- Blockdaemon, a blockchain node provider, has raised $5.5 million in funding from multiple investors.
- The firm is planning to use the investment fund to expand into the Asian and European markets.
- The CEO of the firm said that using a professional node provider is less time consuming than running one independently.
Blockdaemon, a Blockchain node provider, has recently secured $5.5 million in funding from investors, including Hashkey, CoinShares, Blockchain.com, and Fenbushi Capital. The firm is planning to use the investment fund to expand into the Asian and European markets.
Blockdaemon offers necessary tools for exchanges, financial institutions, custodians and developers to deploy and manage nodes on more than 30 blockchain protocols. Users can either launch the nodes on their own infrastructure or with the help of cloud providers like Amazon Web Services and Microsoft Azure. Blockdaemon is also working closely with payment-centric networks like Celo and MobileCoin to explore running payment channels on Layer 2 systems.
Running a node on blockchains such as Bitcoin or Ethereum lets users send and receive crypto in a secure manner. It also allows developers and businesses to create DApps and deploy smart contracts on these networks. While users have a choice to run a node themselves, it’s important to note that this is a very time-consuming process.
Konstantin Richter, the CEO of Blockdaemon, said that using a professional node provider can free users from the stressful and tedious work of figuring out all the technical difficulties that are associated with managing a node.
There’re an unlimited amount of problems that could happen, from your node not being connected to the right peers, to you not having the latest software version updated, to your machine size being wrong with respect to what the network needs. We’re building a software that hundreds of thousands of people are using, so we just get much more input about potential problems. Every time we fix a problem for one customer, we pre-fix it for everyone else.
He further recommends users to distribute their nodes across a few different cloud providers.
You shouldn’t have all your nodes on Amazon. You want to make sure that you are not overly dependent on any one provider at any given time.
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