High-frequency traders have long dominated Wall Street by executing trades at breakneck speeds to secure profits. Their success is based on private Internet networks that give them an advantage in the financial markets. Now, a new crypto project, DoubleZero, is bringing the same high-speed network concept to blockchain technology.
Bringing High Frequency Trading Technology to Blockchain
DoubleZero is designed to improve the speed of blockchain by using advanced network technologies that high-frequency trading (HFT) firms have relied on for years. “We can use a completely different set of technologies that have been standard in the high-frequency trading world but have never been applied to blockchain before,” Austin Federa, co-founder of DoubleZero and former Solana Foundation executive, said in an interview with Fortune.
Like the companies featured in Michael Lewis’ famous book Flash Boys, DoubleZero is obsessed with speed. The project has already attracted significant investment, securing $28 million in seed funding from leading cryptocurrency companies including Multicoin Capital and Dragonfly Capital. Other backers include Foundation Capital, Reciprocal Ventures, DBA, Borderless Capital, Superscrypt and Frictionless. Investors received token warrants, promising them allocations of a future cryptocurrency tied to the project.
Building a faster, private Blockchain network
Blockchains, such as Solana and Ethereum, operate similarly to cloud computing platforms such as Amazon Web Services or Google Cloud, with physical servers that handle transactions and run applications. However, blockchain networks currently rely on a public Internet infrastructure for communication between servers, which slows down processing speeds.
DoubleZero aims to solve this problem by creating a high-speed private network for blockchain transactions. Instead of relying solely on the existing public Internet, DoubleZero will connect underutilized bandwidth from HFT companies, private companies, and even individual taxpayers. This approach will dramatically improve the speed of transactions and the overall efficiency of the blockchain.
Jump Crypto and Malbec Labs lead engineering efforts
The engineering expertise behind DoubleZero comes from Jump Crypto, the digital assets division of high-frequency trading firm Jump Trading, and Malbec Labs. Unlike traditional telecommunications companies, DoubleZero isn’t laying new physical cables… yet. Instead, it is forming a decentralized network by leveraging existing bandwidth sources, ensuring a more efficient and cost-effective solution.
To encourage participation, DoubleZero plans to launch its own cryptocurrency as a rewards system. Those who contribute bandwidth to the network will be compensated with tokens, promoting a decentralized infrastructure and maintaining high-speed performance.
The team behind DoubleZero
DoubleZero was founded by Austin Federa, Mateo Ward, and Andrew McConnell, each of whom brings extensive experience in networking and blockchain technology.
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Matthew Ward is the former CEO of Neutrona Networks, a Jump Trading portfolio company specializing in private Internet infrastructure.
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Andrew McConnell He was a leading engineer at Jump Trading and contributed to its high-speed financial technology.
Together, they aim to redefine blockchain connectivity by applying proven networking strategies from the financial world to the decentralized space.
The Future of Blockchain Speed
DoubleZero’s innovative approach could significantly improve blockchain efficiency, making decentralized applications and financial transactions faster and more reliable. As investments increase and its technology develops, DoubleZero could become a game-changer in blockchain infrastructure, offering speeds that rival traditional financial networks.
With backing from industry giants and a strong focus on speed, DoubleZero is poised to set a new standard for blockchain performance.
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