Arcana Network is the storage layer of Ethereum, with a privacy stack for decentralized application developers on Ethereum Virtual Machine-compatible chains. Arcana received funding from investors including Balaji Srinivasan, former chief technology officer of Coinbase; Sandeep Nailwal and JD Kanani, founders of Polygon (formerly Matic); Kendrick Nguyen, founder and CEO of Republic; and other top angels in the crypto ecosystem.
The $375,000 seed fundraise also saw participation from strategic investors and some of the biggest innovators in the blockchain industry, such as Kenetic Capital, AU21, John Lilic, Arcanum Capital, Tamar Menteshashvili from Solana, as well as Santiago Santos, general partner at ParaFi Capital; Siddharth Menon, founder of WazirX; and Aniket Jindal, co-founder of Biconomy.
The latest round, which was oversubscribed by three times, is in lieu of Arcana’s soon-to-be-launched XAR tokens.
Founded in 2019 by the CEO Mayur Relekar, and co-founders Aravindh Kumar and Abhishek Chaudhary, Arcana aims to be the most developer-friendly decentralized storage option among the other storage platforms such as InterPlanetary File System, Filecoin, Storj and Sia among others, and gives developers the capability to build more secure and privacy-preserving applications from the ground up. Relekar said,
“Data privacy and security will be first-class citizens in every app’s stack. Privacy and ownership of data will be a necessity for every product and developers need easy-to-use tools to fulfill this. Arcana is built to be privacy-first and developer-friendly.”
Arcana is working with developers across sectors from decentralized finance, nonfungible token platforms, social networks and wallets to traditional Web 2.0 products in financial technology, healthcare and enterprise software as a service, to bring privacy and security to their data.
Speaking about the funding, Nailwal said,
“Arcana’s biggest differentiation is that it is a whole suite of privacy and data management tools that are super easy to set up. Developers can look to delegate their app’s storage and access control to Arcana and focus on their core value proposition.”
Arcana goes beyond storage and is pioneering a privacy stack for developers to build privacy-preserving apps. Through Arcana’s software development kit, developers and businesses can protect the private, confidential and sensitive information of their customers, employees and business easily.
Arcana’s privacy stack offers decentralized services for identity and access management, end-to-end encryption, non-custodial key management and data storage.
Kumar added, “Large parts of the internet will be decentralized and every user will carry their own keys and identity while interacting with apps. With our implementation of the decentralized identifiers specification, we make it easy, whether it is to log in, share data, protect private information, or even trade or exchange data between apps and organizations.”
Privacy spending is on the rise
There is a growing loss of trust among users in services over the security and privacy of their data. 84% of customers are more loyal to companies with strong privacy and security controls. Data loss and breaches are on the rise, costing millions across industries.
The average spending on privacy by businesses is currently $1.2 million and growing every year. This growth is sparked by these businesses and digital products seeing the real-world return on investment that results from users being more loyal to and approving of brands that align with their privacy needs.