Leading non-fungible token (NFT) marketplace Blur has secured $20 million in funding to enhance the marketplace’s ecosystem and introduced a new Layer 2 (L2) solution.
In a Twitter (X) thread post, Blur founder Tieshun Roquerre, aka Pacman, outlined two main challenges regarding NFTs — transaction costs and institutional-grade NFT perpetual contracts, designed to meet the standards of institutional investors.
Identifying L2 as the solution, Pacman introduced a new system offering inherent advantages for both decentralized applications (dapps) and users within the Blur ecosystem. These benefits encompass safeguarding asset value, reducing transaction costs associated with NFTs, and facilitating the launch of NFT perpetual contracts.
To explain the functioning of L2, the main Ethereum blockchain, also known as “Layer 1” (L1), often encounters issues such as slower transaction times and higher fees due to high demand and congestion. L2 solutions address these challenges by processing some transactions off the main blockchain, enhancing scalability, and reducing costs.
For the development of this innovative L2 solution, Pacman deemed it essential to assemble a dedicated team and establish a new company — Blast.
When I thought through the execution, I realized a new company with a new team dedicated to the task of building the generalized L2 was required. I started that company, and it goes live today @BLAST_L2.
— Pacman | Blur.io (@PacmanBlur) November 21, 2023
Blast has already secured $20 million in funding, led by the research-driven technology investment firm Paradigm and crypto-focused VC firm Standard Crypto. Furthermore, Pacman secured an additional $40 million to contribute to the Blur ecosystem. These funds will be used to develop L2 apps for NFTs and advance NFTs on ETH L1.
This initiative reflects Blur’s ongoing commitment to enhancing experiences within the NFT community. In May, Blur introduced a new lending protocol named “Blend,” supporting various collateral, including NFTs. In February, Blur rewarded loyal NFT traders with an airdrop of over 300 million BLUR tokens.
