Blockchain data indexing startup Nxyz raises $40 million led by Paradigm
Nxyz, a Web3 data indexing startup, announced today that it has raised $40 million in funding led by Paradigm to provide developers with scalable, flexible services to read data from blockchains in real time.
Other investors who joined the Series A funding round include Coinbase Ventures, Greylock Partners, Sequoia Capital and a number of Web3 angel investors.
Nxyz CEO Sridhar Ramaswamy, who previously headed Google’s advertising division, spun the new company out of Neeva, a privacy-focused search engine that he also runs. Researchers at Neeva came up with a solution to unlock blockchain data and decided it would require a standalone product.
“We created Nxyz so developers can focus on building at scale, and have the quick and easy method of indexing the data they need,” said Ramaswamy. “I am convinced that this is exactly the kind of innovation needed to ensure the widespread adoption and success of Web3.”
Broadly speaking, Web3 describes the ecosystem of peer-to-peer technologies that enable the “decentralized web,” or the next iteration of the World Wide Web, allowing transactions that avoid the need for intermediaries. It allows for the creation of decentralized apps and token economies where financial transactions can be carried out without the need for banks or other institutions, and participants can transact transparently using smart contracts across blockchains.
Although all transactions can be transparent, Web3 and the blockchain ecosystem is a giant, worldwide data structure with constant information flowing through it. That means getting information quickly and gathering insights quickly means the difference between making money or losing money.
According to decentralized finance tracking website DefiLlama, DeFi’s total locked-in value is currently $53.9 billion, down from $170 billion in January. Crypto markets can be extremely volatile and full of scams and exploits that can lead to losses.
With better insight into blockchain data, developers can build better software and avoid mistakes that can lead to vulnerabilities in decentralized apps. Recent software bugs have led to massive hacks that saw DeFi networks looted for millions, including $615 million stolen from Sky Mavis’ Ronin Network, $200 million stolen from the Nomad token bridge, and $160 million taken from Wintermute.
“We are no stranger to big data infrastructure,” Ramaswamy said. “Nxyz is made up of Web3 enthusiasts and distributed systems veterans who built the early infrastructure of Google’s search and ad serving systems. We leverage the work of our search technologists who have built full-stack, real-time indexers at scale for billions of data points.”
Nxyz is a multi-indexing service that can read data across multiple blockchains and deliver data in real-time via application programming interfaces for developers. It can also do so at scale for common devices used for decentralized blockchain applications such as non-fungible tokens, cryptocurrencies, crypto wallet balances and more.
Since its launch earlier this year, the platform has included beta participants and processed more than 5 billion transactions on supported blockchains, including Ethereum, Polygon, Binance, Avalanche, Arbitrum and Optimism.
Nxyz said it will use the money to expand its engineering team and add more blockchains in the coming months.
