Quick take:
- Commonware develops open-source code allowing other developers to build their own blockchains.
- Tempo, on the other hand, offers a layer-1 blockchain designed for payments.
- As part of the deal, Tempo and Commonware will work together to develop methods to process blockchain payments more quickly.
Commonware, a crypto infrastructure company that allows developers to build their own blockchains, has raised $25 million in a funding round led by Tempo. Tempo is a layer-1 blockchain designed for payments. Founded by Stripe and the venture firm Paradigm, this is the company’s first VC bet, according to a report by Fortune.
As part of the deal, Tempo will adopt the Commonware Library and become a core contributor to its ongoing development, Paradigm Partner and CTO Georgios Konstantopoulos wrote in a blog post.
The two companies plan to use the fresh funding to advance “their shared vision” of providing high-performance, reliable infrastructure for every builder.
Commenting on the announcement, Patrick O’Grady, founder of Commonware, told Fortune, “Usage and distribution is way more important than money as a startup. If we can short-circuit that process and have a deep relationship, multi-year relationship, with a great team, instead of raising maybe a traditional round from a venture fund, that was the opportunity that Tempo presented.”
The announcement comes at a time when the institutional adoption of digital payments is gaining traction, amid the approval of the GENIUS Act in July.
By integrating Commonware Library, Tempo believes it can achieve about 250 milliseconds finality on a globally distributed permissionless payments system. “This will come via multiple innovations in consensus, cryptography, and networking,” Konstantopoulos wrote, adding that, in return, Tempo will be able to accelerate the maturation of the Commonware Library, stress testing its performance and reliability for real-world usage.
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