The altcoin Boba Network (BOBA), a new system for enhancing Ethereum's transaction capacity, has caught the attention of institutional investors. According to the announcement, the project reached a valuation of $ 1.5 billion. The price of the cryptocurrency has increased by over 17%, driven by institutional investment.
Boba Network has raised $45 million from a wide variety of investors, including cryptocurrency exchange giants Huobi, Cryptocom and BitMart. Boba Network successfully completed its Series A investment round, reaching a valuation of $1.5 billion. It is known that Dreamers VC, a firm founded by actor Will Smith and Japanese football star Keisuke Honda, also supported the 45 million dollar funding round.
Describing itself as a “next generation optimistic rollup scaling solution,” Boba Network not only improves Ethereum’s throughput, but also addresses the computational limitations of blockchain by aggregating and sequencing transactions from the main chain.
Boba Network founder Alan Chiu said that the inability of Ethereum smart contracts to deal with things like complex machine learning algorithms is a tradeoff that the layer1 network makes in favor of decentralization.
“All other efforts to scale Ethereum focus on making it faster and cheaper, but we really wanted to focus on an additional dimension of scalability that has been neglected, and that is Ethreum's computational limitations.”
For example, someone coding smart contracts in Ethereum's programming language Solidity cannot include precise calculations for square roots, he pointed out.
“Because blockchain is not designed to increase computational complexity and achieve consensus across a network of decentralized nodes.”
However, in the case of Ethereum solutions such as optimistic and zero-knowledge aggregations, the computations happen once and then cryptographic evidence is written to layer1 to prove that transactions were processed correctly.
“Layer2s (helper systems) have single-instance sequencers that act as block producers,” Chiu said.
“So we set out to modify Geth (a programming language for running Ethereum nodes) so that smart contracts in Boba can call any external API. Suddenly, you can do off-chain machine learning and have the results come back to your smart contract atomically, i.e. in the same transaction, in the same block.”