NextBlock backs Soda Labs with $3M to bring privacy to public blockchains
NextBlock is putting $3 million behind an increasingly important challenge for public blockchains: how to give financial institutions privacy without forcing them to move their activity onto separate, purpose-built networks.
The Luxembourg-based venture capital firm has funded Soda Labs’ entire seed round. It is backing the company’s programmable privacy infrastructure for financial activity on public blockchains.
Soda Labs has spent the past two and a half years developing a cryptographic privacy system. It combines garbled circuits with multiparty computation, or GC-MPC. It relies on established cryptography including AES and SHA256 and runs on ordinary cloud CPUs rather than specialized hardware.
The technology is designed to enable private computation while applications remain connected to existing public blockchain infrastructure. That addresses a fundamental problem for banks, payment companies and other financial institutions. Public blockchains may offer liquidity and users, but financial data cannot always be visible to everyone.
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