Vitalik Buterin backs Nocturne Labs’ $6M seed round for Ethereum privacy protocol

In the midst of the ongoing buzz surrounding the potential approval of a spot Bitcoin ETF, the overall crypto industry is once again experiencing positive momentum. Firms in the crypto space are significantly expanding their businesses, knowing that once a Spot Bitcoin ETF is approved, this industry will see substantial growth.

Recently, Nocturne Lab, a US-based crypto startup, has successfully raised $6 million in seed funding (Seed funding means the startup raised funds in its initial stage or the beginning stage). This investment series was co-led by Bain Capital Crypto and Polychain Capital, with participation from prominent figures like Ethereum co-founder Vitalik Buterin, Bankless Ventures, Hack VC, Robot Ventures, and other investors. 

This seed funding started in January 2023 and ended in August 2023.What is Nocturne Labs?

Nocturne Labs was founded in the United States last year, its aim is to create a protocol that enables users to engage in anonymous transactions within the Ethereum ecosystem. Their unique approach involves the creation of “internal” accounts within Nocturne, where funds can be received and spent without complete transparency, preserving user privacy. 

Users can deposit or receive payments into their Nocturne account and then use zero-knowledge-proof technologies to demonstrate ownership of these funds for various transactions, including payments, trading, and staking.The importance of privacy

Nocturne Labs highlights the importance of privacy for the broader adoption of cryptocurrencies. They believe that individuals should have the ability to receive their salaries on the blockchain without disclosing their earnings, make purchases without disclosing their spending habits, and store assets on the blockchain without revealing their total holdings.

Also Read: JP Morgan links Ethereum’s staking to centralizationEthereum focus and regulatory approach

Nocturne Labs is currently focusing on introducing private accounts within the Ethereum ecosystem. Initially, it will support Ethereum, with plans to expand to Ethereum Layer 2 networks in the future. The protocol is set to launch on the Ethereum mainnet next month.

Given regulatory concerns surrounding privacy-focused crypto platforms, Nocturne Labs is taking a measured approach to ensure compliance. Nocturne plans to transition into a more permissionless approach in the future, focusing on “proof of innocence” to strike the right balance between compliance and permissionlessness.

At present, Nocturne Labs has a team of less than ten people, but they anticipate expanding in areas like engineering, growth, and legal/compliance functions following the mainnet launch. Last week on October 23, 2023, Blockaid also secured a series of funding of a significant $33 million to safeguard its customer users from exploitation, scams, and frauds, as reported by Todayq News. © Todayq News