The NEAR Protocol ecosystem is splitting off a key piece with the launch of Nuffle Labs. This new company, spun out of the NEAR Foundation, has secured $13 million in funding to focus on building the next generation of blockchain infrastructure.

Nuffle Labs will take the modular product suite developed by the NEAR Foundation and turn it into a standalone business. This suite focuses on creating high-performance rollups, a key technology for scaling blockchains and enabling faster transactions.

The funding round was led by Electric Capital, a well-respected venture capital firm in the crypto space. The NEAR Foundation itself also contributed a grant to Nuffle Labs, demonstrating their continued support for this innovative project.

"We are thrilled about the incredible opportunity to grow and develop NEAR's modular product offerings at Nuffle Labs," said Altan Tutar, CEO of Nuffle Labs.

This move allows Nuffle Labs to operate independently within the NEAR ecosystem, fostering a more decentralized approach to innovation. "We're proud to support the growth of Nuffle Labs as an independent company," said Illia Polosukhin, co-founder of NEAR Protocol and CEO of NEAR Foundation.

The funding round also included participation from angel investors like Dovey Wan of Primitive Ventures and Sandeep Nailwal of Polygon, further showcasing the confidence in Nuffle Labs' vision.

This news comes amidst a surge in venture capital funding for Web3, blockchain gaming, and artificial intelligence in the first quarter of 2024. This trend marks a significant shift from the previous two years, indicating renewed optimism for these emerging technologies.

With $13 million in fresh capital and a team of experienced developers, Nuffle Labs is poised to play a major role in shaping the future of modular blockchain infrastructure. This development is a positive sign for the NEAR Protocol ecosystem and the broader blockchain industry as a whole.