Golden, a startup looking to build a decentralized data center, has raised $40 million in a Series B funding round. This round, led by cryptocurrency a16z, will enable the company continues to build on its concept, which revolves around combining data submission and validation with Web3-based token incentives.
Golden Raises $40 Million to Build Decentralized Encyclopedia
Golden, a decentralized data center company, has announced it raised $40 million in its latest Series B funding round. The round, led by cryptocurrency a16z, featured many big names in the VC industry including Opensea Ventures and related leaders Solana, Protocol Labs, Figma and others.
The company seeks to pair Web3 with building a solid and verifiable information hub, will use the funds to further build its business model around delivering reliable data to its customers. This is because current data mining models have proven unreliable, according to Jude Gomila, CEO and founder of Golden.
Gomila believes that the only way to build this global data warehouse is to create incentives for users to contribute to the initiative. Golden provides a protocol that rewards users for verifying and submitting data and ostensibly has ways of punishing the introduction of fake data into the system. The protocol also has a means to increase rewards for users who submit the most requested and used data. In this way, the introduction of useful data is encouraged.
Business model
The operation of the protocol includes public NFTs (non-fungible tokens) with information about any concept included in the network (e.g. Coinbase, Open Source Software, or Pancakeswap). Users can contribute by entering data into these structures and will be rewarded through these contributions, which will have to be validated.
The protocol’s business model is based on selling tokens to third parties who want to use the authenticated data for different reasons. Given the volatility of the crypto market, these institutions will be able to buy and burn the aforementioned tokens for stable credits allowing them to store access to this data in a secure manner. than.
Although the protocol is currently in the testnet, it has reportedly attracted the attention of 35,000 users who have used the application and participated in the data submission and validation process, and it is expected that will launch on mainnet in Q3 of 2023.
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