In recent news, the leading blockchain network in China has plans to establish a fund towards providing assistance to various start-ups. The fund (which is stated to be worth just about $50 million) will be referred to as ‘InNervation’ and shall be utilized for the purposes of making early investments in those start-ups which are focusing on constructing user-centric and blockchain-based products. DeFi protocols along with NFT marketplaces and dApps are said to be the primary focus as far as these investments may be concerned.
The Nervos Foundation thus announced its intentions of launching the aforementioned fund and will do so with collaboration and cooperation from CMB International, which is China Merchants Bank’s subsidiary.
Nervos may be understood as a Chinese blockchain-based project built on a Layer 1 and ‘Proof of Work’ blockchain protocol that is also permissionless and public in nature. It states that through its features, any and all cryptocurrency assets are allowed to be placed in storage with the same immutability as well as security and protection as that of Bitcoin. The main difference, however, is that, unlike Bitcoin, Layer 2 scaling and the enabling of smart contracts are also added features here.
Nervos had launched its own CKB (Common Knowledge Base) blockchain network all the way back in 2019, with the primary attention being given to scalability. The project had intentions of targeting decentralized finance and thus launched a fund of its own that was worth about $5 million back in February.
Fund to be deployed over the 3-year period
The fund shall be implemented over the course of 3 years, according to a recent announcement. Start-ups are set to receive initial investments, which will be between $200K and $2 million in an effort to assist project growth. This growth will be exhibited on Nervos’ own blockchain ecosystem, and priority shall be granted to those projects which already have plans towards integrating or migrating Nervos into their respective products or are building on the blockchain itself.
CMBI (which had been incorporated by Hong Kong) has been simultaneously exploring all of the various uses and functionalities of dApps through Nervos for a couple of years now and was also one of the first investors. The bank is entirely owned by CMB, which is one of China’s highest-rated commercial banks.
Lastly, Force Bridge (a sort of cross-chain bridge) is anticipated to be able to add support for various cryptocurrencies such as Tron, Bitcoin, Polkadot, and EOS by this quarter’s end.