Cosmos-based smart contract platform Neutron has acquired a 25% stake in Confio, a software company known for developing CosmWasm. This investment and strategic collaboration aims to increase CosmWasm adoption and align the development strategies of Neutron and Confio. Neutron did not disclose the investment amount.
CosmWasm can run smart contracts as a native virtual machine on Cosmos-based blockchains such as Neutron and Osmosis.
The investment plan is to drive adoption of CosmWasm and bring about technological improvements through close collaboration with Neutron. According to Neutron, it will focus on key web3 areas such as zero-knowledge proofs for scaling and privacy. “In the long term, we look forward to collaborating on more advanced features to bring to Neutron’s VMs, including native zero-knowledge verification so that privacy and rollup projects can leverage zk technology,” Avril Dutheil, a core contributor at Neutron, told The Block. “It’s a plan,” he said.
According to Neutron, the goal is to position CosmWasm as a competitive alternative to programming environments such as the Ethereum Virtual Machine.
For Neutron, this is another milestone in the post-mainnet launch roadmap, which started with the adoption of replication security in Cosmos Hub.
In June 2023, Neutron raised $10 million at an undisclosed valuation in a seed funding round led by venture firms Binance Labs and CoinFund. Currently, blockchain projects are valued at over $670 million.
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