Microsoft dives into Web3 with investment in Ethereum co-founder’s start-up ConsenSys

Microsoft dives into Web3 with investment in Ethereum co-founder’s start-up ConsenSys

Blockchain start-up ConsenSys has raised $450 million in a new round of funding that more than doubles its valuation to $7 billion. The cash injection was led by ParaFi Capital, ConsenSys said Tuesday, with , Japan's and Singapore's Temasek also joining as new investors in the company. New York-headquartered ConsenSys was founded in 2014 by Joseph Lubin, a co-founder of Ethereum. Ethereum is the blockchain platform behind , the world's second-biggest cryptocurrency. Whereas is mostly used for transactions, Ethereum can be used to create decentralized applications, or dapps — think Facebook or TikTok, but on the , a shared record-keeping system for crypto transactions. ConsenSys develops software that runs on the Ethereum network. It marks a rare crypto-related bet from Microsoft. The company previously led an , a start-up also co-founded by Lubin. Microsoft's involvement highlights growing interest from the world's largest tech firms in Web3, a loosely-defined term that refers to efforts to create a decentralized version of the internet based on blockchain technology. It's a term that has attracted a lot of chatter — and money — in Silicon Valley. Blockchain start-ups raised a funding globally last year, according to CB Insights data. Other tech giants exploring Web3