Clear gets $13M Series A to build high-volume transaction system on the blockchain
Clear is an early stage startup with a big ambition. It wants to build a blockchain for high-volume transaction systems like payments between telcos. Today it announced a $13 million Series A investment.
The round was led by Eight Roads with participation from Telefónica Innovation Ventures, Telekom Innovation Pool of Deutsche Telekom, HKT and Singtel Innov8.
That the strategic investors were telcos is not a coincidence. The early use case for Clear’s blockchain transaction network involves moving payments between worldwide telcos, a system that today is highly manual and prone to errors.
Clear co-founder and CEO Gal Hochberg says what his company does is to take commercial contracts and turn them into digital representations, often known in digital ledger terms as a smart contract.
“What that lets us do is create a trusted view of the true status of the relationship within the company’s business partners because they’re now looking at the same pricing and usage. They can find any issues in real time, either in commercial information or in service delivery, and they can even actually resolve those inside our platform,” Hochberg explained.
By putting these high-volume, cross-border transactions onto the blockchain with these smart contracts to act as automated enforcer of the terms, it means that instead of waiting until the end of the month to find errors and begin a resolution process, this can be done in real time, reducing time to payment and speeding up conflict resolution.
“We use blockchain technology to create those interactions in ways that it is auditable, cryptographically secure and ensures that both sides are synced and seeing the same information,” Hochberg said.
For starters, the company is working with worldwide telco companies because the number of transactions, and the way they cross borders make this a good test case, but Hochberg says this only the starting point. They are not in full-blown production yet, but he says they have proven they can process hundreds of millions of billable events.
The money should help the company get into full carrier grade production some time in the first half of this year, and then begin to expand into other verticals beyond telcos with the help of today’s investment.