Coinbase’s Fred Ehrsam Backs Ethereum Validation Startup

Coinbase Fred Ehrsam Blockchain Payments Ethereum

The co-founder of Coinbase, Fred Ehrsam, has come out in support of blockchain payments startup DIRT as a participant in their $3-million seed funding round.

The company is developing a protocol for automatically validating information between multiple data sets, powered by the ethereum blockchain.

The San Francisco-based startup won investment from the likes of Zhenfund, InBlockchain, Pantera Capital and Digital Currency Group. The firm is now expected to use the funds toward their launch, scheduled for sometime over the next couple of months.

Additionally, they will launch a token for the DIRT platform, based on the ERC-20 standard.

DIRT founder Yin Wu described their aim to establish a token-curated registry, which would allow dApps developers to verify data, based on a decentralized model. The tokens will be used to vote for the validity of different records, in a unique validation model that bears some resemblance to Wikipedia.

Wu explained the vote mechanism, and how users can initiate challenges to ensure the veracity of any data set within the protocol.

“If anyone in the network finds misinformation, they can also challenge the data set and say this is incorrect. In order to initiate a challenge, you need a stake token. The challenge then begins with a vote. Anyone in the network can vote with tokens ... Whoever wins the vote wins the tokens; if you lose the vote or voted for the wrong side, then you are penalized.”

With the token being used to “adjudicate whether information is correct,” the firm is still considering how best to distribute the tokens. However, Wu has suggested that the firm will seek as wide a distribution as possible for the token when the platform launches later in the year.

The company is also thought to be working on a decentralized app of its own, although it has kept the details under wraps for now. Nevertheless, the funding round is a significant vote of confidence in the startup, and equips them with the resources they need to get their platform off the ground.

With an influential backer in Fred Ehrsam, and expertise from a number of specialist crypto sector investors, DIRT looks poised to be another influential launch in the cryptocurrency and blockchain space.