An Israeli startup has secured $70 million for the development of blockchain chips. The business wants to transform how blockchain technology is used.

An Israeli startup has secured $70 million in fresh funding to develop blockchain chips. The company aims to revolutionize the way blockchain technology is used by creating chips specifically designed for blockchain applications. All users will need the most effective access to the features of blockchain technology as its usage spreads. The creation of blockchain chips as energy-efficient accelerators has been one reaction to this. The blockchain chip startup firm Chain Reaction, headquartered in Tel Aviv, said on February 23 that it had received $70 million to grow its technical staff in preparation for the development of its next chip.
The new chip will be a "completely homomorphic encryption" semiconductor that allows the user to operate on data while the chip is encrypted, according to Chain Reaction co-founder and CEO Alon Webman. He went on to note that the use of cloud services by governments and significant companies, such as the defense industry, is now restricted because of security issues. This could be assisted by an encrypted chip that permits access to data that is being encrypted. According to Webman, Chain Reaction plans to introduce the chip as soon as the end of 2024.

In the first quarter of 2023, Chain Reaction plans to begin mass producing Electrum, the company's current blockchain chip. The chip is made to assist effective and speedy hashing. Moreover, it can be used to mine cryptocurrency. In February 2022, the software company Intel also introduced a blockchain processor created by Nvidia to accelerate computationally intensive blockchain processes that uses a lot of energy.