Andreessen Horowitz and Polychain have led a founding round which has seen major venture capital firms invest $102 million in DFINITY to disrupt cloud computing with its blockchain-based ‘internet computer’.
With its foundation based in Zug, Switzerland’s blockchain hub, the Dfinity team working from Palo Alto aims to reinvent computing by replacing large platforms like Amazon Web Services (AWS) and Microsoft Azure with a decentralised alternative.
The not-for-profit organisation believes that by creating millions of nodes that will collectively serve as a public computing resource, its technology could cut the costs of running cloud-based business applications by 90 percent, stating that it has developed an:
“internet computer that will become the cloud 3.0.”
Dfinity claims that its team have made a number of breakthroughs that will redefine the current system, which relies on monopolistic firms such as AWS to provide storage and software.
With Dfinity’s claim to have addressed scalability issues, one of the worlds leading blockchain contenders to disrupt the giant tech companies, Ethereum may also see its place challenged by the new blockchain startup.
Chris Dixon, a partner of Andreessen Horowitz, explained in a blog post that Dfinity is distinct because of the technical prowess of its team, he wrote:
“Decentralized computation networks like DFINITY stand to bring us closer to a world where digital platforms can be constructed from trustless, autonomous, and open source software that is owned and governed by communities of users and developers, rather than companies,”
In May, the project successfully delivered $35 million worth of Dfinity digital tokens to early investors to help spur adoption. Dfinity does not anticipate big companies will move from current cloud services anytime soon, instead it expects to build initial adoption within the academic and startup world. Dominic Williams, President of Dfinity said:
“I know some startups that have built on Salesforce, and now they have colossal service bills that affect their ability to be profitable,”
The company plans to launch a private version of its network later this year, encouraging developers to test out Dfinity-compatible software services, with the aim of opening to the public at large in 2019. Andreessen Horowitz’, Dixon said:
“The Internet Computer is on track to become a critical piece of the future technology stack,”
Back in February, Dfinity was the first blockchain project that Andreessen Horowitz invested in, since then it has partnered with fellow repeat Dfinity investor Polychain to create their new ‘a16z crypto fund’, as part of it’s plan to help companies adopt blockchain technology.
In an announcement, Dfinity confirmed SV Angel, Aspect Ventures, Village Global, Multicoin Capital, Scalar Capital, and Amino Capital are among some of it’s other investors in this presale round. Since its foundation in 2015, it has raised a total of just under $200 million for its ambitious project, previously referred to as the “world computer”, to disrupt cloud computing.