Warner Music is collaborating with Dapper Labs, the company behind CryptoKitties, to create a new blockchain called Flow.
According to a story in Forbes Thursday, Dapper Labs has garnered $11 million in funding for the project, including investment from Warner. The round is led by Andreessen Horowitz, with other major venture firms like Union Square Ventures, Digital Currency Group, Venrock and Accomplice also participating.
In an email to CoinDesk, Venrock's David Pakman said Flow is aimed at a specific games use-case:
Pakman argues that the collectibles industry needs a purpose-built blockchain if major brands like Warner and the NBA are going to participate and bring their fanbases along for the ride.
Built for developers
In a technical primer shared with CoinDesk, Dapper Labs says that Flow is especially designed for "composability" where one developer can use code from one application in a wholly other one. It writes:
Ethereum has been slowly evolving to meet growing demands for network capacity. At the same time, other blockchains with smart contract capabilities, such as Kadena, EOS and Harmony have emerged, poised to scoop up users if Ethereum stumbles in its goal to become "the world computer." Flow is the latest to join that line-up, but the first that emphasizes collectibles.
Also of note, the round includes a unique structure where backers initially receive equity that can be converted to tokens later for use on the chain (pending, as ever, approval by the Securities and Exchange Commission). This is a structure similar to what venture investors know as a convertible note, where debt is swapped for equity. All being well, Dapper Labs plans to launch Flow in 2020.
Kim Cope, product lead at Dapper Labs, speaks at Consensus 2019 (photo via CoinDesk archives)
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.