Andreessen Horowitz's investment firm has invested $100 million in cryptocurrency startup EigenLayer, signaling that some of the industry's top backers are still betting on blockchain despite a sharp decline in funding for cryptocurrency projects.
EigenLayer was founded by Sriram Kannan, who was previously an associate professor at the University of Washington. The startup facilitates a process called “recovery” that has gained significant attention in recent months and is a take on the way Ethereum operates, where tokens are deposited or “stored” on the network to help validate transactions on the blockchain. The rebuilding process allows new projects built on Ethereum to enhance the blockchain security of their own networks.
