Hedge fund and investment firm, Pantera Capital has invested in Polkadot and at least three other scalability-focused projects. Others that have been adopted by Pantera include Filecoin, Origin and BloXroute according to a report by Forex Crunch on Thursday.
All four projects are distributed ledger technology-focused (DLT) firms and the aim of the collaboration is to solve major scalability problems faced in the crypto space.
If things work out as planned, then the projects are likely to be launched before the end of 2019 according to Dan Morehead, the CEO of Pantera Capital. He said,
“These technologies and apps aren’t developed overnight. The reality is that investing in them is like early-stage venture but with a real-time price feed”.
Additional Robustness to Pantera Capital’s Blockchain Infrastructure
Morehead, speaking on the possibility that this collaboration might bring scalability solutions, admitted that blockchain technology is a major tool for developmental transformation of financial sectors operating in this present century. Although blockchain brings opportunities of massive innovation to several sectors, it also exhibits a major yet-to-be-solved issue of scalability.
In Dan’s words,
“We have been supporting them since their earliest stages of development and are excited to see working products ship. Not only will this bring more liquidity to our ICO funds, but also bring additional robustness to blockchain infrastructure.”
Blockchain Scalability Issue Attracts Synergistic Actions
While Pantera Capital is an investment firm experienced in both traditional finance and emerging blockchain technology, Polkadot makes its own unique contribution by developing a technology that would make use of relay chains and parachains to connect separate blockchain networks, thereby enabling cross-chain communications with zero friction.
Origin, on the other hand, will be focused on building a protocol that will facilitate the operations of decentralized marketplaces on the Ethereum smart contracts networks, ensuring direct connection between buyers and sellers. By using the Ethereum blockchain to eliminate the need for third parties that charge up to 30% commissions on transactions, Origin can bring about massive cost savings for the transacting parties.
According to Origin,
“The total addressable market within the sharing economy model is huge and so are the fees charged by the middlemen in control: Uber, Lyft, Airbnb and others. Eliminating these entities would reduce costs for both the buying and selling parties.”