BlockCypher, a startup that provides a complete set of services for bitcoin developers, just closed a $3.1M seed round conducted by VC firms Boost VC, 500 Startups, Crypto Currency Partners and New Enterprise Associates (NEA). Individuals such as the former hip-hop artist NAS, Jesse Draper and Shawn Byers also participated in this round.
In a tough context marked by the recent bitcoin’s price decline, the fundraising demonstrates the confidence institutional investors still have regarding the crypto-currency, and BlockCypher ‘s ability to make the best out of the blockchain:
“We basically do web services for blockchains, [enabling] developers to easily build, monitor, and secure blockchain applications. BlockCypher is like Amazon Web Services for blockchains.” said BlockCypher CEO Catheryne Nicholson, a former U.S Naval Officer.
The possible applications permitted by BlockCypher’s flexible API are nearly endless. For example, merchants willing to accept and hold bitcoins won’t have to use payments processors anymore. Using BlockCypher’s API, they can generate a unique address, monitors the payment, and be notified within minutes if the payment is likely to be legitimate, instead of waiting for the usual six confirmations.
Catheryn Nicholson and her co-founder Matthieu Riou, the former VP of Apache Foundation, have come a long way since the launching of their service: the company processes half a million events per day and has customers spanning the world. The company plans to use the funds it just raised to expand internationally, especially in Europe and Asia. With existing local competitors such as Luxstack (Japan) and Gem, the competition is likely to be fierce and to the greatest benefit of their customers.
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