Multicoin announces $10M Series A investment in the makers of Pipe Network Permissionless Labs

Multicoin Capital, a cryptocurrency venture giant, has invested a $10 million Series A fund in Permissionless Labs, the company behind Pipe Network, the first permissionless content delivery network (CDN) on Solana.

The company, in a statement, said because Pipe Network is built on the most efficient cryptorails, is naturally permissionless, and is intended to drastically reduce latency, we think it has the potential to become the largest and fastest CDN in the world. There has always been a clear opportunity to build a decentralized CDN (dCDN) on top of cryptocurrency rails. Theoretically, because of structural cost arbitrage on drastically underutilized upload bandwidth, a dCDN should be able to provide more redundancy and lower latency at a lower cost.

In the years 2016–2020, there were numerous early attempts, but none of them were successful. The statement said since introducing Multicoin in 2017, the company has been considering investing in a dCDN.

CDNs are applications that are performance-sensitive by nature. A dCDN ought to be able to outperform a centralized CDN (cCDN) with the appropriate orchestration. It is challenging and not new to develop the orchestration layer necessary to enable a permissionless environment. A team with extensive domain knowledge is needed to build a dCDN.

With 20 years of experience in big data and streaming media, CEO David Rhodus David and his team have the ideal background to perform the low-level optimizations needed to make a permissionless dCDN outperform a permissioned cCDN.

Our investment in Pipe was motivated by their tight focus as well as the team's history. In the Decentralized Virtual Infrastructure Network (DeVIN) space, lots of teams are attempting various tasks.

The post said the Pipe Network is about to launch its private beta and make its testnet available to Pipe POP Node Operators. The first public demonstration of Pipe Network will happen next week at Breakpoint, Solana's annual developer conference in Singapore.

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