The Keep Network – which looks to bring a new level of privacy to bitcoin through Ethereum – has closed a funding round that garnered close to $8 million from investors like Paradigm, Collaborative Fund and Para FI Capital.
The Keep Network Has a Lot of Money to Its Name
The Keep Network is a regular contributor to what’s known as t-BTC, which seeks to ensure Ethereum-based assets are available on the bitcoin blockchain.
Paradigm founder Fred Ehrsam – who also co-founded Coinbase, one of the largest and most popular cryptocurrency exchanges in the United States – comments:
Decentralized financial applications on Ethereum have seen clear demand. Bitcoin is the world’s largest cryptocurrency. Building a bridge that allows bitcoin to interact with De Fi makes a lot of sense, and t-BTC is a credible attempt to do that.
Matt Luongo – the founder of the Keep Network – says his inspiration for t-BTC came about several years ago when he and his wife had saved up all their bitcoin to purchase a house they liked. At that time, the market wasn’t very mature, and Luongo saw how unstable and how non-private the network was, a notion that concerned him heavily.
The goal is to give bitcoin the superpowers that smart contracts have on Ethereum and to bring bitcoin as collateral to decentralized finance. It’s trustless and permission-less to mint and redeem; there aren’t any intermediaries, and it’s simple and secure. It maintains the hard money properties of bitcoin on Ethereum.
Despite its alleged lack of scalability according to Vitalik Buterin – one of the co-founders of Ethereum – the currency is still widely considered superior on a technical scale to assets like bitcoin. Ethereum allegedly performs transactions quicker and provides developers with more options given its abilities with smart contracts, which also make it more private.
Luongo says the idea for a privacy-based bitcoin network came to him about five years ago. He purchased his early morning coffee and it occurred to him that the details of the transaction would be made available to third parties… He didn’t like that.
He later became interested in both confidentiality and on-chain privacy. He explains:
If we’re going to rebuild the financial system, if we’re going to rebuild institutions, we need to do it right this time. That means we need to be thinking about privacy a lot earlier in the process… My hope is that by allowing bitcoin the asset to be separate from bitcoin the network, we will open up some serious financial privacy superpowers.
Keeping Things Safe and Secure
He is now ensuring t-BTC has been implemented onto the Keep Network, where the network’s native token – KEEP – is available to be staked by users.
KEEP staking customers are randomly selected to back t-BTC deposits, so we get some assurances that these people have skin in the game.