{"id":132612,"date":"2020-05-06T08:00:29","date_gmt":"2020-05-06T07:00:29","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=132612"},"modified":"2026-04-29T10:57:22","modified_gmt":"2026-04-29T09:57:22","slug":"ethereum-2-0-competitor-raises-21-million-from-a-top-tier-crypto-venture-capitalist","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ethereum-2-0-competitor-raises-21-million-from-a-top-tier-crypto-venture-capitalist\/","title":{"rendered":"Ethereum 2.0 competitor raises $21 million from a top-tier crypto venture capitalist"},"content":{"rendered":"<p>NEAR Protocol, which touts itself as an <a href=\"https:\/\/cryptoslate.com\/eth-merge\/\">Ethereum 2.0<\/a> competitor, has raised over $21 million from <a href=\"https:\/\/cryptoslate.com\/companies\/andreessen-horowitz\/\">Andressen Horrowitz<\/a> (a16z), just days after the latter announced a $515 million fund for expanding its cryptocurrency investments division.<\/p>\n<h2>A16z moves fast in the blockchain space<\/h2>\n<p>As per an <a href=\"https:\/\/www.businesswire.com\/news\/home\/20200504005546\/en\/Protocol-Project-Raises-21.6M-led-Andreessen-Horowitz\">official announcement<\/a> on May 4, NEAR Protocol closed the $21 million via a token and equity sale led by a16z, a crypto venture fund. Last week, <a href=\"https:\/\/a16z.com\/2020\/04\/30\/crypto-fund-ii\/\">the fund stated<\/a> its new $515 million reserves were dedicated to investing in \u201chigh-performance blockchain\u201d and distributed protocol building platforms.<\/p>\n<p>Past investors Pantera Capital, Electric Capital, Blockchange, and a few newcomer funds also participated in the funding round.<\/p>\n<p>The project confirmed the launch of its mainnet and stated developers can now develop blockchain-based applications, along with expecting the release of native tokens for microtransactions and transfers at a later date.<\/p>\n<p><a href=\"https:\/\/near.org\/\">NEAR<\/a> emphasizes its developer-friendly interface, touting easier-to-run directories and project building capabilities than present options. Illia Polosukhin, the CEO, confirmed the project\u2019s genesis block was activated in late-April 2020, adding:<\/p>\n<blockquote><p>\u201cDevelopers can actually deploy production apps while the network gets more decentralized and is ultimately handed off completely to the community over the next several months.\u201d<\/p><\/blockquote>\n<h2>Ethereum, Bitcoin, and a lack of progress<\/h2>\n<p>The potential rise of Open Web \u2014 a term used for the \u201ceconomy\u201d of decentralized applications and stateless microtransactions \u2014 and the lack of apt developer tools to facilitate the same is giving rise to firms like NEAR.<\/p>\n<p>Ethereum, the world\u2019s second-largest public blockchain by market cap, <a href=\"https:\/\/cryptoslate.com\/analysis-ethereum-is-being-bought-by-ibm-microsoft-other-fortune-500-companies\/\">is used by institutions<\/a> globally but suffers from a lack of scaling and network congestion during peak periods.<\/p>\n<figure id=\"attachment_132615\" aria-describedby=\"caption-attachment-132615\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-132615\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/atlas_rkt8jKMZz.png\" alt=\"network congestion on ethereum \" width=\"640\" height=\"360\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/atlas_rkt8jKMZz.png 640w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/atlas_rkt8jKMZz-300x169.png 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><figcaption id=\"caption-attachment-132615\" class=\"wp-caption-text\">(Graph showing network congestion on Ethereum dApp in 2018. <a href=\"https:\/\/www.google.com\/url?sa=i&url=https%3A%2F%2Fqz.com%2F1145833%2Fcryptokitties-is-causing-ethereum-network-congestion%2F&psig=AOvVaw1GUmBd_c42lOA33BT3X1zD&ust=1588773740976000&source=images&cd=vfe&ved=0CA0QjhxqFwoTCPDZ38bxnOkCFQAAAAAdAAAAABAO\">Source &#8211; Quartz<\/a>)<\/figcaption><\/figure>\n<p>While millions of dollars and thousands of man-hours have been put into developing open-source platforms, the overall progress is slow, <a href=\"https:\/\/cryptoslate.com\/ethereum-eth-developer-no-constantinople-hard-fork-in-2018\/\">faces delays<\/a>, suffers a lack of coordination, and even spurs riffs amongst key developers.<\/p>\n<p>Both Bitcoin and Ethereum are affected by the lack of oversight and singular leadership, which is a key USP of decentralized networks but also proving to be a hindrance.<\/p>\n<p>But Ethereum\u2019s developers are closing in. The long-awaited shift to \u201c<a href=\"https:\/\/docs.ethhub.io\/ethereum-roadmap\/ethereum-2.0\/eth-2.0-phases\/\">Senerity<\/a>\u201d sees the protocol move towards a Proof-of-Stake consensus design while introducing sharding to eliminate past issues.<\/p>\n<p>Last week, as CryptoSlate <a href=\"https:\/\/cryptoslate.com\/parity-developer-confirms-ethereum-2-0-schlesi-multiclient-testnet-is-live\/\">reported<\/a>, Ethereum successfully launched an important interoperability testnet pertaining to the 2.0 version, which was termed \u201csuccessful\u201d by developers and has reported no issues since.<\/p>\n<figure id=\"attachment_131981\" aria-describedby=\"caption-attachment-131981\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/parity-developer-confirms-ethereum-2-0-schlesi-multiclient-testnet-is-live\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-131981\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/ethereum-testnet-1024x538.jpg\" alt=\"Parity Developer confirms Ethereum 2.0 \u201cSchlesi\u201d multiclient testnet is live\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/ethereum-testnet-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/ethereum-testnet-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/ethereum-testnet-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/ethereum-testnet.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-131981\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/parity-developer-confirms-ethereum-2-0-schlesi-multiclient-testnet-is-live\/\">Parity Developer confirms Ethereum 2.0 \u201cSchlesi\u201d multiclient testnet is live<\/a><\/figcaption><\/figure>\n<p>NEAR\u2019s framework has been two years in the making and claims to be more scalable than Ethereum. The former even operates its protocol on a similar design as Ethereum \u2014 using \u201csharding\u201d to ensure faster confirmation times and quick transactions.<\/p>\n<p>While NEAR\u2019s announcement uses the same buzzwords as every crypto company that positions itself as an alternative to <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a> does, it remains to be seen if developers move to newer public blockchains ahead of the latter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NEAR Protocol, which touts itself as an Ethereum 2.0 competitor, has raised over $21 million from Andressen Horrowitz (a16z), just days after the latter announced a $515 million fund for expanding its cryptocurrency investments division. A16z moves fast in the blockchain space As per an official announcement on May 4, NEAR Protocol closed the $21 [&hellip;]<\/p>\n","protected":false},"author":65,"featured_media":132682,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35372,61713],"tags":[60923],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethereum 2.0 competitor raises $21 million from a top-tier crypto venture capitalist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ethereum-2-0-competitor-raises-21-million-from-a-top-tier-crypto-venture-capitalist\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethereum 2.0 competitor raises $21 million from a top-tier crypto venture capitalist\" \/>\n<meta property=\"og:description\" content=\"NEAR Protocol, which touts itself as an Ethereum 2.0 competitor, has raised over $21 million from Andressen Horrowitz (a16z), just days after the latter announced a $515 million fund for expanding its cryptocurrency investments division. A16z moves fast in the blockchain space As per an official announcement on May 4, NEAR Protocol closed the $21 [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ethereum-2-0-competitor-raises-21-million-from-a-top-tier-crypto-venture-capitalist\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-06T07:00:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-29T09:57:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/growth.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Shaurya Malwa\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shaurya Malwa\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ethereum-2-0-competitor-raises-21-million-from-a-top-tier-crypto-venture-capitalist\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ethereum-2-0-competitor-raises-21-million-from-a-top-tier-crypto-venture-capitalist\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/#person\",\"name\":\"Shaurya Malwa\",\"url\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/shaurya-malwa\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/07\/author-shaurya-malwa.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/07\/author-shaurya-malwa.jpg\",\"caption\":\"Shaurya Malwa\"},\"jobTitle\":\"Analyst\",\"description\":\"Post-mining his first bitcoin in 2012, there was no looking back for Shaurya Malwa. 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