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Decentralized Web3 Protocol Golden Raises $40M Backed By A16z – Defi Bitcoin News
Golden, a startup seeking to build a decentralized data center, has raised $40 million in a Series B funding round. The round, which was led by a16z crypto, will allow the company to continue building its concept, which revolves around combining data submission and validation with Web3-based token incentives.
Golden raises $40 million to build decentralized encyclopedia
Golden, a decentralized data hub company, has announced that it has raised $40 million in its latest Series B funding round. The round, which was led by a16z crypto, saw the participation of many big names in the VC industry, including Opensea Ventures and executives associated with Solana, Protocol Labs, Figma and others.
The company, which seeks to connect Web3 with the construction of a solid and verifiable information center, will use the funds to continue to build on its business model, which revolves around providing reliable data to customers. This is because current data mining models have proven to be unreliable, according to Jude Gomila, CEO and founder of Golden.
Gomila believes the only way to construct this global data repository is by creating incentives for users to contribute to the initiative. Golden provides a protocol that rewards users for verifying and submitting data, and apparently has ways to penalize the introduction of false data into the system. The protocol also has a means of providing increased rewards to users who submit the most used and requested data. In this way, the introduction of useful data is stimulated.
Business model
The operation of the protocol includes public NFTs (non-fungible tokens) that hold information about any concept included in the network (such as Coinbase, Open Source Software or Pancakeswap). Users can contribute by entering data into these structures and will be rewarded through these contributions, which must be validated.
The business model of the protocol is based on the sale of tokens to third parties who want to use the validated data for various reasons. Given the volatility of the cryptocurrency market, these institutions will be able to acquire and burn said tokens for stable credits that allow them to store this right to data access in a more secure way.
While the protocol is currently in the testnet, it has reportedly managed to gather the attention of 35,000 users who are already using the app and participating in data submission and validation, and is expected to launch on the mainnet in Q3 2023.
What do you think of Golden and its $40 million Series B funding round? Tell us in the comments section below.
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