Binance Labs invests in Zircuit to Advance Layer 2 Network
Binance Labs, the venture capital and incubation division of Binance, has invested in Zircuit to advance the Layer 2 network. The amount invested in Zircuit, an Ethereum Layer 2 (L2) network developer, is said to be an undisclosed sum. But given that Binance Labs has an amazing asset under management (AUM) of almost $10 billion, it is expected that the investment was sizable.
We’ve invested in @ZircuitL2
— Binance Labs Fund (@BinanceLabs) June 11, 2024
Zircuit is a zk rollup with parallelized circuits and AI-enabled security at the sequencer level.
Read more👇https://t.co/HEjFrFgJB6
According to Binance Labs on Tuesday, Zircuit is an Ethereum L2 network, structured as a zero-knowledge rollup with "AI-enabled sequencer-level security." The company went on to say that its investment will support Zircuit's continued network development and growth.
Martin Derka, a former executive at Quantstamp and co-founder of Zircuit, stated, "In Zircuit, just like in other rollups, the sequencer' is in charge of grouping transactions into blocks. But before adding transactions to blocks, Zircuit's sequencer examines their impact. It employs artificial intelligence to determine whether or not each transaction is a hack. Blocks do not contain transactions that are hacks. They are segregated instead."
Binance Labs provides financial support to Zircuit alongside other notable investors like Pantera Capital and Dragonfly, according to its bio on X. The amount of the investment and other details of the agreement were not disclosed by either company.
Zircuit was founded in mid-2022 and is presently in the testnet. Binance Labs has made an investment in Zircuit ahead of its mainnet launch this summer. Derka says the mainnet will be accessible in the upcoming months. He said that after the mainnet goes live, users can choose to withdraw their money or use its bridge to move it to the Zircuit network.
Zircuit states that more than 1,100 people have applied for its "Build to Earn '' program, and it has already amassed over $3.5 billion in staked assets. The project lists Ethena, Renzo, Ether.fi, KelpDAO, Ambient, Pendle, LayerZero, and other companies as launch partners. "The Zircuit staking program gathers liquidity that has pre-committed to join the Zircuit ecosystem and DeFi when the mainnet launches," Derka said.
Users are able to deposit and withdraw their assets at any time thanks to the smart contract management on Layer 1. He said that after the mainnet goes live, users can choose to withdraw their money or use its bridge to move it to the Zircuit network.
Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.