Sequoia China, Shunwei Capital Co-Invest $35M Into Blockchain Developer Conflux Foundation

The developer of the blockchain protocol, Conflux, has received US$35 million from venture capital firms Sequoia China, IMO Ventures, Metastable, Shunwei Capital, FreesFund and Rong 360.

The Conflux Foundation, which develops the Conflux protocol, has confirmed the information to China Money Network.

Registered in Singapore, the Conflux Foundation is a developer of blockchain technology focused on decentralized applications and aims to improve the speed of decentralized peer-to-peer network (dApp). The Conflux team has also registered in Haidian District, Beijing under Qinghong Weigu Technology Development Co., Ltd.

The Conflux Foundation was established by a group of university professors and researchers including Chinese Turing Award laureate Andrew Yao.

Yao is recognized for his theory of computation, including the complexity-based theory of pseudorandom number generation, cryptography, and communication complexity. Currently, he serves as the Dean of the Institute for Interdisciplinary Information Sciences at China’s elite Tsinghua University.

Yao contributed to according to a paper published in August titled ‘Scaling Nakamoto Consensus to Thousands of Transactions per Second’ which proposes the mechanism of the Conflux protocol. The proposed protocol is implemented in the Bitcoin source code framework, but is a combination of directed acyclic graph (DAG) data structure and ‘proof of work’ consensus algorithm.

Unlike traditional blockchain which only allows a single block at one time onto a single chain, Conflux makes use of a different dApp protocol which enables multiple concurrent blocks to reach to and from any nodes through its DAG portal at the same time. The DAG structure, consisting of multiple individual nodes, makes transactions more effective and easy to access.

“Conflux’s main idea is how to make the whole blockchain scalable,” co-founder Fan Long explained in a statement to Fortune. “We’ve changed the structure of the blockchain so that it’s no longer a chain in the sense that it records each block based on what its parent block says.”