Multicoin Capital Invests $10 Million in Permissionless Labs to Revolutionize CDNs with Blockchain

Multicoin Capital Backs Innovative Internet Infrastructure Startup

In a significant move within the crypto venture landscape, Multicoin Capital has spearheaded a $10 million funding round for Permissionless Labs, the creators of Pipe, an innovative project aimed at revolutionizing content delivery networks (CDNs) through the use of blockchain technology and token incentives.

Pipe Network targets a critical yet often overlooked component of the modern internet infrastructure. As countless websites strive to deliver content swiftly, they often depend on intricate networks of relay servers that ensure proximity to end-users. These relay servers are essential for minimizing latency and ensuring that web content loads efficiently.

Currently, a select few dominant players in the industry, such as Cloudflare and Akamai, control the majority of CDN services, ensuring optimal performance. While these systems are effective, Permissionless Labs believes that integrating crypto incentives can encourage everyday individuals to contribute their computing resources, thereby creating a more competitive and decentralized alternative.

This brings us to the concept of Decentralized Virtual Infrastructure Networks (DeVIN), which represents a new evolution in the decentralized infrastructure space, following the previous trend of Decentralized Physical Infrastructure Networks (DePIN). A notable example of this trend is Helium, which utilized tokens to motivate users to set up Wi-Fi routers in diverse locations.

According to CEO David Rhodus, the vision behind Pipe’s DeVIN framework is to enable rapid scaling of CDN nodes precisely where they are most needed. By allowing users to share their existing computing power, the network can facilitate quicker access to cached content, overcoming challenges posed by geographical distances between users and content servers.

The project is set to leverage the Solana blockchain for its operations, as stated in a recent press release. Furthermore, a testnet is expected to be unveiled at the upcoming Breakpoint conference in Singapore, marking a significant milestone in the project’s development.