Layer raises $6M to make incorruptible foundations of the internet

New York, Oct. 07, 2024 (GLOBE NEWSWIRE) — A well-functioning internet is something we get to take for granted, thanks to the built-in security protocols carefully designed underneath. Without them, no data could be securely transferred from place to place at the incredible speed required to support the tech industry’s biggest products.

Today, the existing security protocols are struggling to protect users from even bigger threats, specifically the threats posed by large companies, cyberattackers, and AI that manipulate our online experience and erode trust. Blockchain technologies, like smart contracts, are a real hope to restore trust in the internet. However, smart contracts can only use a small amount of compute, putting limits on what they can support. To build great user experiences on a trustworthy Decentralized Web, we need a way to verify computations outside of blockchains, and make unstoppable applications that, once released, cannot be tampered with.

Recently founded startup Layer aims to extend the functionality of Ethereum by making the first developer tools that support full-stack decentralized applications with Web Assembly.

The company has raised a $6M seed round led by 1kx, with participation from Fabric Ventures, Arrington Capital, Stake Capital Group, and IOBC. Notable angels include Sreeram Kannan of EigenLayer, Rok Kopp and Mike Silagadze of Ether.fi, and Paul Taylor, formerly of BlackRock.

Layer founders: (L to R) Sam Cassatt, Jake Hartnell and Ethan Frey

Typically, smart contracts are small programs, specially packaged to be run by trustworthy “validators” on the blockchain. However, to power major software products, like web platforms, smartphone apps, and AI models, smart contracts would need to run thousands of lines of software at speeds you would find on a personal device or datacenter server. While many teams are optimizing the performance of blockchains like Ethereum, smart contracts alone are not capable of meeting the high computational demand of many applications.

Layer utilizes Web Assembly, which allows developers to write applications in languages like rust, that can run anywhere – even on your iPhone. Layer’s upcoming product, the “Layer SDK”, will allow developers to build new layers on top of Ethereum that run full-stack blockchain-based applications consisting of smart contracts, consensus mechanisms, UI, and verifiable off-chain services (AI agents, ZK provers, serverless functions, decentralized messaging servers, and more).

This means, for the first time, a software developer can launch sovereign, incorruptible versions of their software products without any sacrifice to the user experience. 

The founders, Sam Cassatt, Jake Hartnell, and Ethan Frey are three of the most seasoned builders in the blockchain space. Their combined experience has been instrumental in the proliferation of blockchain technologies like MetaMask wallets, decentralized autonomous organizations (DAOs), and cross-chain protocols.

By making the decision to band together, the founding team hopes to use all the lessons they have learned in blockchain to fulfill one of its biggest promises – to make all experiences on the internet inherently trustworthy, from the UI down to the functionality, through the shared security mechanisms of smart contracts.

“All three of us have realized that, while smart contracts have given us a foundational layer of trust, they aren’t enough to support a full decentralized version of the Internet,” Sam Cassatt, Co-Founder of Layer explains. “We wanted to complete the full narrative arc of decentralized architecture, and give the world the tools necessary to build any application, with any performance requirements in this trust-minimized way.”

They predict this original ideal, espoused by blockchain’s true believers, will soon be seen as an essential solution to existential threats in our digital world. According to Sam, Jake, and Ethan, the only way to verify the software and data you interact with online has not been manipulated by its creator, its host, a cybercriminal, an AI model, the government, or any other powerful actor would be with a protocol that guarantees trust.

“We are thrilled to back Jake, Sam, and Ethan on their mission to build out the next generation of blockchain infrastructure.” says Wei Dai, Research Partner at 1kx, “Traditional smart contract platforms rely on replicated execution which limits scalability. Layer’s platform and SDK offer the best-in-class scalability, programmability, and configurability for shared-security applications.”

Richard Muirhead, Managing Partner, Fabric Ventures commented: “We at fabric have long been excited to back teams expanding the boundaries of what is possible in crypto and Lay3r are doing exactly that. By defining a new category of shared economic security that spans hybrid off-chain and on-chain worlds, we believe Lay3r can be a Schelling point for new teams looking to build applications taking advantage of these core primitives.” – 

The team believes tools like Layer SDK will be the key to mitigating these incredible threats, and make the Decentralized Web the dominant web, complete with all the exciting products the founders have helped to pioneer in blockchain over the last 14 years.

Ends 

Notes to the editor
Media images can be found here. 

About Layer
Layer makes the Layer SDK, which will let you make your own Layer. These Layers represent full stack decentralized protocols. Leveraging Web Assembly you can write verifiable UIs, serverless functions, AI Agents, ZK Verifiers and provers.

About 1kx
1kx is a global venture investment firm that partners with forward-thinking founders, protocols, and communities to help grow the crypto ecosystem. Founded in 2018 and supported by a team of leading engineers, investors, and entrepreneurs, 1kx takes a collaborative, hands-on approach to help the best and brightest minds in web3 grow and scale their platforms and build lasting community-driven networks. To learn more, please visit https://1kx.network/.

About Fabric
Fabric is a venture contributor building and backing the boldest ideas across the Open Web, the convergence of distributed computing, Web3 and AI, to create a more fair, productive and sustainable economy—an Open Economy. We provide capital and technical support to Founders across the entire lifecycle of their companies. Fabric has a total portfolio market capitalisation of $30 billion representative of 116 global investments across pre-ideation to Series B. Together, we’re shaping a world where ownership, collaboration, and innovation thrive beyond traditional boundaries.

About Arrington Capital
Arrington Capital is a thesis-driven digital asset management firm focused on blockchain-based capital markets. The firm, founded in 2017 by TechCrunch and CrunchBase founder Michael Arrington, TechCrunch CEO Heather Harde and Geoffrey Arone, has invested in over 200 early-stage companies within the Web3 ecosystem. Arrington Capital is a seasoned, international team with deep venture capital experience and crypto native roots. Arrington Capital’s first fund was Arrington XRP Capital, and has expanded to multiple funds over time.
For more information on Arrington Capital, visit https://www.arringtoncapital.com/.

About IOBC
IOBC Capital is a global venture capital fund specializing in Web3 and AI, with a focus on both fund of funds and direct investments. Our mission is to leverage the best resources to invest in and support the next generation of top Blockchain and Web3 funds, empowering entrepreneurs to build decentralized ecosystems worldwide.

Wall St Business News, Latest and Up-to-date Business Stories from Newsmakers of Tomorrow