Seismic is developing an encrypted blockchain to deploy on-chain privacy at the application level, going beyond wallet-level encryption, which can only hide user balances and identities.

The Web3-focused investment firm, a16z crypto, led a $7 million funding round for the encrypted blockchain developer Seismic, according to the company's announcement on Thursday. Other investors participating in this funding round include Polychain, 1kx, dao5, and NGC.

A16z crypto is the investment arm of the venture capital firm Andreessen Horowitz, focused on Web3.

Seismic is building an encrypted blockchain to deploy on-chain privacy at the application level, going beyond wallet-level encryption, which can only hide user balances and identities. By creating a base layer for encryption at the application level, Seismic aims to enable new on-chain applications for financial relationships, social experiences, and other efforts, according to Seismic's announcement.

"The standard approach to building private smart contract platforms is for clients to generate proofs of correct execution on their own machines, and then share those proofs with the decentralized network. This ensures correctness but reduces composability," Ali Yahya, General Partner at a16z crypto, wrote on the X platform. "Seismic provides a new approach. It is already live on Devnet and enabling sample applications with a novel mechanism design."

In addition to leading the new funding round for Seismic, a16z crypto has also led recent funding rounds for other Web3 startups. On January 17, a16z crypto and Blockchain Capital co-led a $10 million seed round for the open-source protocol Merit Systems.

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The article a16z Crypto leads $7 million round for Seismic first appeared on CoinMoi.