Blockchain developers create a $50 million fund to encourage Wormhole use

An announcement made on May 18 states that a $50 million fund has been established to assist entrepreneurs using the Wormhole cross-chain communications technology. Over 20 additional blockchain development teams and venture capital businesses, including Circle, Polygon Ventures, Solana Foundation, JumpCrypto, and others, support the new fund, which is administered by venture capital firm Borderless Capital.

Blockchain developers establish a $50 million fund to promote use of Wormholes

A $50 million fund has reportedly been formed to help business owners that use the Wormhole cross-chain communications technology, according to a May 18 release. The new fund, which is run by venture capital firm Borderless Capital, is supported by over 20 more blockchain development teams and venture capital firms, including Circle, Polygon Ventures, Solana Foundation, JumpCrypto, and others.

According to its application page on the Wormhole website, the fund will assist startups that are "innovating cutting-edge apps, infrastructure, or tools that span multiple ecosystems," and it is also referred to as "anti-maxi" or advocating the notion that more than one blockchain is required to address user issues.

Borderless Capital's CEO and managing partner, David Garcia, expressed his belief that the new fund will contribute to the expansion of the Web3 economy and enable apps to draw in more users:

Our objective is to provide developers the tools they need to move beyond the constraints of certain ecosystems, opening the door for blockchain apps and protocols to reach their full potential.

A cross-chain communications mechanism is called Wormhole. It enables communication across various blockchain networks and is frequently used to transfer assets between networks. For instance, a user might utilise Wormhole to move Ether (ETH) from the Ethereum network to the Solana network. According to the statement, it is connected to more than 20 distinct networks.

There are also more cross-chain communications protocols, such as LayerZero, Celer, and DeBridge.

In the most recent few months, Wormhole has grown its network of collaborators. It was selected as the official bridge protocol for its cross-chain governance between Ethereum and the BNB Network by the cryptocurrency exchange Uniswap in January. Wormhole also connected with Circle's Cross-Chain move Protocol on April 26 to make it easier to move US Dollar Coin from Ethereum to Avalanche.

However, there has also been debate over Wormhole's security in the past. In February 2022, a cyberattack on its Solana bridge caused losses of $321 million. Later, developers fixed the flawed code that had caused the vulnerability and gave all consumers a refund.