Chinese project Nervos has launched a $ 5 million fund to support cryptocurrency firms and decentralized finance (DeFi) projects.
The Nervos management announced that the fund was created to provide grants to firms working in financial technology and blockchain. Specifically, Nervos intends to provide material support to developers building decentralized exchanges, platforms for issuing synthetic assets and lending solutions. Priority will be given to those projects that seek to interact with multiple blockchains. Grant recipients using the Nervos blockchain will be eligible for technical support from the project’s core development team.
Nervos was founded in 2018 by the creators of the Ethereum mining pool Spark Pool. The project is an open source blockchain that aims to address security and scalability issues through a two-tier structure, and to create a “universal, public network like the Internet.” Nervos executives said the fund was created in response to recent controversies over the centralized financial sector.
We are talking about the situation with the shares of the American retail chain GameStop, which cannot be bought by retail investors, while hedge funds can freely trade them. This has outraged politicians, regulators and ordinary users. Nervos co-founder Kevin Wang believes that centralized financial systems are outdated long ago, making settlements ineffective. He said:
“People are increasingly interested in blockchain and cryptocurrencies due to the many barriers in traditional finance. Users need to be able to easily transact on the blockchain and that space needs to scale. ”
In the fall, Nervos introduced its own standard for creating tokens, Simple User Defined Token (SUDT), to compete with the ERC-20 standard in the DeFi industry. Additionally, a few months ago, Nervos and Cardano began conducting research to improve the security of smart contracts by improving the unspent transaction output (UTXO) system.
