Analog Secures $16M Funding for Cross-Chain Communication Tools

Analog, a Web3 platform, has raised $16 million in funding to support the development of its cross-chain communication tools for developers. With this funding round, the startup’s valuation now stands at $120 million. The round saw participation from various crypto projects and Web3 funds, including Near, Wintermute, Orange DAO, Benqi Finance, and Quantstamp. Venture capital firms Tribe Capital, Alumni Ventures, and NGC Ventures also took part, along with former Coinbase executive Balaji Srinivasan and Mike Novogratz’s family office, Samara Asset Group.

Analog was founded in 2021 by Victor Young and Sanchal Ranjan. Young recognized the need for cross-chain data triggers for smart contract execution while working on algorithmic trading bots. This realization led to the creation of Analog. The startup’s team has previous experience working on projects in the Polkadot ecosystem, such as Moonbeam and Enjin, as well as cross-chain ecosystems like Cosmos and Chainlink.

Analog is now focused on building a developer-facing product that allows for querying data from smart contracts across different blockchain networks. This product will simplify the process of pulling and analyzing on-chain data. For example, a cross-chain decentralized exchange aggregator would need to retrieve data for each specified pair from different decentralized exchanges on various chains to provide users with the best routes and accurate price discovery.

In addition to its cross-chain data querying product, Analog is also introducing a software development kit for general message passing. This kit enables communication and interoperability across blockchains for asset transfers, automated market makers, decentralized exchanges, and non-fungible tokens. The aim is to address the growing need for composability as Web3 becomes multichained with the emergence of more layer 1 and layer 2 solutions.

The field of cross-chain communications is expanding as Web3 continues to grow. Other projects working on cross-chain technology include LayerZero and Axelar, both of which are developing solutions to facilitate communication between different networks. Analog sets itself apart by offering a comprehensive toolkit that combines various cross-chain development features into a single platform, rather than relying on third-party providers like oracles. The startup takes a developer-focused approach and aims to showcase the versatility of its product across different verticals.