QED, an avant-garde Bitcoin scaling protocol, has successfully garnered $6 million in seed funding, with Blockchain Capital as the exclusive investor.

Initiating its fundraising journey in March and concluding in April, QED’s founder, Carter Feldman, disclosed to The Block. The financial infusion was structured as a Simple Agreement for Future Equity (SAFE) supplemented by token warrants, elevating QED’s valuation to an impressive nine-figure benchmark, at a minimum of $100 million. Feldman opted not to divulge an exact valuation figure.

This seed round propels QED’s total funding to $10.6 million, following previous financial endorsements: $3.25 million in pre-seed funding from Arrington Capital, StarkWare, Draper Dragon, among others, and $1.35 million in an angel round backed by Sparkle Ventures, supported by Animoca Brands, and additional contributors.

Deciphering QED

QED is a trailblazing Bitcoin scaling protocol dedicated to advancing zero-knowledge proof verification technology.

“Our ZK technology is unparalleled globally,” Feldman asserted. “QED facilitates innovations on Bitcoin that were previously unattainable, such as decentralized exchanges, DeFi applications, and other ventures benefiting from Bitcoin’s inherent security and decentralization.”

Feldman elaborated that QED’s technology synergizes with Bitcoin Core by leveraging zero-knowledge proofs and Taproot, an enhancement that introduced smart contracts to the Bitcoin blockchain.

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QED claims its protocol can handle over 150,000 transactions per second, striving to cultivate an ecosystem of “hyper-scalable” web3 applications, including order book exchanges, web2-scale gaming, and beyond.

“QED delivers ZK’s prowess to Bitcoin in a manner that minimizes trust while optimizing cost-efficiency, unlocking Bitcoin-native smart contracts and scaling solutions previously deemed impractical,” remarked Aleks Larsen, general partner at Blockchain Capital.

Feldman highlighted that QED doesn’t perceive other Bitcoin scaling protocols as direct competitors, critiquing their reliance on a “trust me and my friends” multi-signature security model, which users find unconvincing. Instead, QED views Ethereum and Ethereum Layer 2 networks as primary competitors due to their compelling security model, which has attracted numerous developers and users.

QED Protocol and Token Launch Timeline

Feldman indicated that a testnet for the QED protocol is slated for release within the next 3-4 months, with the mainnet deployment contingent upon achieving community consensus.

Accompanying the mainnet launch, QED will introduce its native token, designed to incentivize “proof miners” to maintain high-availability, high-performance infrastructure. “A protocol token is essential, as its value correlates with proof-miner performance,” Feldman stated.

Headquartered in Hong Kong, QED employs over 30 full-time staff within the Greater Bay Area, with imminent plans to inaugurate its first U.S. office, likely in Texas. Feldman also seeks to expand the team by recruiting talent in marketing and engineering disciplines.