Home / Technology / Banks Want Blockchain, But Need Privacy: Soda Labs Responds
Banks Want Blockchain, But Need Privacy: Soda Labs Responds
8 Oct
Summary
- Soda Labs raises $3 million seed funding for privacy infrastructure.
- Their technology enables private computations on public blockchains.
- The system aims to make public blockchains usable for regulated finance.
Public blockchains are built on transparency, but financial institutions require privacy for sensitive transactions. Soda Labs is addressing this challenge by developing infrastructure for programmable privacy on public blockchains. The company recently secured a $3 million seed round, led by NextBlock, to expand its privacy solutions.
Soda Labs utilizes a cryptographic system called garbled circuits and multiparty computation (GC-MPC). This technology allows private computations to occur while remaining connected to public blockchain infrastructure, without exposing sensitive data. The system has already processed over 100 million transactions on the COTI network, supporting applications like tokenization and exchanges.
The company is expanding its offerings with Soda Bubble, a chain-agnostic coprocessor for programmable privacy, and the Bubble Validator Network for computation verification. Soda Labs claims significant performance improvements and cost reductions over existing alternatives, with independent security assessments already completed.
This $3 million investment will fuel commercial adoption, expand blockchain coverage, and foster integrations with financial institutions. Soda Labs aims to make public blockchain infrastructure viable for regulated financial activity, bridging the gap between blockchain's openness and institutional confidentiality requirements.
