Monad Labs, a blockchain company, has announced the development of a new layer-1 (L1) Ethereum Virtual Machine (EVM) compatible blockchain. This blockchain, called Monad, aims to address the low throughput of EVM-compatible blockchains and increase the transactions per second (TPS) for EVM-based applications.

The EVM is widely recognized as the standard for web3, with over 96% of all capital in decentralized finance (DeFi) being in EVM apps. However, existing EVM-compatible blockchains have low throughput, with Ethereum supporting only around 10 TPS and no EVM rollup exceeding 50 TPS.

To address this issue, Monad Labs has secured $225 million in funding, led by tech investment firm Paradigm. This funding will enable the company to expand its team and production capabilities to create a low-level optimization EVM-compatible blockchain with improved TPS.

Monad Labs has already achieved a significant milestone with its “devnet,” an internal and private environment. The devnet has achieved a benchmark of 10,000 TPS, using recent Ethereum history. This devnet is the first step towards an open public testnet, indicating that there is more to come.

The testnet developed by Monad Labs is essentially an upgraded version of the Ethereum blockchain, optimized for higher TPS. The new round of funding will allow Monad Labs to hire more developers and support a wide range of DeFi web3 applications on their blockchain.

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