To create its Ethereum-based interoperability center, Polymer Labs has raised $23 million in Series A funding.Together with contributions from several well-known investors like Coinbase Ventures, Placeholder, and Digital Currency Group, Blockchain Capital, Maven 11, and Distributed Global co-led the investment round.
Using a layer 2 network, Polymer has created an Ethereum-based interoperability hub by utilizing Inter-Blockchain Communication (IBC), which was first created for the Cosmos ecosystem to facilitate communication across various blockchains.Countering the interoperability issues arising from the growth of layer 2s is the goal.
“Existing interoperability solutions such as token bridges are widely used but have proven unreliable and susceptible to hacks, leading to a lack of standardization within the Ethereum ecosystem with billions lost in exploits,” Polymer Labs said in an emailed announcement on Tuesday.