Ireland-based cryptocurrency company Logos Network has raised $3 million in a seed funding for its blockchain-based payment system, the company said on Thursday.
Logos Network entered the highly competitive blockchain payment sector at the beginning of the year. The company’s system is still under development and will target micro transactions as well as large-scale business-to-business (B2B) financial dealings.
The major investors in the funding round were ZhenFund, which typically is very active in backing Chinese projects, the US Digital Currency Group as well as INBlockchain, and Blockwater Capital. Global Blockchain Innovative Capital (GBIC), AlphaBlock Capital, and AlphaCoin Fund also backed the project.
“If we are going to truly realize the disruptive potential of distributed ledger in payment applications, we need to remove the hurdles to adoption — namely speed, volume, cost and security,” Michael Zochowski, creator of Logos Network, said in a blog post.
Zochowski has worked for three years in the multi-billion-dollar hedge fund Ellington Management Group before entering the crypto world in 2017 with Logos Network and Promethean Labs, a crypto software company in the US.
Logos Network system plans to implement Axios, a delegated Proof-of-Stake (PoS) aiming to connect the algorithm with dynamic weighting based on Practical Byzantine Fault Tolerance (PBFT). When fully operational, Logos system will be based on the so-called chain mesh:
“The chain mesh consists of independent transaction chains for each account that form mesh-like structure through transfers. This allows for parallel processing of independent transactions, a large improvement over the serial blockchain,” Logos Network explains on its website.
Blockchain, the technology that underpins cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), is starting to wade into various sectors including sports, healthcare, agriculture and banking.
Developed as a distributed ledger technology (DLT), blockchain has the capacity to lower costs, speed up transactions and bring transparency, which is why many companies use blockchain solutions in the payment sector. One of the main players is California-based company Ripple, with xCurrent, which targets financial institutions, providing them with blockchain-based solutions for easier and cheaper banking payments.