The venture capitalist arm of the world’s largest crypto exchange by volume says that it’s investing into a modular Cosmos (ATOM)-based layer-1 project.
In a new blog post, Binance Labs says it’s investing an unspecified amount into Particle Network as a means of addressing user and liquidity fragmentation, which is when available trading volume is spread out over multiple networks, resulting in splintered liquidity pools.
“The number of blockchain networks is rapidly increasing, with a growing proliferation of layer-1 and layer-2 chains across various ecosystems. This chain-dense approach to scalability leads to highly fragmented user bases and liquidity, resulting in poor user and developer experiences alongside significant friction/costs.
Particle Network is a modular Layer 1 blockchain that provides Chain Abstraction infrastructure to address liquidity and user fragmentation in a multi-chain world. They achieve this through four core features, namely Universal Accounts, Universal Liquidity, Universal Gas, and the Particle layer-1 chain.”
Particle Network would allow customers to have a single user account and balance across all blockchains, ridding the need to manually bridge crypto assets.
According to the press release, Particle Network’s mainnet will launch sometime later this year, its mission being to unify the Web3 space seamlessly.
As stated by Yi He, co-founder of Binance and Head of Binance Labs,
“Binance Labs is committed to supporting founders who are building innovative products to onboard the next billion users into Web3. We look forward to supporting Particle Network in their mission to create a smoother and more intuitive user experience for everyday users.”