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MegaLabs, Behind the “Real-Time” Blockchain, Raises $20 Million, Led by Dragonfly

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MegaLabs, the lead development company behind a new Ethereum scaling protocol designed to be so fast it’s considered “real-time,” announced Thursday that it has raised $20 million in a seed round led by Dragonfly Capital.

The round also participated in Figment Capital, Folius Ventures, Robot Ventures, Big Brain Holding, Tangent and Credibly Neutral, and included angel investors such as Ethereum co-founder Vitalik Buterin, Consensys CEO Joseph Lubin, EigenLayer creator Sreeram Kannan and Hasu from Flashbots.

The new round of capital will be allocated to the creation of the MegaETH protocol, with the aim of making a testnet operational in the coming months.

MegaETH calls itself a “real-time blockchain,” meaning it focuses on transaction processing speed, with plans to stream “100,000 transactions per second with millisecond-level responsiveness.”

“We define a real-time blockchain as a blockchain that can process transactions as they come in,” MegaLabs co-founder Yilong Li said in an interview with CoinDesk. “Then you produce the resulting outputs at a very high frequency.”

According to a press release, MegaETH achieves its scalability in two ways: through its “heterogeneous blockchain architecture, which increases performance by allowing network nodes with different hardware configurations to specialize on specific tasks,” as well as a “hyper EVM execution environment -optimized”. that pushes throughput, latency and resource efficiency to the limits of hardware.” An EVM execution environment is a blockchain operating system compatible with the Ethereum programming standard.

The idea for MegaETH was partly inspired by Buterin’s 2021 blog post, titled “Endgame,” where he addresses the scaling of Ethereum.

“Building hyperscale EVM implementations is a key prerequisite to truly scaling Ethereum,” Buterin wrote in a message on MegaETH, forwarded by a MegaLabs representative on Telegram. “I’m excited to see brilliant developers take on this challenge.”

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