By Richard Hines
Ethereum Startup Obol Labs successfully raised $12.5 million in a funding round led by Panthera and Archetype, targeted at developing a more decentralized network for validating on the Ethereum network.
This comes after the Ethereum network moved from the Proof of Work to the Proof of stake consensus.
Decentralized Validation On Ethereum
This fundraising was led by venture capital firm Panthera and Archetype, with joint cooperation from other investors.
Obol Labs is developing a decentralized validator network, which is targeted at making it easier for investors to engage in the process of validating transactions on the Ethereum network.
This is achieved through a staking process where users lock up a certain amount of token in order to be validators on the network.
Currently, the vast majority of validators on the Ethereum network is dominated by big centralized entities and financial firms—which totally brings into question the notion of decentralization.
This concentrated authority has posed a problem to the space making the network more prone to attacks and hacks.
Protecting The Network Against Attacks
With this new development in the works, Obol Labs aims to change this by creating room for more normalized staking and validation processes that fall into the hands of normal investors making it decentralized.
This development will make the network more safe and protected against cyber attacks. The funding will be used to develop the technology and the team.
According to the firm, the funds will be allocated to create accessible features for users likewise expanding the validator network to accommodate other chains too.
Obol Labs also intends to collaborate with other projects in the Ethereum ecosystem to develop a more decentralized web.
Obol Labs co-founder and CEO, Alex Gluchowsk believes that a decentralized validator network is very important for a safe, secure and developing ecosystem.
He believes this goal will be achievable with the funding provided. The amount raised in this round of funding shows a healthy sign, for the network depicting many are still interested in the growth of development of the ecosystem.
It also translates to a wider acceptance of decentralized finance (DeFi) as a better option, which is built on blockchain technology like Ethereum.
Obol Labs’ decentralized validator network will be a significant technology for the DeFi ecosystem, making it more safe for everyone.