High frequency dealers are the Whiz Kids of Wall Street. They either encode scripts to carry out fast business to make small profits that, multiplied by a or ten thousand times, lead to serious money. Or you can act faster than competitors to achieve large bets on market fluctuations. Speed is Paramount, which is why HFT dealers have created their own private networks of internet cables -now, a Crypto project called Doublezero wants to do the same to speed up blockchains.
“We can use a number of technologies that were basically standard and de facto in the high frequency trading world … but are not available on the public internet, so they have never been applied to blockchain” Assets.
Federa’s project, which has the same obsession with speed as the companies in Michael Lewis’ famous HFT book Flash boyshas already put on capital. The Doublezero Foundation, one of the companies behind the project, announced at the beginning of March that she collected 28 million US dollars in a seed round of Marquee Crypto investors Multicooin Capital and Dragonfly Capital. Other risk capital companies that contributed were Foundation Capital, mutual companies, DBA, limitless capital, superscrypt and smooth. In return for their money, investors received token arrangements or promised allocations of a cryptocurrency that was still to be started, said Federera.
Coind Solana or Ethereum are like Amazon Web Services or Google Cloud – but decentralized.
And like any cloud computing network, blockchains have physical servers that process the transactions of the users and carry out programmer apps. If servers, for example, have to supply the Solana blockchain, provide one another, these signals are made via the public internet infrastructure, said Federera. Doublezero aims to create a private network of cables to accelerate the processing performance of a blockchain.
Jump Crypto, the subsidiary of the HFT company Jump Trading, and Malbec Labs are the technical units behind Doublezero. You will not set physical cables to construct the network, said Federera. Not yet. Rather, the company trudges under the burdened range of HFT companies, private companies and even individuals to build a faster physical cable network than what is currently available for blockchains.
And to ensure that this physical network is decentralized, just like a blockchain, the foundation of Federera is planning to start its own cryptocurrency in order to reward those who contribute a bandwidth to the project.
The other co -founders of Federa are Mateo Ward and Andrew McConnell. Ward is the former CEO of Neutrona Networks, a portfolio company from Jump Trading, which specializes in building private internet networks. And McConnell was a former top engineer at Jump.
This story was originally on Fortune.com
