MegaLabs Raises $20 Million in Seed Round for Real-Time Ethereum Scaling Protocol

MegaLabs, the developer firm behind a new Ethereum scaling protocol aiming to achieve real-time processing, announced securing $20 million in a seed funding round led by Dragonfly Capital. The funding round also saw participation from Figment Capital, Folius Ventures, Robot Ventures, Big Brain Holding, Tangent, and Credibly Neutral, along with angel investors including Ethereum co-founder Vitalik Buterin, Consensys CEO Joseph Lubin, EigenLayer creator Sreeram Kannan, and Flashbots’ Hasu.

The capital raised will be utilized to further develop the MegaETH protocol, with plans to launch a testnet in the coming months. MegaETH is positioned as a real-time blockchain, emphasizing fast transaction processing capabilities, targeting a throughput of 100,000 transactions per second with millisecond-level responsiveness.

MegaLabs co-founder Yilong Li explained, “We define a real-time blockchain as one that can process transactions immediately upon arrival and produce outputs at a high frequency.” The protocol achieves its scalability through a heterogeneous blockchain architecture allowing nodes with different hardware configurations to specialize in specific tasks, and an optimized EVM execution environment enhancing throughput, latency, and resource efficiency.

MegaETH was partly inspired by Vitalik Buterin’s “Endgame” blog post from 2021, where he discusses Ethereum scaling. Buterin expressed his excitement about developers taking on the challenge of creating hyper-scalable EVM implementations, essential for Ethereum’s scalability.