<span style="font-weight: 400">Chain Reaction, a blockchain chip startup based in Tel Aviv, has <a href="https://www.reuters.com/technology/israeli-blockchain-chip-startup-chain-reaction-raises-70-mln-2023-02-23/" target="_blank" rel="nofollow noopener">raised</a> $70 million in a funding round led by Morgan Creek Digital, a venture capital firm specializing in blockchain technology, AI, and digital assets. This fund will be used to expand its engineering team as it works to develop its next chip and release it to the market this year.</span>
<h2><span style="font-weight: 400">Chain Reaction to Work on Electrum</span></h2>
<span style="font-weight: 400">In the first quarter of this year, Chain Reaction will begin mass producing its blockchain chip, Electrum, according to Alon Webman, co-founder and CEO of the firm. He claimed that the chip is designed to perform "hashing" operations quickly and efficiently and can also be used for mining digital currencies like bitcoin.</span>

<span style="font-weight: 400">The company's CEO, Alon Webman, is confident that Chain Reaction can gain market share in the blockchain chip segment and aims to create a so-called "fully homomorphic encryption" chip that allows users to work on encrypted data.</span>

<span style="font-weight: 400">He aims to release that chip by the end of 2024.</span>
<h2><span style="font-weight: 400">Security Concerns</span></h2>
<span style="font-weight: 400">According to Webman, security concerns prevent several sectors, including the military and governments, from fully migrating to the cloud. If you have data that has been encrypted into the cloud, you must decrypt the data in order to perform any data operations, data analytics, or <a href="https://www.cryptoknowmics.com/news/humans-a-platform-which-allows-you-bring-your-imagination-to-life-with-artificial-intelligence-on-the-blockchain/">artificial intelligence</a>. As soon as the data is encrypted, a hostile person can attack it to read it, steal it, or even change it."</span>

<span style="font-weight: 400">Webman has previously designed over 30 chips and co-founded Mellanox Technologies, which was bought by Nvidia Corp. for nearly $7 billion in 2020. </span>

<span style="font-weight: 400">With the most recent round of fundraising, $115 million has been raised overall.</span>

Israeli Blockchain Firm Chain Reaction Raises $70M In Funding

Chain Reaction, a blockchain chip startup based in Tel Aviv, has raised $70 million in a funding round led by Morgan Creek Digital.

Israeli Blockchain Firm Chain Reaction Raises $70M In Funding

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