Aleo, a privacy-focused blockchain, has received $ 28 million in investment to bring its non-cognitive applications to a wider market.
California-based venture capital firm Andresen Horowitz leads the private equity round. Notable contributions were also made by Coinbase Ventures, Galaxy Digital, Variant Fund, Polychain Capital, and Ethereal Ventures led by Joseph Lubin and others.
Described as “the first completely closed application platform,” Aleo uses a cryptographic technology called Zero Knowledge Security to achieve scalability, privacy, and transactional interoperability outside the network.
Perhaps the most notable zero-security blockchain use case is Zcash (ZEC), a privacy-focused cryptocurrency known for its special frequency known as zk-SNARKs.
“Privacy-preserving applications allow users to navigate digital interactions impartially, which, along with blockchain technology, will create new opportunities for value creation,” said Katie Haun, general partner of Andreessen Horowitz.
“Aleos has solved the critical scaling issues of applications built with zero knowledge technologies, so any developer or organization can build and scale a truly private application.”
Howard Wu, co-founder of Aleo, said, “Privacy will not just be an advantage, it will be a key feature” of next generation applications. The Aleo platform aims to make zero knowledge software programmable at all levels of the application. This means that apps on the platform are private by default.
Andreessen Horowitz has become an active investor in blockchain companies, recently gaining a stake in a tier-to-scale scaling solution in the NFT OpenSea and Optimism market. In April 2020, the company raised $ 515 million for its new cryptocurrency fund, easily surpassing its original target.