Signs of entering a new stage, Nervos raises $30 million in development grants

In 2019, Nervos, one of the four projects named by Bloomberg as worth paying attention to, will raise $30 million in ecosystem development grants to cultivate high-quality second-layer infrastructure for its public chain.

Strong Support for Ecosystem Partners

Nervos is currently one of the most promising public chains in China. The project raised a total of $72 million in its token sale in 2019, and this grant will be composed of cash raised from the token sale and other market funds. Ben Waters, Head of Operations at Nervos, stated in an interview:

“Considering the network development plan for the next five to ten years, $30 million is not too much, but we will definitely use the funds prudently and effectively.”

Nervos also announced today the successful applications of the first two development teams, which will build necessary infrastructure for the Nervos ecosystem. The first is the small blockchain company Summa based in San Francisco, which received a grant of $75,000 to establish an open-source library and enable interoperability between Nervos and the Bitcoin network. The second team, Obsidian Labs, also based in San Francisco, received a grant of $180,000 to provide an integrated development environment (IDE) on Nervos in the future, offering developers on the Nervos blockchain a powerful and user-friendly development environment.

Ben Waters pointed out that in about six to twelve months, Nervos will gradually provide grants to decentralized application and infrastructure development teams on Nervos, indicating a precursor to Nervos entering a more advanced development stage by strongly supporting ecosystem partners.

The Importance of Layer 2 Maturity for Nervos

The cultivation of a strong Layer 2 infrastructure is crucial for Nervos due to its unique design philosophy compared to typical public chains, insisting on using the more secure Proof of Work (PoW) consensus mechanism. The project places security such as state storage and important transaction confirmations on the base layer (Layer 1) handled through Proof of Work, while running smart contracts and Dapps on the more efficient second layer (Layer 2), where developers can build applications with "infinite scalability." Ben Waters commented:

“Nervos is suitable for development teams that believe Proof of Work is the correct and only way to achieve decentralization.”

Nervos is a well-known public chain project in China. In addition to the core development team being located in Hangzhou, the project also partnered with CMBI, a subsidiary of China Merchants Bank (CMB), last October to jointly develop and promote decentralized financial service applications.

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