The firm that created the Nocturne privacy on-chain accounts system, Nocturne Labs, has completed a seed investment round that brought in $6 million. Along with participation from other well-known Ethereum ecosystem investors like Bankless Ventures, HackVC, Robot Ventures, and co-founder Vitalik Buterin, the round was co-led by Bain Capital Crypto and Polychain Capital. As stated by Luke Tchang, co-founder and CEO of Nocturne Labs, the money would be utilised to cover legal fees as well as to carry out further blockchain development.
In order to introduce private accounts to a public blockchain, the Nocturne protocol—which is anticipated to launch in the second part of November—combines blockchain technologies including account abstractions, stealth addresses, and zero-knowledge proofs. Although the accounts have built-in asset privacy, they will operate like typical Ethereum accounts do. According to Tchang, Nocturne might face competition from other privacy-focused protocols like Railgun or Aztec. He also underlined how crucial it is to collaborate with authorities and figure out how to implement privacy in a way that complies with laws. “Having privacy is not an impossible thing to ask for,” Tchang said.