Espresso Systems Secures $28 Million in Series B Funding Led by a16z Crypto

Ethereum Ethereum Layer-2

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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March 22, 2024 05:19 EDT

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Espresso Systems recently secured $28 million in a Series B funding round, aiming to bolster Ethereum‘s Layer 2 solutions.

According to a blog post by Espresso Systems, this new influx of capital was led by a16z crypto. Other participants included Polygon, Taiko, o1Labs, StarkWare, Offchain Labs, among the rest of strategic investors and contributors.

We’re excited to announce that Espresso Systems has raised a $28 million Series B round led by @a16zcrypto. pic.twitter.com/ieoK2QAfQz

— Espresso Systems (@EspressoSys) March 21, 2024

Espresso Systems to Improve L2

The Series B funding will enable Espresso Systems to advance product development and invest in the rollup ecosystem, aiming for community-driven governance and full decentralization. The company plans to make Espresso a public good for various Layer 2 technologies.

Espresso is also launching a hiring campaign to strengthen its team with this investment, inviting builders passionate about Ethereum’s future to contribute to their vision.

“Espresso is more than just a shared sequencer, consensus protocol, or tool to facilitate interoperability between rollups,” the announcement reads. “Espresso is a marketplace for shared sequencing, where rollups can sell the right to build their blocks to proposers who bid for these rights.”

Marketplace and HotShot Features

The marketplace allows for bids on sequencing multiple rollups simultaneously, facilitating cross-chain activities. The company indicated that this feature is open to all, including Layer 1 proposers and rollup DAO sequencers, enabling rollups to delegate their sequencing tasks to Espresso for simplified management.

The HotShot feature provides fast finalization for blocks, helping to preserve the expected user experience. Financially supported by stakeholders and Ethereum restakers, HotShot has the potential to extend to the full Ethereum validator set, ensuring transactions are finalized on Layer 1.

“Overall, we are building Espresso to be a one-stop solution for rollups to increase utility for their users through improved safety, liveness, and interoperability,” stated Espresso Systems. “While being compensated for the value they create and maintaining their sovereignty and autonomy.”