Bitfinity, a blockchain project focused on developing a Bitcoin Layer 2 network using the Internet Computer protocol, has successfully secured $7 million in funding. This investment comes from notable backers, including Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures. The funding was raised in two rounds: a $1 million seed round in 2021 and a subsequent growth round that closed in June, boosting Bitfinity's valuation to $130 million.

The project is gearing up for a significant milestone, with plans to launch its mainnet later this month or in early February. Bitfinity aims to leverage its compatibility with the Ethereum Virtual Machine (EVM) to allow Ethereum developers to create Bitcoin-enabled decentralized applications (dApps) with enhanced speed and reduced costs compared to those on Ethereum. This development is expected to significantly boost decentralized finance (DeFi) activities on the Bitcoin blockchain.

Several dApps are already building or planning to build on the Bitfinity platform, highlighting the project's potential to attract a robust developer community. Currently, the Bitfinity team consists of around 20 members, with plans to expand to approximately 25 following the mainnet launch. Additionally, multiple exchanges are anticipated to list the Bitfinity token post-launch, further integrating the project into the broader cryptocurrency ecosystem.

This funding and the upcoming mainnet launch mark significant steps forward for Bitfinity, positioning it as a key player in enhancing Bitcoin's utility through Layer 2 solutions and expanding its integration with Ethereum-based applications.