Blockchain infrastructure startup Layer has successfully raised $6 million in a seed funding round, aiming to address the growing limitations of smart contracts by creating advanced developer tools for Ethereum-based decentralized applications. The round was led by prominent blockchain venture firm 1kx, with additional investments from Fabric Ventures, Arrington Capital, and Stake Capital Group.
Founded by blockchain veterans Sam Cassatt, Jake Hartnell, and Ethan Frey, Layer seeks to enhance Ethereum’s capabilities by developing tools that support full-stack decentralized applications (dApps) through Web Assembly. The company is committed to solving the inherent limitations of current smart contract functionality, which has posed challenges for developers working on complex dApps.
In a statement shared with crypto.news, Layer emphasized its mission to enable developers to build decentralized applications that rely on off-chain computation while maintaining the security of blockchain technology. The company’s platform, which includes a highly anticipated product called the “Layer SDK,” will combine blockchain’s security with off-chain services like AI agents and decentralized messaging servers.
The funding round saw participation not only from leading venture firms but also from angel investors, including Sreeram Kannan of EigenLayer, Mike Silagadze of Ether.fi, and former BlackRock executive Paul Taylor.
The Layer SDK is poised to be a game-changer for the Ethereum ecosystem, allowing developers to build layers on top of Ethereum that support full-stack blockchain applications. These applications will feature smart contracts, consensus mechanisms, user interfaces, and verifiable off-chain services, giving developers the tools they need to build more sophisticated, decentralized platforms.
According to Layer’s team, this integration of off-chain computation with blockchain technology will address the vulnerabilities that have plagued existing smart contracts. In September, blockchain analysts at Trugard Labs identified over 34,000 high-risk vulnerabilities in smart contracts deployed on Base, an Ethereum Layer-2 platform, highlighting the urgent need for more secure and scalable solutions. The vulnerabilities included hidden balance updates and minting manipulations, with similar issues detected across Ethereum and the Binance Smart Chain (BNB Chain), though in smaller numbers.
As Layer works to solve these issues, the company is positioning itself at the forefront of the next wave of blockchain innovation. “If successful, Layer’s technology could significantly enhance the market sophistication of decentralized applications and drive greater institutional and retail engagement in the crypto space,” said Youwei Yang, chief economist at BIT Mining.
The funding news comes at a time when the cryptocurrency market is experiencing significant growth, with Bitcoin soaring past $63,000. In addition, a new token called Crypto All-Stars (STARS) has raised over $2 million in its presale to create a unified staking hub for memecoins, further demonstrating the sector’s continued momentum.
Crypto All-Stars, while benefiting from the viral appeal of memecoins like Dogecoin and Shiba Inu, is distinguishing itself as a utility project. “It has potential for gains,” said Cilinix Crypto, a well-known analyst in the industry. The project’s goal of developing “MemeVault,” a platform where users can stake top memecoins and earn passive STARS rewards, has drawn significant interest from both conservative investors and memecoin enthusiasts.
As Layer continues to build its platform, its innovative approach to enhancing Ethereum’s infrastructure may offer a critical solution for the next generation of decentralized applications, making it one of the most anticipated projects in the blockchain space.
