Paradigm, a prominent crypto venture capital firm, has announced the launch of the Ithaca project, backed by a $20 million investment.
The project aims to revolutionize Layer-2 blockchain networks with new technology to improve scalability and user experience. Matt Huang, co-founder of Paradigm, will be chairman of Ithaca, which now joins Paradigm’s growing portfolio of blockchain companies.
Ithaca unveils Odyssey: A next-generation layer-2 network
Ithaca is spearheading the development of Odyssey, a next-generation Layer-2 network described as a blockchain “from the future.” The network integrates advanced technologies like Reth, OP Stack, and Conduit, which are designed to enhance scalability and stability for blockchain applications. The company aims to make the platform user-friendly, even for those unfamiliar with technical processes such as setting up custom RPCs or bridging ETH.
The Odyssey testnet is expected to serve as a precursor to Ithaca’s larger goals. The network’s architecture incorporates powerful Ethereum Improvement Proposals (EIPs) and the Reth SDK, creating a streamlined developer environment. This open-source approach is expected to foster rapid innovation in decentralized applications, making it easier for developers to build and ship products faster.
Ithaca’s role in paradigm’s portfolio
Though Ithaca will operate as an independent company, it will be crucial to Paradigm’s broader investment strategy. Odyssey, Ithaca’s core product, is poised to compete with other Layer-2 solutions like Ethereum-based Polygon and Bitcoin-based Lightning Network. Ithaca joins other leading blockchain companies in Paradigm’s portfolio, including Uniswap, Coinbase, and Flashbots.
Paradigm’s CTO, Georgios Konstantopoulos, emphasized that Ithaca’s goal is to build a full suite of products and tools that simplify development processes for developers and reduce friction for end-users. He highlighted that Ithaca’s Layer-2 technology includes features aligned with future Ethereum development, some of which other teams have not yet implemented.
Advancing Blockchain scalability and usability
Layer-2 networks are critical in addressing scalability issues for major blockchains like Ethereum. By sitting on top of Layer-1 blockchains, these networks allow a higher volume of transactions to be processed quickly and cost-effectively. Ithaca’s Odyssey network will contribute to this growing field, offering an alternative with advanced features that have yet to be seen in other Layer-2 projects.
Despite the launch of Ithaca, Konstantopoulos made it clear that Paradigm will continue its research and development efforts. The creation of Ithaca should not be viewed as a shift in Paradigm’s broader vision but as a complementary effort to accelerate the speed and efficiency of crypto technologies. As blockchain technology evolves, Ithaca’s Odyssey project could play a pivotal role in shaping the future of decentralized applications and network scalability.