One of the top trending news all over the cryptocurrency world is the recent news of Vitalik Buterin, the co-founder of Ethereum along with some large names in crypto investing in a mostly unknown crypto project called MegaETH.
In this article, we will try to look at what the MegaETH project is all about and try to bring light to what Buterin’s decision to invest in the project was all about.
Let us first look at what the MegaETH project is and what its features are in the first section.
What is MegaETH?
MegaETH is a blockchain that hopes to be recognized as the first Real-Time Blockchain network capable of achieving a Transaction Per Second (TPS) of 100,000 with only milliseconds of latency.
The MegaETH project was launched in 2023 by Shuyao Kong, former head of business development at Consensys, and Yilong Li who has working experience in the software named Runtime Verification.
The MegaETH project was introduced as a game-changer in the Ethereum Virtual Machine-compatible blockchain network as it aimed to break the 3-digit transaction per second (TPS) barrier that existed as a norm in most blockchains in the network.
The MegaETH project gets its security from Optimism’s fault-proof system that Ethereum uses while its architecture allows for it to leverage the base layers of Ethereum and Eigen DA for these data and security needs.
The MegaETH uses two important key techniques to achieve real-time speed in its network.
The first of the key techniques is a hyper-optimized EVM execution environment that helps to assist the second component in the network.
The second component, its heterogeneous blockchain architecture boosts performance by letting different hardware configurations specialize in specific tasks thus reducing latency and improving resource efficiency.
This new design solves one of the major scalability challenges that blockchains usually face called the Straggler problem, which is what happens when a few slow nodes cause a delay in the production of a block.
These heterogeneous nature components are credited with giving the MegaETH its Real-time processing capabilities.
Let us now look at the seed funding saga of MegaLabs in the next section.
The Seed Funding Saga of MegaETH
MegaETH’s Seed Funding initiative was surprisingly attended by a list of the most reputed institutions and angel investors in the crypto industry.
The institutional participants included Figment Capital, Dragonfly, Robot Ventures, and others of the same stature.
Angel investors such as the Ethereum co-founder Vitalik Buterin, EigenLayer founder and CEO Sreeram Kannan, Consensys cofounder Joseph Lubin, Helius Labs co-founder and CEO Mert Mumtaz, Cobie, Santiago Santos, etc. were some of the others who participated and contributed to the event.
The seed funding capital of $20 million was reached within a short period of time after launching its campaign. The leading investor in the seed round was ‘Dragonfly’ followed by some of the other big names in the business.
The success of the seed funding campaign led to the company’s token valuation hitting a 9-figure amount ie. closing near to $100 million mark.
Now, let us look at the involvement of Vitalik Buterin in the seed funding campaign and look at the reasoning behind his involvement.
Vitalik Buterin’s strategy Explained
In a statement released by Vitalik Buterin surrounding his investment strategy concerning his recent contribution to the MegaETH, he said the following: “Creating hyper-scalable EVM implementation is a key prerequisite for truly scaling Ethereum. I am excited to see brilliant developers taking on this challenge”.
By just a simple analysis of his statement, we can see how excited he is about the future of the project and the benefits that it can provide to the Ethereum network.
Vitalik also seems to hope for the project to scale up to new heights financially after its launch later this year.
The project seems to consider it quite an honor to get the backing of Vitalik Buterin in their venture and hopes to live up to his expectations in the future.
Now, let us look at what we can conclude from the details that we have looked at in the section above.
The Bottom Line
Taking such an important initiative into one’s own hands many of the investors hope for MegaETH to live up to the hype and deliver satisfactory results.
The backing that it received from the long line of investors stands as a testament to the trust that they have put into the MegaETH group.
The project which currently consists of less than 20 members and is bound to go live by early fall of this year is undoubtedly one of the most anticipated crypto projects in today’s crypto world.
