Nirvana Secures $6 Million in Seed Round Funding to Build Cryptographic Cloud Computing Infrastructure for Web 3 Companies
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Nirvana Cloud Computing Service Specializes in Handling Blockchain Workloads, Aiming to Reduce Web 3 Ecosystem’s Reliance on Centralized Cloud Services like AWS and Google Cloud. CEO Dan Burke told Blockworks that Nirvana’s seed round financing was $1.7 million, and Nirvana raised an additional $6 million from the seed round financing led by Jump Crypto and Crucible Capital, with RW3 Ventures, Castle Island, and Hash3 VC participating in this round of financing. Nirvana Labs’ total funding has reached $11.8 million.
Nirvana Press Release stated that since January 2024, the company’s revenue has grown 26 times, with a scale of owning 11 data centers worldwide, managing 2,000 TB of blockchain data, and customers including companies like BitGo, Goldsky, Thirdweb, Paxos, and Flipside.
Nirvana Solves the Highly Centralized Cloud Computing Problem of Web 3
Nirvana hopes to address the problem of blockchain ecosystems like Ethereum relying too much on centralized cloud computing systems, which threatens the decentralized nature. Using centralized cloud system services, vulnerabilities can arise when offline, leading to Ethereum being unusable. Most of Ethereum’s execution nodes are actually hosted on cloud servers. If too much of Ethereum’s infrastructure is hosted by a single provider or data center, any issue (such as power outages or other technical problems) could potentially cause a large number of services built on it to go offline.
CEO Burke stated that Nirvana aims to attract Web 3 blockchain teams from general cloud providers like Amazon Web Services (AWS) and Google Cloud. Nirvana does not build a decentralized computing platform like Golem or construct a decentralized storage solution like IPFS. Instead, Nirvana adopts a model where each server accommodates a single client, providing Bare Metal Infrastructure services specifically to Web 3 companies.
Nirvana’s Features
Many blockchain node operators use cloud systems like AWS and Google Cloud, which allow the use of servers and storage without installing physical hardware. However, this reliance on centralized cloud computing systems brings risks and high costs to operating crypto-industry startups, especially on high-throughput chains like Solana. Crucible Capital co-founder and partner Meltem Demirors stated that a single Solana node’s archival node capacity is 700 TB, which is a staggering amount of storage. AWS and Google Cloud currently account for over 80% of the cloud system market share, which is unreasonable, as the NVME storage cost on AWS last month was almost equivalent to purchasing hardware directly.
Nirvana uses Bare Metal Infrastructure, with each server accommodating a single client, unlike traditional cloud providers offering centralized computing. Nirvana also has CPUs optimized for the high workload that blockchain operators face, as well as data center diversity, making blockchains more resilient to data interruptions.
Demirors mentioned that Nirvana’s encrypted cloud service is much cheaper than AWS or Google Cloud. Nirvana’s business demands come from infrastructure and technology providers like BitGo and Fireblocks, as well as foundations like Avalanche and Berachain.
Risk Warning
Cryptocurrency investment carries a high level of risk, with prices fluctuating dramatically, and you may lose your entire capital. Please carefully assess the risks.
