Nirvana has secured $6 million in seed funding to build encryption cloud computing infrastructure for Web 3 companies.

Nirvana's cloud computing service specializes in handling blockchain workloads, with a vision to reduce the reliance of the Web 3 ecosystem on centralized cloud services like AWS and Google Cloud. CEO Dan Burke told Blockworks that Nirvana's seed round financing was $1.7 million, and Nirvana has raised an additional $6 million from the seed round led jointly by Jump Crypto and Crucible Capital, with participation from RW3 Ventures, Castle Island, and Hash3 VC. The total fundraising amount for Nirvana Labs has reached $11.8 million.

Nirvana's press release states that since January 2024, the company's revenue has grown 26 times, reaching a scale of having 11 data centers worldwide, managing 2,000 TB of blockchain data, with clients including BitGo, Goldsky, Thirdweb, Paxos, and Flipside.

Nirvana solves the highly centralized cloud computing problems of Web 3

Nirvana hopes to address the issue of excessive reliance on centralized cloud computing systems in blockchain ecosystems like Ethereum, which threatens the essence of decentralization. Using centralized cloud system services creates vulnerabilities when offline (Weak Point), making Ethereum unusable. Most of Ethereum's execution nodes are actually hosted on cloud servers, and if too much of the Ethereum infrastructure is hosted by a single provider or data center, any issue (such as power outages or other technical problems) could potentially take down a large number of services built on it.

CEO Burke stated that Nirvana hopes to attract Web 3 blockchain teams from general cloud providers like Amazon Web Services (AWS) and Google Cloud. Nirvana is not building a decentralized computing platform like Golem, nor is it constructing a decentralized storage solution like IPFS. Instead, Nirvana adopts a model where each server accommodates a single client, specifically providing Bare Metal Infrastructure services to Web 3 companies.

Characteristics of Nirvana

Many blockchain node operators use cloud systems such as AWS and Google Cloud, which can use servers and storage without installing their own physical hardware, but the reliance on centralized cloud computing systems is relatively risky and costly for operating crypto industry startups, especially on high-throughput chains like Solana. Meltem Demirors, co-founder and partner of Crucible Capital, said that a single Solana node has an archive node capacity of 700 TB, which is a staggering amount of storage, and AWS and Google Cloud currently account for more than 80% of the cloud systems market, which makes no sense, and AWS's NVME storage cost last month was almost equal to the cost of buying hardware directly.

Nirvana uses metal bare metal infrastructure (Bare Metal Infrastructure), with each server accommodating a single client, which differs from traditional cloud providers with centralized computing. Nirvana also features CPUs optimized for the high workload demands faced by blockchain operators, as well as a diversity of data centers, making the blockchain more resilient to data interruption risks.

Demirors stated that Nirvana's crypto cloud services are much cheaper than AWS or Google Cloud. The business needs of Nirvana come from infrastructure and technology providers such as BitGo and Fireblocks, as well as foundations like Avalanche and Berachain.

This article Nirvana obtained $6 million in seed round financing to build crypto cloud computing infrastructure for Web 3 companies, first appeared in Chain News ABMedia.