Decentralized storage platform CESS raises $8M from 13 VC funds

Decentralized storage platform Cumulus Encrypted Storage System (CESS) raised approximately $8 million from more than 13 venture capital firms, according to a Dec. 28 announcement.

The funds will be used to “drive technological advancements, expand global operations and strengthen CESS’s position in the decentralized infrastructure sector,” a CESS representative told Cointelegraph.

Substats CESS block explorer. Source: CESS

According to its documents, CESS is both a blockchain network and decentralized storage system. It allows files to be stored on multiple nodes and identified by their hash.

It contains four components or “layers,” including blockchain, data storage, content distribution, and application layer.

It uses a variety of cryptographic protocols to help ensure that data stays permanent, including Proof of Reduplication and Recovery (PoDR²) and Multi-Format Data Confirmation (MDRC). CESS aims to be used in large-scale commercial applications.

According to the announcement, HTX Ventures, Infinity Ventures Crypto, DWF Labs, Mentha Partners, Vespertine Capital, Web3 Foundation, Singchain Investment, 7 O’Clock Capital, SolrDAO, FishDAO, OneBlock+, Winkrypto, and Polkadot Ecology Research Institute participated in the raise.

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CESS co-founder and chairman Nicholas Zaldastani claimed that the funds will be used to further develop the protocol:

“This funding will enable us to continue our mission of providing the next-gen of global decentralized data services for Web3, which includes support for large-scale commercial use cases that require high-end security, performance, storage, CDN, high-frequency trading and millisecond data retrieval.”

Demand for decentralized storage space has grown rapidly over the course of 2023.

Filecoin saw its utilization reached greater than 7% in the second quarter, and Arweave’s transaction volume surged by over 717% over the course of the year, according to data from blockchain analytics platform ViewBlock.

CESS claims that its protocol can be used in a variety of future applications, including “Metaverse, NFT, DeFi, Streaming media, Social media, Gaming, [and] RWA (real world assets).”

(Cointelegraph)