The Polkadot-based platform, Plasm Network recently closed a $2.4 million funding round led by Binance Labs, the venture arm of Binance.
Spurred by an increase in Decentralized Finance (DeFi) usage, increased transactions and higher fees are clogging up the Ethereum (ETH) network. This has led to a recent rise in prices and interest in alternative smart contract platforms or adaptive solutions, with Polkadot and Plasm being one of the biggest. Projects are building on new platforms claiming to be faster and cheaper than their predecessors.
Plasm Network Uses Polkadot to Boost Ethereum
The Plasm Network is a leading parachain candidate on Polkadot, a chain specific to one application but validated by Polkadot nodes. This parachain will support Ethereum applications and Layer Two (L2) solutions. This will enable them to run faster and cheaper than what is currently available.
This is Binance Labs’ first investment on behalf of its $10 million Polkadot ecosystem fund, a new initiative to help grow Polkadot as a usable smart contract platform.
Binance Labs led the funding round, but other key stakeholders also took part. They include HashKey, LongHash, Digital Finance Group, and PAKA Ventures. Plasm will use the additional funding to accelerate its planned roadmap and develop an Ethereum bridge. The bridge will act as an on-chain governance platform and a future network portal.
This funding round is a significant step for Plasm, moving it closer to becoming one of the first usable parachains in the Polkadot and Kusama ecosystems. When asked about the viability of the network, Ryan Chen, Director of Strategy at HashKey, stated:
“Plasm Network is a leading dApps hub on Polkadot, and we are sure that Plasm will be one of the most important components in the Polkadot ecosystem. It will be a core platform to realize Web3.0 vision. We are excited to have this journey with the Plasm team.”
What’s Next for the Network?
This funding will enable it to move closer to its launch goals. Plasm deployed its first smart contract on Polkadot’s testnet iteration, Rococo. According to the statement, it also submitted its Web3 Foundations Open Grant and will offer transactions using ZK Rollups in the parachain.
This addition would add privacy measures to the parachain and to the dApps running on it. Keep an eye on the Plasm Network as it continues to progress towards launch.
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