 | |
| Company type | Corporation |
|---|---|
| Industry | Blockchain software |
| Founded | October 2014 [1] |
| Founders | Joseph Lubin |
| Headquarters | , United States |
Number of employees | 500+ (2020) |
| Website | consensys |
Consensys is a private blockchain software technology company founded by Joseph Lubin and based in Fort Worth.
Joseph Lubin founded ConsenSys AG in early 2015 as a software foundry to develop decentralized software services and applications that operate on the Ethereum blockchain. [2] [3] On October 31, 2018, ConsenSys acquired Planetary Resources, an asteroid mining company. [4] In December 2018, ConsenSys announced a restructuring with projected layoffs of thirteen percent of its 1,200 staff, [5] [6] and in February 2020 announced the layoffs of a further 14% of staff. [7] In 2020, ConsenSys AG spun out [8] several of its infrastructure projects into a separate company, Consensys Software Inc. (now commonly simply referred to as "Consensys"). ConsenSys AG rebranded as Consensys Mesh the same year. In August 2020, Consensys acquired banking blockchain platform Quorum from JPMorgan Chase & Co. Financial terms of the deal were not disclosed. [9] In November 2021, Consensys raised $200 million at $3.2 billion valuation from Animoca Brands, Coinbase Ventures and HSBC among others. [10] In March 2022, Consensys raised $450 million in a new round led by ParaFi Capital, with Microsoft, SoftBank, and Temasek also joining as new investors in the company. [11] In June 2023, Consensys launched a brand refresh where they introduced a new company narrative, logo, and an updating of the name to remove the camelcase from ConsenSys to Consensys.
Consensys is involved in many different projects and services for blockchain uses and applications.
MetaMask is an Ethereum wallet application which allows users to store and transfer cryptocurrencies and tokens, as well as access and interact with decentralized applications built on the Ethereum blockchain. The software was originally MIT-licensed as open source on desktops as a browser extension, but was relicensed in 2020 under a custom proprietary license. [12] It can also be used through a proprietary mobile app. [13]
Infura is a blockchain node infrastructure service that allows apps and developers to get data from, and broadcast transactions to, the Ethereum blockchain. Infura's network is used as a backend for Ethereum services and applications, including MetaMask and many others not associated with Consensys. [14] [15]
The company has started or invested in several different projects that are not considered to be core to their business, have been spun out into more independent entities, or are not wholly owned by Consensys. [5] [6] Some of these include Meridio, a platform used to create, manage, and trade fractional-share ownership in real estate assets, and Gnosis Safe, a platform for managing digital assets securely on ethereum. [16] [17] [5] [18] [19]
Civil Media, a Consensys-backed company that claims to use cryptocurrency to save journalism sold CVL tokens to the public in an ICO in October 2018. Civil was able to raise $1.8 million, less than the $8 million soft cap. [20]
It was later revealed that Consensys was the largest buyer of CVL tokens, buying 80% of the CVL tokens that went on sale. [21]
Consensys has been involved in multiple controversies and lawsuits. These include a High Court challenge in Ireland against the ruling of the Workplace Relations Commission. [16] Separately, the 2020 sale of MetaMask and other assets from its Swiss parent company to its US entity has been litigated over alleged irregularities in corporate governance. [22] On June 28, 2024 the US Securities and Exchange Commission announced that they had charged Consensys with engaging in the unregistered offer and sale of securities through MetaMask Staking, and operating as an unregistered broker through MetaMask Staking and MetaMask Swaps. [23] In an attempt to preempt the SEC's suit, on April 25, 2024 Consensys had sued the SEC and its commissioners in the Northern District of Texas asking the court to declare that MetaMask Swaps does not make Consensys a broker-dealer; MetaMask Staking is not an offering of securities; and that Ether (ETH), the native token of the Ethereum blockchain, is not a security. [24]
Proof-of-stake (PoS) protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work (POW) schemes. The first functioning use of PoS for cryptocurrency was Peercoin in 2012, although the scheme, on the surface, still resembled a POW.
Ethereum is a decentralized blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.
A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization managed in whole or in part by decentralized computer program, with voting and finances handled through a blockchain. In general terms, DAOs are member-owned communities without centralized leadership. The precise legal status of this type of business organization is unclear.
A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Since each block contains information about the previous block, they effectively form a chain, with each additional block linking to the ones before it. Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
Joseph Lubin is a Canadian-American businessman. He has founded and co-founded several companies, including the Swiss-based EthSuisse, contributing heavily to Ethereum, the decentralized cryptocurrency platform. Lubin is the founder of ConsenSys, a Brooklyn-based software production studio.
The DAO was a digital decentralized autonomous organization and a form of investor-directed venture capital fund. After launching in April 2016 via a token sale, it became one of the largest crowdfunding campaigns in history, but it ceased activity after much of its funds were taken in a hack in June 2016.
A decentralised application is an application that can operate autonomously, typically through the use of smart contracts, that run on a decentralized computing, blockchain or other distributed ledger system. Like traditional applications, DApps provide some function or utility to its users. However, unlike traditional applications, DApps operate without human intervention and are not owned by any one entity, rather DApps distribute tokens that represent ownership. These tokens are distributed according to a programmed algorithm to the users of the system, diluting ownership and control of the DApp. Without any one entity controlling the system, the application is therefore decentralised.
Unikrn Inc. is an esports betting and entertainment media company based in Miami, Florida.
Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, ADA.
An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. It is often a form of crowdfunding, although a private ICO which does not seek public investment is also possible. In an ICO, a quantity of cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ether. The tokens are promoted as future functional units of currency if or when the ICO's funding goal is met and the project successfully launches.
Gavin James Wood is an English computer scientist, a co-founder of Ethereum, and creator of Polkadot and Kusama.
Polkadot is a blockchain platform. The native cryptocurrency for the Polkadot blockchain is the DOT.
The Open Network is a decentralized computer network consisting of a layer-1 blockchain with various components. TON was originally developed by Nikolai Durov who is also known for his role in creating the messaging platform, Telegram. Telegram had planned to use TON to launch its own cryptocurrency (Gram), but was forced to abandon the project in 2020 following an injunction by US regulators. The network was then renamed and independent developers have created their own cryptocurrencies and applications using TON. Toncoin, the principal token of The Open Network is deeply integrated into the Telegram messaging app, used for paying rewards to creators and developers, buying Telegram ads, hosting giveaways or purchasing services such as Telegram Premium.
TRON is a decentralized, blockchain-based operating system with smart contract functionality, proof-of-stake principles as its consensus algorithm and a cryptocurrency native to the system, known as Tronix (TRX). It was established in March 2014 by Justin Sun and since 2017 has been overseen and supervised by the TRON Foundation, a non-profit organization in Singapore, established in the same year. It is open-source software.
Amanda Claire Cassatt is an American entrepreneur, marketing executive and author. She was also the chief marketing officer at ConsenSys from 2016 until July 2019. Cassatt is the founder and CEO of Serotonin, a Web3 services company.
Decentralized finance provides financial instruments and services through smart contracts on a programmable, permissionless blockchain. This approach reduces the need for intermediaries such as brokerages, exchanges, or banks. DeFi platforms enable users to lend or borrow funds, speculate on asset price movements using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. The DeFi ecosystem is built on a layered architecture and highly composable building blocks. While some applications offer high interest rates, they carry high risks. Coding errors and hacks are a common challenge in DeFi.
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications. MetaMask is developed by Consensys, a blockchain software company focusing on Ethereum-based tools and infrastructure.
Solana is a blockchain platform which uses a proof-of-stake mechanism to provide smart contract functionality. Its native cryptocurrency is SOL.
Web3 is an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies, and token-based economics. Some technologists and journalists have contrasted it with Web 2.0, wherein they say data and content are centralized in a small group of companies sometimes referred to as "Big Tech". The term "Web3" was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms. The concepts of Web3 were first represented in 2013.
Polygon is a blockchain platform which aims to create a multi-chain blockchain system compatible with Ethereum. As with Ethereum, it uses a proof of stake consensus mechanism for processing transactions on-chain. Polygon's native token is POL, an ERC-20 token which allows for compatibility with other Ethereum cryptocurrencies. It is operated by Polygon Labs.