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Why We Started PureStake

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Many of us at PureStake were just starting our careers in the mid-to-late 90s, during the first internet wave. Since then, we have spent the last 20-plus years building infrastructure, software, and cloud companies based on the possibilities opened up by the internet. I recall the atmosphere and feeling of those early internet days and, in the intervening years, I hadn’t experienced that feeling since until I started getting involved with crypto.

The crypto genie is out of the bottle, and it has unleashed forces which cannot be stopped or contained. We believe that using blockchains to move value in an open, low friction, low-cost way will have as large an impact on all of us as the internet has had in moving information in an open, low friction, low-cost way. We are only at the beginning of a historical shift where crypto networks and applications will disintermediate many existing companies, structures, and practices, replacing them with code.

While the strategic direction of this shift is clear, the particulars of how this shift will play out are harder to call. That said, we have several beliefs that we stand behind:

  1. The future will be a multi-chain future vs one-chain-to-rule-them-all. In this future, bitcoin will continue to have a foundational place in the ecosystem, but there will also be many other blockchains, each of them good at different things.
  2. Public and permissionless blockchains will lead the way in terms of innovation and interesting applications vs private and permissioned ones.
  3. Proof of Stake consensus protocols are a more scalable, more efficient, and ultimately more secure consensus mechanism versus more traditional Proof of Work consensus protocols. As decentralized currencies, networks, and applications continue to mature and get traction, we believe there is a large opportunity to provide infrastructure as a service to support participation in and development on these decentralized networks.

We are taking all of our experience building and running cloud services and applying it to crypto infrastructure. Given that this infrastructure will be directly handling value, the security and reliability of our services must come first (and features will sometimes have to come second).

We use a software-first approach to solving problems. Treating our infrastructure as code and using software engineering best practices to deliver change to our infrastructure is one example of this. We aim to hide infrastructural complexity from our users and customers. We want to provide them with services that are simple to consume, freeing them to focus on the reasons they want to interact with the blockchain vs the details and mechanics of how to interact with the blockchain.

We will engage closely with a select number of networks that we believe in. We want to focus our energy on fewer vs more networks to be able to go deep on them to understand how they work, their nuances, their APIs, and their infrastructure needs. As we build expertise on specific networks we will be giving back to those networks in the form of services, tools, and information that help the community. Our goal is to provide secure and reliable blockchain infrastructure that participants can depend on and that developers can build upon.

The first network we are focused on is Algorand. Algorand is currently in TestNet and will be launching their MainNet soon.

Why Algorand? We personally know many of the people on the Algorand team. They have an extremely talented engineering, research, and business operational team. We believe in Silvio Micali, Steve Kokinos, and the team they have assembled. We think they can execute on a complicated and difficult roadmap in a way that other projects have historically been challenged with.

Our experience with the Algorand software and network has been similarly very positive. The quality of the code, the security, and design innovations, and the rich set of financial primitives have all made a big impression. The performance of the network we have seen on the TestNet without significant sacrifices to security or decentralization we believe will move the needle among public blockchains and blockchain design in general.

We are excited to be one of the companies helping to support the upcoming Algorand MainNet network launch and look forward to engaging with participants and developers in the Algorand community.

Stay tuned for updates on our journey by signing up for our newsletter, or feel free to contact us if you are developing an Algorand application or need help with blockchain infrastructure.

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