hemi Labs aims to create a new “supernetwork” that integrates the capabilities of both Bitcoin and Ethereum, filling what they see as a “long-standing gap in blockchain technology.”
Ethereum-Compatible Technology For Bitcoin?
Launched in July at this year’s Bitcoin Conference in Nashville, Hemi Labs introduced a technology that operates within the Ethereum Virtual Machine (EVM). This development will enable Ethereum’s smart contracts to directly interact with Bitcoin, an advancement that could allegedly transform how these two major cryptocurrencies communicate and function together.
Co-founder Max Sanchez, who previously participated in Garzick’s incubator program at Bloq, expressed that the funding will be utilized to expand Hemi’s engineering team and enhance its Bitcoin interoperability features.
Additionally, the company plans to provide developers with advanced customization options, along with incentives, grants, and initiatives to boost community engagement. While Sanchez refrained from disclosing the company’s valuation, he emphasized the potential of Hemi’s technology.
Sanchez’s background includes co-founding VeriBlock, where he developed a consensus mechanism known as Proof-of-Proof. Although VeriBlock did not achieve its intended success, Sanchez has integrated aspects of that technology into Hemi Labs.
Hemi Labs’ Vision For Web3
According to the report, Hemi Labs has generated considerable interest from web developers and computer scientists, but Sanchez is optimistic that its appeal will broaden to a wider audience. He envisions Hemi as “an ideal platform” for anyone interested in decentralized finance (DeFi) utilizing Bitcoin and Ethereum assets.
Interestingly, Hemi Labs is not the first venture to attempt to bridge the Bitcoin-Ethereum divide. Earlier this year, start-ups ByBit Web3 and Ignition announced a partnership to create a DeFi solution integrating the two cryptocurrencies.
However, Sanchez believes Hemi stands apart due to its use of “newer technology that transcends the boundaries of the individual blockchain communities.”
The funding round also attracted investments from a diverse group of backers, including Crypto.com, Web3 Ventures, Hyperchain Capital, Alchemy, and SALT Fund, among others. Ted Breyer, an early investor in social media Facebook and Spotify, commented on Hemi Labs’ potential, stating:
The Hemi team has a clear and compelling vision for unlocking the programmability, portability, and potential of Web3. With a distinguished track record, they are uniquely positioned to deliver.
At the time of writing, the largest cryptocurrency on the market, Bitcoin, is trading at $59,650, down over 1% after hitting a three-week high of $61,200 on Tuesday. Ethereum, on the other hand, is trading at $2,300, also down over 2% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingView.com
