ArkStream Capital: 2024 Q3 Investments and Updates
Investment Project Summary
In the third quarter of 2024, ArkStream Capital invested in four projects. We will provide details of each project and explain why we chose to invest in them.
Space and Time
Project Introduction
Space and Time aims to provide verifiable computing services for AI and blockchain. It combines an innovative Proof of SQL anti-tampering mechanism with a custom-built sub-second ZK (Zero-Knowledge) proof generator, allowing SQL computations to be performed off-chain. The results are then brought on-chain via Chainlink, offering decentralized, low-latency fast query services and cross-chain online query analysis data indexing. In AI applications, such as Agents, Space and Time can provide real-time data support, optimizing decision processes and enabling real-time analysis. Additionally, through ZKP technology, Space and Time ensures data verifiability, making it more efficient and trustworthy in training models and enhancing AI generation processes.
Why Invest in Space and Time
ArkStream Capital believes that high-performance verifiable computing services will become the next hot narrative, as demand for computing services has always existed, particularly for applications like AI Agent’s RAG framework. However, verifiability, an indispensable feature, has been largely overlooked. Therefore, ArkStream Capital sees vast potential in high-performance verifiable computing services.
Space and Time not only leads in ZKP technology but also excels in data warehouse and database development. This comprehensive capability ensures data verifiability and integrity while offering efficient query and analysis services to meet diverse user needs, especially in AI. The team has extensive experience in internet data services and strong technical capabilities, with deep partnerships with industry giants like Google and Microsoft, further enhancing the project’s market and technical strengths.
Mind Network
Project Introduction
Mind Network uses Fully Homomorphic Encryption (FHE) to create a secure restaking layer designed for AI, DePin networks, and Restaking AVS. Its FHE technology ensures that data remains encrypted during computation, protecting privacy and security. By introducing FHE validators and smart consensus mechanisms, Mind Network addresses the centralization and data security issues in PoS network validators’ governance and restaking processes.
Why Invest in Mind Network
Since Q4 2023, ArkStream Capital has been closely monitoring the FHE space and previously invested in Fhenix, an Ethereum Layer 2 based on FHE technology. After in-depth research, ArkStream Capital realized that FHE technology not only addresses AI challenges in Web3 but also tackles issues in PoS networks.
In traditional PoS networks, validators may copy or follow votes. Mind Network can provide a privacy voting mechanism through FHE to prevent copying and inactivity, enhancing voting security and fairness. Additionally, in high-value data storage and computation scenarios, Mind Network’s FHE technology can fully privatize data processing, meeting the high-security requirements of financial institutions and enterprises.
Mind Network has demonstrated strong community recognition and technical support. Its founder was selected as an ETH Fellow, and the project collaborates with Ethereum ecosystem initiatives such as EigenLayer and Babylon to drive privacy protection applications. It also has deep collaborations with Zama, a global leader in FHE technology.
Caldera
Project Introduction
Caldera provides a high-performance, customizable application chain rollup deployment platform. Leveraging frameworks like Arbitrum Nitro, Optimism Bedrock, zkSync ZK Stack, and Polygon CDK, Caldera allows developers to quickly deploy application-specific rollup blockchains. Each Caldera rollup includes high-performance RPC nodes, block explorers, data indexers, and settlement chain bridges. It supports faster speeds, lower fees, and allows dApps to define their gas payment tokens, greatly enhancing user convenience. Caldera Rollup integrates with over 50 leading Web3 infrastructure providers, expanding the ecosystem to include projects like Manta, ApeCoin, and Kinto.
Why Invest in Caldera
Caldera is at the forefront of the modular and application chain trend, providing a lightweight, visual, and innovative Rollup-as-a-Service (RaaS) solution. Its solution supports sub-second confirmation times, inherits the security of Ethereum and Polygon, and allows developers to customize fee structures and deploy L2 rollup blockchains without coding.
As demand for customizable Layer 2 rollup solutions grows, Caldera’s RaaS platform lowers the technical and financial barriers to blockchain development, particularly in DeFi and GameFi. ArkStream Capital believes Caldera’s strong technical capabilities, quality team, and market potential make it a worthy investment.
SatLayer
Project Introduction
SatLayer aims to provide a universal security layer for the Bitcoin ecosystem, drawing on EigenLayer’s AVS design and integrating Babylon’s Bitcoin security consensus. This innovation enables applications beyond the Cosmos network to leverage Bitcoin’s security. SatLayer also implements customizable slashing mechanisms and security level designs, offering flexible options for various applications. The project consists of three core components: Bitcoin staking, consensus acquisition for AVS applications, and node operators to ensure the proper functioning of staking and restaking mechanisms.
Why Invest in SatLayer
SatLayer’s core strength lies in its unique technical innovation, combining EigenLayer’s AVS design with Bitcoin’s security. This opens up new possibilities for cross-chain applications while providing easy staking access and customizable slashing mechanisms for different projects. ArkStream Capital believes SatLayer’s technical innovations, market potential, comprehensive ecosystem strategy, and focus on security make it a highly attractive investment opportunity.
Research Reports
- ArkStream Capital track research report: Can AI Agent become the life-saving straw of Web3+AI?
- ArkStream Capital: Why We Are Investing in Verifiable Computation and Space and Time
- ArkStream Capital: Investing in Caldera Aims to Drive Core Infrastructure in the New Cycle
- Application Chains: A Promising Future with Opportunities Ahead
Events Hosted and Attended
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ArkStream Capital is a venture capital firm specializing in early-stage investments in Web3 unicorns.
Founded by crypto experts with pedigrees from MIT, Stanford, Tencent, Google, and BlackRock, ArkStream leverages eight years of deep Web3 expertise to drive the zero-to-one growth of its portfolio companies.
ArkStream Capital is managing a portfolio of over 100 companies, including Aave, Flow, Sei, Manta, Fhenix, Merlin, Particle Network, and Space and Time.
