Ethereum Startup Obol Labs Raises $12.5M to Decentralize Validators
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When Ethereum switched to proof-of-stake, its new system for processing transactions in September, it handed control of the network from crypto miners to validators.
In the midst of the crypto bear market, startup Obol Labs has raised $12.5 million in venture funding to build out distributed validator technology (DVT), a kind of tech that it believes solves some of the biggest pain points for Ethereum’s new validator class.
Among those on board with Obol Labs’ vision are crypto VC stalwarts Pantera Capital and Archetype, which co-led the series A round. Led by alums of Ethereum research and development firm ConsenSys, Obol Labs has now raised a total of $19 million
“DVT is a technology primitive that allows an Ethereum Proof-of-Stake validator to be run simultaneously on more than one node or machine,” Obol explained in a statement shared with CoinDesk. “The major breakthrough is the ability to split up a single validator key, making it possible for a group of people to share validation rights of an Ethereum validator.”
Validators, which earn rewards for operating the network of nodes that keeps Ethereum up and running, face challenges ranging from high capital requirements (you must “stake” 32 ETH to become a validator) and technical complexity (validators can pay penalties if they screw up or go offline).
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