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Blockstack Announces $25 Million Fund for Blockchain Applications

The New York-based startup has partnered with venture capital giants such as Lux Capital, Rising Tide, Compound, OpenOcean, and VersionOne for this project.
By TR Pakistan

Blockstack, a platform for decentralized internet, has revealed a $25 million investment fund to support developers utilizing its technology to build applications. The startup says that in order to improve an app’s chances of success, it requires access to resources. For this purpose, a Signature Fund has been set up to provide capital and tools to build an ecosystem of decentralized applications on Blockstack.

The New York-based startup has partnered with venture capital giants such as Lux Capital, Rising Tide, Compound, OpenOcean, and VersionOne for this project.

Applicants will be the first to hear about “XPRIZE”-style prizes and bounties for initiatives such as building a decentralized microblogging platform, being funded by Naval Ravikant, founder of AngelList, and Albert Wenger, managing partner of Union Square Ventures.

Muneeb Ali, co-founder of the company, told MIT Technology Review Pakistan that announcement of the fund would encourage young entrepreneurs to build new apps.

Read more: The New Decentralized Web Revolution

“We’ve seen interest in decentralized Twitter, decentralized blogging and Slack-like chat platforms,” said Ali. “Basically it is software we use everyday but now instead of giving all the data and control to big companies, users are more in control and will have better security.” 

Instead of the increasingly popular Initial Coin Offerings (ICOs), Blockstack continues to rely on traditional venture capitalists who have built up expertise over many years. The startup believes that the nature of venture investments is about to change. There will be new models of ways in which VC’s will invest money and that’s why the startup is excited about introducing one such model through their VC-backed Signature Fund.

Blockstack is using the blockchain technology to make a new internet for decentralized apps. The startup says that this new web takes power away from monopolies and gives it back to the people. It lets users exercise greater control and ownership over their identity information. Blockstack apps let users own their data by keeping it on their own device and also encrypting it before backing it up on the cloud. Apps are loaded via a secure domain name system and live on your devices, giving you more independence from third parties by putting you in control of your software. In addition, it lets you control your own identity and eliminates the need to make separate accounts on every website since your digital keys are seamlessly generated and kept on your device. This enables users to move freely between apps and control their online experience.

Blockstack has raised more than $5.3 million in funding to date and has registered 73,944 domains on its decentralized internet. It recently announced plans to launch a token and mining system to incentivize miners to support the platform, establish rewards for app developers and give stakeholders in the community more control over the product.

To get started on building apps on Blockstack, apply here.

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