Blockchain scaling platform Dymension, on Thursday, announced that it had raised $6.7 million and would be releasing its public testnet. The funding round saw the participation of several leading venture capitalists and angel investors.
There’s been a huge drive in the development of Layer 2 scaling solutions like rollups and state channels that help reduce pressure on Layer 1 platforms like Ethereum. Network congestion and high fees are some of the problems faced by users. However, the recent fundraising round aims to bring expanded scalability to Cosmos.
L2 solutions help reduce pressure on Layer 1 platforms by moving the major computational burden and transaction execution off the primary L1 blockchain network. So, Dymension’s funding round will introduce the blockchain’s first rollups in a testnet that will go live on February 15th.
Thrilled to announce a $6.7M raise to bring to life a network of easily deployable modular blockchains!
Get ready for 35-C the first-ever testnet of IBC-enabled rollups (aka RollApps💈) launching on Feb 15th. Join the community and take part in the future of Modular blockchains! pic.twitter.com/DCFMyEUhd7— Dymension (@dymensionXYZ) February 9, 2023
About Dymension’s Rollup
Dymension is building a rollup development kit (RDK) for L2 chains. The EVM-compatible rollups will connect to the Cosmos and IBC ecosystems and serve as the IBC Layer 2 network. This marks the first time rollups can connect to the Cosmos IBC.
Explaining the project, Dymension Labs’ Yishay Harel said, “We’re scaling a network of blockchains with technology capable of making the biggest paradigm shift since Ethereum. Dymension Hub will be the center of a new internet of value, composed of numerous modular blockchains.”
Big Brain Holdings’ (which took part in the funding) General Partner Kasey further explained that “Dymension RollApps are a major step forward for the blockchain infrastructure stack. They allow builders to monetize their apps as standalone chains without massive infrastructure overheads. We’re extremely excited to back the team on their journey.”
In rollups, transactions are grouped and processed in L2 before being sent over to the L1 network and recorded there. Rollups cause a whole lot of difference for L1s by processing transactions on a different layer.
They can increase the speed and effectiveness of the Layer 1 blockchain, enabling it to accommodate a bigger volume of transactions without compromising security. Rollups are also intended to lower the costs related to handling transactions on a blockchain network.
What’s the Impact for Developers?
The Dymension Hub and Celestia’s modular blockchain will both receive data from Dymension’s public testnet rollups. This makes the deployment and interaction processes with rollups incredibly quick, simple, and affordable.
As mentioned earlier, Dymension’s RollApps are EVM-compatible. So, smart contracts written in Ethereum’s Solidity language can be executed in the Cosmos environment. RDK will also allow developers to connect to the Cosmos Inter-Blockchain Communication (IBC) protocol. This ensures that L2 rollups can interact with compatible rollups and blockchains.
Developers will be able to quickly create effective rollups that can satisfy users’ needs with the help of Dymension’s RDK. Furthermore, Dymension’s RDK will enable developers to easily incorporate the liquidity, security, and decentralization of the blockchain world into their existing applications or create a brand-new one.
These tools can make it easier for developers, businesses, and groups to quickly create and deploy their own blockchains with unique tokenomics and fees. It also unlocks a new potential for high-performance solutions with low fees without compromising decentralization and security.
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