For the second time this week, a blockchain startup has secured funding from venture capitalists.
Rootstock revealed Tuesday (March 22) that it had raised $1 million in seed funding led by Bitmain Technology, which will also facilitate the development of the company, reports said. The company was created by RSK Labs, the official recipient of the financing.
Rootstock uses distributed ledger technology to support the exchange and transmission of smart contracts, integrating Ethereum into its underlying infrastructure. The startup had already launched a venture to facilitate microfinancing in partnership with the World Bank across Latin America.
Reports said RSK Labs is now working on a smart contract platform to act as a portal through which developers can create their own blockchain solutions compatible with Ethereum.
The financing, which was also supported by Coinsilium and Digital Currency Group, will also be used to strengthen Rootstock’s existing presence in Latin America, Europe, Asia and North America, reports said.
“Rootstock is the most exciting opportunity for me among the startups in the bitcoin ecosystem,” said Bitmain Technology lead investor and CEO Wu Jihan in a statement. “The tidal wave of startups developing smart contract solutions based on RSK will bring countless miracles.”
In another statement, Digital Currency Group CEO Barry Silbert said the solution being developed by Rootstock “is important for both the technical and business communities building on blockchain technology today and will enable many new use cases that have not been possible to date.”
In its announcement, RSK Labs noted that the development of Rootstock is closely aligned with the community of bitcoin miners.
On Monday (March 21), reports emerged that Elliptic raised $5 million in Series A funding. While the startup also operates in the blockchain space, Elliptic’s solution helps financial institutions and others to ensure compliance when conducting transactions over the rail.
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