Conflux, a Layer 1 blockchain developer, raised $10 million from DWF Labs.
The investment will help Conflux expand its technology and grow its user base, DWF Labs said Wednesday. Conflux co-founder Fan Long confirmed the investment, saying it was settled "a few days ago."
DWF Labs bought Conflux (CFX) tokens from the project's team and foundation reserve and will "linearly unlock over a period of time," Long said.
He added that DWF's "strategic investment" will "tremendously" help Conflux build its ecosystem.
Conflux was developed by Long, who is also an assistant professor of computer science at the University of Toronto, and Andrew Chi-Chih Yao, the only Chinese Turing Award winner, who serves as the chief scientist of Conflux, according to Long.
The Conflux network went live in 2020, but it has been in the news lately as it recently formed partnerships with China Telecom, the country's second-largest wireless carrier, and Little Red Book, China's version of Instagram.
Long said Conflux is "the only regulatory compliant permissionless blockchain in China" and that the project's core research and development team is entirely Chinese. "Unlike all other public chains, we never did ICO [initial coin offering]-like activities, which are restrictively banned by the Chinese government," Long said. In 2021, the Shanghai government provided a grant of over $5 million to Conflux, he added.
On how Conflux is different from other blockchain networks, Long said the network's "Tree-graph" consensus algorithm allows it to achieve a capacity of 3,000 transactions per second with a confirmation time of 23 seconds, all while maintaining a high level of security.
"This elevates public chain technology to new levels of day-to-day performance," he said. "Over 300 platforms, brands, and IP parties have recognized, adopted, and strategically incorporated Conflux."
With fresh capital in hand, Conflux plans to further expand its ecosystem around Hong Kong's new web3 policy, Long said.
Hong Kong recently said in an announcement that it would earmark $6.4 million (HK$50 million) for developing its web3 ecosystem. Hong Kong's Securities and Futures Commission also recently published its proposed rules for virtual asset platforms.
There are currently around 70 people working for Conflux and the project doesn’t have immediate hiring plans, according to Long.
The DWF Labs investment brings Conflux's total funding to date to more than $50 million. The project has previously raised over $40 million, Long said.
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