• Israeli startup Chain Reaction has successfully raised $70 million to develop its blockchain chip.
• The new chip will be a „fully homomorphic encryption“ chip that allows users to access data under encryption.
• Chain Reaction plans to launch the chip by end of 2024 and start the mass adoption of its current blockchain chip Electrum in the first quarter of 2023.
Israeli Startup Chain Reaction Raises $70M
Israeli-based startup Chain Reaction has successfully raised $70 million to support the development of its next blockchain chip. The funds will go towards expanding the startup’s engineering team working on developing the next chip, which is planned for launch by end of 2024.
Next Generation Blockchain Chip
The new chip will be a „fully homomorphic encryption“ chip that will allow users to work on data while the chip is encrypted. CEO and co-founder Alon Webman noted that organizations and major industries that would otherwise use cloud services are restricted from doing so because of security concerns since once the data is decrypted it becomes vulnerable to malicious users looking to read, steal or change it.
Current Blockchain Chip Electrum
Chain Reaction also plans to start mass production in the first quarter of 2023 for their current blockchain chip Electrum. This chips is designed to support fast and efficient hashing and could also be used for mining cryptocurrencies.
Intel & Nvidia Corporation Chips
Chain Reaction is not the first company to develop a blockchain chip since software developer Intel in February 2022 partnered with Nvidia Corp to launch a blockchain chip. Nvidia also individually produces chips specific for Ethereum mining.
The new fully homomorphic encryption chips developed by Chain Reactions and others offer an increased level of security when dealing with sensitive data, allowing organizations and individuals more freedom when using cloud services without fear of malicious interference or theft.