Espresso Systems, a blockchain infrastructure project, has successfully raised $28 million in a Series B funding round led by Andreessen Horowitz (a16z), a prominent investment firm. The company’s objective is to enhance interoperability between Ethereum (ETH) rollups by establishing a marketplace where rollups can sell the right to construct their blocks to interested parties.
Rollups are solutions that execute transactions outside of Ethereum’s blockchain but record the transactional data. Espresso Systems highlights that their recent Series B round saw participation from notable entities such as Polygon, Taiko, o1Labs, StarkWare, Offchain Labs, and strategic investors from over 30 ecosystem projects. In total, the project has raised $32 million, including funds from a seed round in 2020 and an Early Stage VC round in 2022.
The company expresses its gratitude for the additional funding, explaining that it will be utilized to further develop their product, make substantial investments in the broader rollup ecosystem, and lay the foundation for the community to eventually operate and govern Espresso as a fully decentralized, impartial public good for all Layer 2s, ranging from basic rollups to validiums. As part of their expansion efforts, the company plans to aggressively hire new talent.
There are two primary types of rollups: optimistic and ZK. Optimistic rollups assume the validity of transactions automatically, while ZK rollups conduct computations off the chain and subsequently submit a validity report. Espresso Systems emphasizes that their marketplace allows proposers to bid on multiple rollup blocks, enabling them to become shared proposers for multiple chains simultaneously and facilitating cross-chain activity.
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