A16z — a venture capital firm with both huge success and huge ambition — recently unveiled their latest endeavor: a open-source project called Magi. Magi is a rollup client for Optimism (OP), a Layer 2 blockchain that is designed to make Ethereum faster and more reliable.

A16z Chief Technology Officer Eddie Lazzarin believes heavily in the power of their open source code to bring about new investment opportunities. He posits that, if a16z can demonstrate to the crypto community that they have the technical prowess to contribute to software, these projects will be eager to work with the firm.

This has been reflected in the community's response to Magi, with feedback "blowing up" according to Lazzarin. In addition to Magi, a16z has released several other pieces of software in the past, all focused on improving security in Ethereum, functionality in auctions, and other integral aspects of the crypto community.

Magi stands as proof of a16z's commitment to the crypto sector, in both financial investments and the software initiatives that the firm has produced. Rivals VCs such as Paradigm and Jump have also generated numerous software contributions in an effort that they describe as a “public good”. Magi is set to be utilized by many of the firm's existing portfolio companies, with Coinbase also set to make use of the software for their layer-two network.

This recent transition from purely a financial investment focus to one that combines hardware and software initiatives is an efficient way for a16z to innovate and push the space forward. With a highly talented team of engineers and further software initiatives on the horizon, a16z looks set to play a major role in propelling the development of cryptocurrency.



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