Nomad, a cross-chain messaging protocol, raises $22.4 million in a seed funding round led by Polychain Capital.
The cross-chain messaging protocol of Nomad tackles the growing need for more secure blockchain interoperability.
Nomad takes a novel approach to blockchain interoperability that leverages an optimistic mechanism to increase the security of cross-chain communication. It allows off-chain watchers to challenge cross-chain messages via fraud proofs. Unlike validator-based cross-chain bridges, Nomad does not rely on a large set of external parties and only one honest actor is required to keep the entire system safe.
Nomad enables developers to securely build cross-chain applications (or xApps) and bridge data and assets between chains.
Pranay Mohan, CEO and Co-founder of Nomad, mentioned that over $1.5 billion of value has been exploited due to bridge vulnerabilities in the last six months.
According to Pranay, Figuring out ways to provide more secure cross-chain messaging is key to uniting DeFi ecosystems on thriving Layer 1 protocols and unlocking their combined value.
“By prioritizing security-first design, Nomad lets users send messages and bridge assets safely, with the assurance that honest watchers can flag fraudulent activity and protect the system,” Pranay added.
James Prestwich, Nomad CTO and Co-founder, said:
“Secure, cross-chain messaging protocols are critical for the future of decentralized finance because all blockchains operate independently. Meaningful decentralization can’t be achieved until people and applications on different blockchains can communicate through standardized protocols. Our protocol accelerates the adoption of cross-chain communications to help bridge siloed defi ecosystems together in the most secure and cost-efficient way.”
The seed funding for Nomad also attracted additional investors including 1kx, Ethereal Ventures, hack.vc, Circle Ventures, Amber, Robot Ventures, Hypersphere, Figment, Dialectic, Archetype, and LedgerPrime, among others.
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