Espresso Systems Completes $28 Million Series B Financing to Launch Shared Sorting! a16z led the investment

In the emerging field of blockchain technology, the high-profile project Espresso Systems recently announced that it has completed Series B financing, led by the well-known Web3 venture capital company a16z crypto, with a total of Raised $28 million. This move further solidifies Espresso Systems' leading position in shared sequencing.

Espresso Systems is a company focused on blockchain scaling and privacy infrastructure and the primary developer of the decentralized shared sequencer Espresso. The company recently completed an investment round, and the funds will be used primarily for product development, investing in the broader Rollup ecosystem, and expanding the Espresso team. This investment was completed at the end of February.

The official list of angel investors, contributors and strategic investors covers more than 30 well-known project teams in Rollups, Layer2 and modular blockchain, including Polygon, StarkWare, Arbitrum developers Offchain Labs, Taiko, Ethereum liquidity re-pledge protocol EigenLayer.

Coindesk noted that the latest round of financing brings Espresso’s total funding to more than $60 million, and the company did not disclose its latest valuation.

What is Espresso?

Espresso is renowned for its shared sequencer solution, successfully overcoming two of the biggest obstacles to Ethereum Rollup - fragmentation and centralization. It enables applications scattered across numerous L2s to gain the composability they are accustomed to on Ethereum Layer 1.

By using a decentralized shared sorter, different Rollups can share the same network, and the transactions of multiple Rollups can be aggregated in the memory pool before sorting. This approach ensures that no single entity is always responsible for ordering all transactions and generating blocks, helping to protect against the risk of network censorship and single points of failure.

Evolved into a "Shared Sorting Market"

Currently, Espresso is establishing a "Shared Sorting Market" to provide Rollups with the right to auction its blocks. According to Espresso, this setup facilitates interoperability between Rollups, allowing Rollups integrated with a shared sorter to extract value from the sort while maintaining sovereignty. Espresso Systems CEO Ben Fisch told Coindesk and The Block: “Rollups can sell the rights to build blocks to proposers who bid for those rights. Proposers can also open bidding on multiple Rollup blocks, which will allow them to Act as a shared proposer for multiple chains simultaneously. Anyone can participate in this market, including L1 proposers and Rollup itself. Rollups who don’t want to worry about ordering can rely solely on Espresso and trust that they are fully compensated for the value they create, At the same time, it protects its own sovereignty. The evolution from Espresso as a single decentralized shared sorter to a shared sorting market is critical to Rollup’s sovereignty and value capture.

In addition, Espresso also includes a final confirmation tool called HotShot, which serves as the consensus protocol for Espresso’s shared sequencer ecosystem. This ensures that all integrated Rollup chains can confirm transactions faster, thereby significantly reducing the risk of cross-chain liquidity providers and enabling faster bridging between Rollups.

It is understood that so far, Espresso’s technology has been integrated with popular Layer2 through the Gibraltar test network, including Optimism, Polygon zkEVM and Arbitrum. The company expects to release its fifth testnet, Cappuccino, in April this year to further enhance decentralization and lay the foundation for the launch of the Espresso market, with the goal of launching the mainnet in 2024.

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