Israeli Blockchain Firm Chain Reaction Raises $70M In Funding

Chain Reaction to Work on Electrum

In the first quarter of this year, Chain Reaction will begin mass producing its blockchain chip, Electrum, according to Alon Webman, co-founder and CEO of the firm. He claimed that the chip is designed to perform "hashing" operations quickly and efficiently and can also be used for mining digital currencies like bitcoin.

The company's CEO, Alon Webman, is confident that Chain Reaction can gain market share in the blockchain chip segment and aims to create a so-called "fully homomorphic encryption" chip that allows users to work on encrypted data.

He aims to release that chip by the end of 2024.

Security Concerns

According to Webman, security concerns prevent several sectors, including the military and governments, from fully migrating to the cloud. If you have data that has been encrypted into the cloud, you must decrypt the data in order to perform any data operations, data analytics, or artificial intelligence. As soon as the data is encrypted, a hostile person can attack it to read it, steal it, or even change it."

Webman has previously designed over 30 chips and co-founded Mellanox Technologies, which was bought by Nvidia Corp. for nearly $7 billion in 2020. 

With the most recent round of fundraising, $115 million has been raised overall.