The $5 million fundraise by Inco, a Web3 protocol focused on building holistic blockchain confidentiality solutions, wrapped on Wednesday. This strategic round was led by a16z crypto CSX. The funding round included Coinbase Ventures, 1kx, Orange DAO, South Park Commons, Script Capital. Inco will use the proceeds to further develop its EVM-compatible Layer 1 solution. This cutting-edge solution, based on fully homomorphic encryption (FHE) technology, is designed to build a composable and operable privacy state.
This new investment follows a record-setting $4.5 million funding round that closed last February of 2022. 1kx led that round, with participation from Circle Ventures, GSR, Polygon Ventures, Robot Ventures, Alliance DAO, and Matter Labs, the developer of zkSync. Inco is excited to take its mission to the next level with this new capital infusion. The company is reportedly looking to bring more robust privacy protections to the Web3 ecosystem.
Advancing Blockchain Confidentiality
Inco is committed to meeting the increasing demand for privacy in blockchain. The protocol’s Layer 1 solution is EVM-compatible. This compatibility provides developers the tools needed to develop and deploy dApps with advanced privacy capabilities. Inco employs fully homomorphic encryption (FHE) technology to build a composable and operable privacy state. This lets you run queries and machine learning models against your encrypted data, without ever having to decrypt it yourself.
Inco is a modular Layer 1 that integrates "Fully Homomorphic Encryption" (FHE) and EVM, and can also serve as a universal privacy layer for Web3. Privacy is important to blockchain. In addition to the basic demand for privacy by the public, many institutions cannot build on existing blockchains because they need to properly handle sensitive data. In addition, some specific types of applications such as games also have a rigid demand for privacy. With Inco's privacy services, developers will be able to explore more potential use cases around games, DeFi, commercial activities and more. - Remi, founder of Inco
The need for privacy solutions in the blockchain space is more important than ever. Now, sensitive data is making its way onto decentralized networks. This increase produces an increasing need for resources that can adequately safeguard that information.
Strategic Investment and Support
The strategic funding round led by Inco’s partners a16z crypto CSX, is a clear vote of confidence in both Inco’s vision and groundbreaking technology. Other prominent investors, including Coinbase Ventures and 1kx, are joining this round. Their participation makes even more solid the case that Inco’s approach to blockchain confidentiality is genuinely groundbreaking. This financial backing will enable Inco to expand its team, accelerate development efforts, and forge strategic partnerships within the Web3 ecosystem.
Venture capital firms such as Orange DAO, South Park Commons, and Script Capital have joined the fray. Their royalty participation highlights the broad-based popularity of Inco’s mission. These investors have a keen insight into the important role privacy will play in order to unlock Web3’s full potential. They are truly committed to supporting the projects that are pushing the boundaries of blockchain technology.
Fully Homomorphic Encryption (FHE)
At the center of Inco’s technology is fully homomorphic encryption (FHE). FHE is an innovative new cryptographic approach that enables computations to be performed on encrypted data without needing to decrypt it at any point. In this way, sensitive information can be incorporated and counted while protecting the underlying data. This latest advancement opens the door to really prioritizing privacy and security.
By taking advantage of FHE, Inco allows for a composable and operable privacy state. This allows dApps developed on Inco to execute advanced algorithms on encrypted data without ever compromising the private information. This opens up an incredibly complex new avenue for blockchain technology. The effect is particularly pronounced in areas such as decentralized finance (DeFi), healthcare, and supply chain management.
