According to Coda, the new funding round involved major technology investors such as Accomplice, Coinbase Ventures, Paradigm, and General Catalyst.
As specified on its website, Coda is a cryptocurrency protocol with a “tiny portable blockchain,” swapping the traditional blockchain for small cryptographic proof, which enables a cryptocurrency to be as accessible as any other app or website.
Specifically, Coda aims to address blockchain’s scalability problem by compressing blocks and providing zero-knowledge proofs rather than most crypto-related firms, whose blockchains reach hundreds of gigabytes in size, according to Coda.
Launched in September 2018, Coda's testnet compresses its entire blockchain into a one kilobyte zk-SNARK proof, which serves as a cryptographic certificate of the protocol state's integrity. This certificate, dubbed a "succinct blockchain", aims replace other gigabytes-long blockchains that are used for validation in various cryptocurrencies.
By using a constant and small-sized blockchain, Coda claims to provide the same level of security as a standard blockchain with at a fraction of the hardware requirements, enabling full verification of the chain from any device.
Blockchain’s scalability problem has been a major roadblock to mass adoption. Recently, Princeton expertise-backed blockchain startup Offchain Labs raised $3.7 million in order to develop tools to bring more scalability and privacy to enterprise blockchain implementations.