Ripple co-founder Chris Larsen has spearheaded a $10 million seed funding round for Yellow Network, a nascent decentralized clearing network aiming to rectify current inefficiencies in cryptocurrency transactions.
Chris Larsen's Investment
Chris Larsen’s $10 million investment bolsters efforts to tackle prevalent issues in the digital asset market such as liquidity fragmentation, scalability, and capital efficiency. Other notable backers include Consensys, GSR, NxGen, MV Global, Gate Labs, ZBS Capital, Moonrock Capital, Math, Cobo, NOIA Capital, and LD Capital.
Support and Technologies
A press release distributed to Cointelegraph elucidates that Yellow Network’s decentralized clearing protocol is tailored to address critical industry challenges. The chain-agnostic network is founded on state channel technology and delivers capital efficiency, reduced latency, and scalability for the continually expanding digital asset market.
Features of Decentralized Clearing System
Decentralized clearing circumvents the need for centralized intermediaries or a clearinghouse to settle financial transactions between parties — effectively removing the middleman. This process is managed on the blockchain or through smart contracts and typically involves maintaining privacy while eliminating central authorities found in conventional financial systems. The compromise with this system is the balance between decentralization and regulated, centralized alternatives — the latter usually offering more consumer protective measures.
This investment underscores the importance of decentralized solutions in addressing crypto transaction issues and strengthens Yellow Network's position as a promising player in the digital asset market.
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