Meet Jim Kim, Founder and General Partner at Builders VC

He also formerly served as a General Partner at Khosla Ventures and a Senior Partner at CMEA Capital. Jim began his career by founding GE’s …

Kim founded Formation 8 and was previously a General Partner at Khosla Ventures

Venture capital used to be a cottage industry, with very few investing in tomorrow’s products and services. Oh, how times have changed!

While there are more startups than ever, there’s also more money chasing them. In this series, we look at the new (or relatively new) VCs in the early stages: seed and Series A.

But just who are these funds and venture capitalists that run them? What kinds of investments do they like making, and how do they see themselves in the VC landscape?

We’re highlighting key members of the community to find out.

Jim Kim is Founder and General Partner at Builders VC

Prior to Builders, Kim founded Formation 8 and served as its Managing Partner. He currently serves on the boards of Bowers & Wilkins (EVA Automation), Bolt Threads, Fieldwire, Bowery Valuation, and Notable Labs.

He also formerly served as a General Partner at Khosla Ventures and a Senior Partner at CMEA Capital. Jim began his career by founding GE’s Venture Capital effort and leading investments in China High Speed Transmission, and ComScore.

Kim received undergraduate degrees in Computer Science & Electrical Engineering and Political Science from MIT, where he also founded a venture-backed Internet infrastructure start-up with fellow Course 6 students. He also holds a Masters Degree in Quantitative Data Analysis from Columbia University and an MBA from Columbia Business School.

VatorNews: What is your investment philosophy or methodology?

Jim Kim: The whole thesis behind Builders is to go after antiquated, unsexy industries. I’ve never, in my career, been a great consumer investor or picker of trends; I don’t even know what problem Snapchat solves, and there are plenty of investors who are great at that. My career, my background, has always been going after unsexy spaces, looking at real, meaningful problems in these spaces, and identifying the entrepreneurs and technology companies who go after these spaces with really just good tech. You don’t need stuff to shoot rockets to the moon, but when you’re solving an industry like agriculture or oil field services or animal health, these are industries where pen and paper is largely the methodology for running the business, and we think that technology companies can come in, solve meaningful problems, make these industries more efficient, provide visibility into operations and then recommendations in how to run these businesses more efficiently. We think that’s the biggest opportunity in tech. We’re Series A focused in companies that are impacting these antiquated industries.

VN: What are your categories of interest?

JK: We’re really focused on four verticals, but let me talk about we how got to those four verticals, because that’s part of the story as well.

We looked at all these different industry verticals and we said, “Where’s the low hanging fruit tech opportunity?” For the most part, there have been some really great enterprise and SaaS companies, horizontal plays that have been built, and the market’s pretty crowded there with some great venture firms that are playing in that space. We said, “Let’s look at these vertical industries where IT, as a percentage of revenue, is de minimis.” Take an area like fintech; over 6 percent of revenue is spent on IT, and this is why places like Goldman, Bank of America, etc have billion dollar IT budgets. The flipside of the equation is an industry like agriculture, where less than one tenth of one percent of revenue is spent on IT. It’s kind of shocking that that’s the case given it’s a trillion dollar global industry, but, for the most part, there has not been technology adoption. We were some of the first ones to actually play in that space and have some good results, and it’s really what we view as a greenfield opportunity.

Now, the key to going into these industries is have to know the industry; you can’t take a kid out of Stanford who’s never done anything and say, “Alright, go solve oil field services. Go solve real estate.” So, we try to find entrepreneurs who are technology savvy but they also have to have industry expertise. Whether that comes through partnering with somebody who comes from the space and knows the industry and pain points, or they have it themselves through a family business that they grew up in, that’s what we tend to look for.

The four verticals where we’re active are agriculture, industrial technology, health IT and real estate.

VN: What’s the big macro trend you’re betting on?

JK: Themacro trend varies somewhat industry to industry, but part of it is driven by the fact that decision making is largely based on pen and paper. The need for efficiency is driving technology to be adopted by people who, frankly, did not have interest in adopting technology before. As an example, your average farm owner is 57 years old, so you go to 57 year old farmer who has literally no background in technology, and you say to them, “Hey, I have this wonderful, awesome technology that you can apply.” If they aren’t aware of the benefits, if they aren’t very clearly attuned to the problem that you are solving for them, there’s zero receptivity to that.

In some sense, we’re lucky that there’s a demographic trend, because many of these old world industries are now transitioning to a younger generation who demand real time insights. We live in a world where enough data is collected, though most of it’s complete bullshit, but enough data is collected that you can gleam some interesting insights. I would argue that it’s the generational push, the need for efficiency, the enabling of technologies becoming cheaper and easier to use, and the real pain points being identified. That’s why we think these industries are ready to adopt this stuff.

VN: How do you prove that value to people who haven’t used technology before?

JK: I’ll give you an example. We have a company in our portfolio called Performance Livestock Analytics, and this is a company going after the cattle ranching space. So, on one side people are looking at protein, and there’s no doubt that we need more protein. One approach has been the Silicon Valley darling right now, which is, “Let’s go invest in plant-based hamburger, ground beef, and we’ll make it taste really good.” Certainly there’s a push towards that, it’s interesting, and there’s certainly receptivity towards it. However, the cattle industry is the largest industry vertical in eight U.S. states, so it ain’t going anywhere. The problem this industry has faced, historically, has been the mom and pop players are going out of business, and that’s because they don’t have the scale of the large organizations, they don’t know cattle to cattle, cow to cow, whether they’re making any money, because they’re making buying decisions based on gut feel and what’s been done for the past 30 years, what they’ve been taught. What Performance Livestock does is they actually provide visibility into the operations of a cattle ranch, so from the purchasing of grain to the feeding of the grain to the cow to the daily process of feeding- how many times do you feed? What are the daily results in real time? All the way to the point where you sell that cow off, they are collecting that information and making that visible to the cattle rancher.

We’ve seen some crazy behavior from cattle ranchers; some cattle ranchers, just based on gut feel, say, “You know what? I’m going to feed my cows three times a day.” You don’t need to do that, that’s actually a hindrance to the cow, but, “That’s how grandpa did it and that’s how I’m going to do it,” no matter the fact that they will probably lose $500 per cow doing that. They’ve never had that visibility before. That’s what this company is doing, providing that visibility, and once you have that you can make better decisions about feeding, about the mixture of hay versus corn feed, about feed additives. You can track that cow, you can start making optimization a part of your routine because now you have insights you’ve never had before. Customers are using this software five to six hours a day, seven days a week, when they were using pen and paper before.

VN: What is the size of your current fund and how many investments do you typically make in a year? What stage/series do you invest in and how much is that in dollar amount for you?

JK: It’s a $175 million fund, mainly focused on Series A opportunities where our average check size $3 to $10 million; our largest one to date has been $9 million in a real estate company in New York.

The number of investments per year, I don’t think we see a rush in putting money to work, which is a macro trend for VC right now; in fact, everybody’s sitting on more capital than they’ve ever sat on, which basically leads to a pretty tough environment for firms that actually have a philosophy around valuation. We hope to make six to eight new investments per year, so not a “shovel money out the door” pace, but rather really understand these industries we’re operating in, get to know the companies and then really bring quite a few of the resources that we have to bear to help them win. The downside of not being in Silicon Valley is sometimes there’s more of an education process on raising money, on metrics to run your business by, for these entrepreneurs. So, there’s a little bit more hand holding that we sometimes find.

VN: What kind of traction does a startup need for you to invest? Do you have any specific numbers?

JK: I don’t think we have a set and fast rule. It is fascinating, I was at the Bloomberg Venture Forward conference last week and they were talking about there’s seed, post-seed, pre-A, seed-extension. It’s literally focused on every subset, it’s kind of nuts. I’m old school, I learned this business from Pierre Lamond from Sequoia and Vinod Khosla from Kleiner and Khosla Ventures. We do Series A where you get really involved in the company, take enough ownership that, from an economic perspective, it actually makes sense for your fund, and really make sure you’re helping the company.

If you’re going to adopt that philosophy, where you’re writing checks in that $3 to $10 million range, you want to see the company have, first off, a phenomenal technical team, because that’s what mitigates burn and gets you to market faster. It’s a team that can adjust on the fly because you’re constantly making tweaks to the product and running experiments, so kick ass technical team is first. Secondly, you want to see that the company has identified the pain point and that you, as an investor, can validate that those pain points really exist. There are various different metrics you can use to validate that point; one could be revenue, another one could be contracts that are, in essence, lock-in use of the product, and another could be letters of intent, all the way down to, “I’m just interested as a customer.” We want to be on the far edge of that spectrum, closer to the revenue side; it doesn’t necessarily have to have revenue, but we want to see customers using the product, engaged in it, and that allows us to diligence whether or not this is really addressing a pain point and, specifically, if it’s a vitamin or an antibiotic.

VN: What do you think about valuations these days? What’s a typical Seed pre-money valuation and Series A?

JK: Last year seed investing was down relative to years before, in a pretty significant way. So, there were a bunch of seed funded companies that were having difficulty working their way through the normal pathway and what ended up happening there is that a lot of them ended up getting seed extensions. So, some of those are popping up now, and, in many cases, they’ve raised enough money that would qualify for a traditional Series A. They’re one round behind their skis. That’s at seed side. A little less activity than years past, certainly still plenty of capital floating out there because everybody and their mother seems to have a seed fund.

I don’t think it’s ever been easier to start a company, but I do think that at the A round it’s hard. That’s a function of funds getting larger, so it doesn’t make sense for a $1 billion venture fund to write a $6 million traditional Series A check, because it just doesn’t move the needle. So, with all of our peers just getting larger, they’ve gone a bit up market, so where you’re seeing valuations be below crazy nuts, but certainly aggressive, is Series B to Series C. That’s where people are raising pretty large rounds; it used to be you’d raise $15 to $20 million in a Series B, now the number seems to be $40 to $50 million. That’s where valuations have gone really high, and if you look at multiples of ARR for SaaS businesses, they’ve scaled up to the upper teens and twenties when you’re approaching that Series B and certainly C. There’s plenty of money competing over that because at that point your business is largely baked and it’s an execution play, so what is your value add really going to be a venture investor? I can pull the lever on, “I can give you a lot of money at a very high price” or some firms are really great at fostering M&A, but those are really the two major differentiation points when it comes to that later stage capital, so valuations there have been aggressive.

VN: There are many venture funds out there today, how do you differentiate yourself to limited partners? How do you differentiate your fund to entrepreneurs?

JK: From the LP side, I’ve been in this business for 12 years; damn I feel kind of old! I’ve been through multiple up and down cycles. I do think that venture has a very large apprenticeship component to it, and to that end I’m extraordinarily grateful for the experience of having learned from two of Silicon Valley’s giants, and, to me, that was just a tremendous experience. History tends to play itself over again, or some flavor of it over again, so learning from that experience has been phenomenal. So, it’s not like we’re newbies at this game, this is a group of folks that has done this for quite some time and has a lot of experience.

The second element is we do half of our investments outside of Silicon Valley; that means we live on airplanes. We’re not just of the mindset that the world ends at the Bay Bridge and San Jose, we believe that there’s opportunity everywhere to find great companies, whether it’s Ames, Iowa or Houston; we have an office in Calgary, Canada because we think there’s opportunity up there. We’re willing to look everywhere, and, in fact, that’s how you find the centers of excellence for the industries that we’re involved in.

The third element is that entrepreneurs and LPs both will ask, “Why would I work with you guys at a discount when I could choose other capital?” There are plenty of options for capital out there: family offices, venture funds, strategicsl like one out of five investments now has a strategic investor. In that environment, what are you doing that’s different? Largely in this world everybody’s one or two contacts points away from someone who you need an introduction from, so we do that, but I think everybody plays that game. The thing is we have deep sector knowledge in the industries where we’re active, so in every industry not only do we have an industry expert who provides us with color; for example, a guy like Jim Blome who used to run Bayer Crop Sciences, he bought Monsanto and he’s one of the most powerful in agriculture, he’s part of our team and he helps us evaluate agtech investments. You couldn’t ask for anybody better than that. On top of that, the deep sector expertise includes strategic LPs; one of our LPs is the Wilbur-Ellis corporation, which is the largest distributor of agricultural products on the west coast. Phenomenal group, great group of people, they own the grower, they have the customer relationships; not only are they potentially providers of channel to our portfolio companies but they give us phenomenal industry insight. So, we don’t go into these sectors blind, we really try to bring sector knowledge to bear that is deeper than other funds that we end up running into.

Then the last bit would be something that we’ve coined “B2” which is a group of operating partners, most of whom we’ve known since our days at Khosla and who came with us through Formation 8 and the whole nine yards. These folks really have phenomenal chops when it comes to addressing the pain point of the entrepreneur, which is how do I build my company? How do I accelerate the growth of my company on the capital that I have? It can be user acquisition and spending capital efficiently there, determining what experiments to run and how to not light money on fire getting customers. We even have a shrink on staff; if you’re familiar with the show Billions and Wendy Rhoades, we have one of them on staff because entrepreneurs have a hard job and we want them to channel their energy toward building a great culture. So, those types of things we do to help entrepreneurs because we’ve been them and we know how hard the job is.

VN: What are some lessons you learned?

JK: It’s a hard question because there’s so much, and I’ve been through some absolutely crazy things.

I think founders have to have a bit of a reality distortion field, because, in some sense, they’re trying to change something that hasn’t been tackled, or has only been tackled poorly, before. So, you have to be a little bit nuts to want to change something and you have to be willing to bash your head against the wall repeatedly when everybody’s telling you you’re nuts. But you also have to balance that with reality and you have to balance that with transparency to your investors because, ideally, your investors are going to help. So, there’s a balance between that aggressiveness and self awareness to understand when something’s not working. I think that’s really hard and, ideally, it’s something that we help with, and we encourage our entrepreneurs to give us homework as they go through this journey of trying to figure out whether something is working or not. Whether it’s introductions or customers or giving them process to identify when something’s working, or if an experiment is taking off or failing, that’s something that I think you have to have been in this business a little while to have seen many cases of it succeeding or failing. We’re still learning, but that’s certainly one of the arts of being a good venture capitalist is identifying the entrepreneur who has that combination self awareness and drive.

VN: What excites you the most about your position as VC?

JK: For me, I guess was the rare person out of college who knew 100 percent what I wanted to do with my career, and I think part of it was starting a company in college pitching to VCs and then realizing that people on the other side of the table were having a lot of fun. So I said, “I want that job.” I guess it’s a bit of ADD, but it’s also the fun, the honor, of working with people who are really, really smart, who are tackling really tough problems. I get to learn from them every day. That’s the best part of the job; whether it’s The Bowery Valuation guys, who are trying to get pen and paper out of the appraisal process in commercial real estate, or whether it’s Checkerspot, who’s developing novel materials in a way that hasn’t been done before for applications and skis and surfboards, or whether it’s the Notable Lab guys who I feel confident are going to have a major role in curing certain types of cancer. Each of these entrepreneurs is doing something amazing and I get to be part of that journey, so that’s pretty cool.

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Arrow Video FrightFest 2019: 10 hidden gems you need to see

When: 3.45pm in Cineworld Leicester Square Discovery Screen on Monday 26th August. Synopsis: Sisters Kat and Sophie, and their boyfriends Mark …

Arrow Video FrightFest is just around the corner and with so many films on offer – 78 to be exact – it can be hard to know what to see.

We already selected the 10 films you can’t afford to miss on the Main Screen and now we’re picking out 10 films that you should catch on the Discovery Screens. To be honest, it was hard to pick just 10 but we managed… just!

Take a look at our picks below…

1. The Barge People

Cast: Kate Davies-Speak, Mark McKirdy, Makenna Guyler, Natalie Martins

Director: Charlie Steeds

When: 3.45pm in Cineworld Leicester Square Discovery Screen on Monday 26th August

Synopsis: Sisters Kat and Sophie, and their boyfriends Mark and Ben, are looking forward to a relaxing weekend cruising through the glorious British countryside canals on a luxury barge. Tension arises when businessman Ben refuses to turn off his mobile and fully enter the party spirit and stress is raised further when they damage another barge and its tenants track them down to the local pub. But nothing has prepared them for the intense midnight attack on their vessel by a family of flesh-eating fish mutants who have been lurking in the dark waters, waiting for their next meal.

2. Criminal Audition

Cast: Noeleen Comiskey, Rich Keeble, Angela Peters, Rebecca Calienda, Luke Kaile

Director: Samuel Gridley

When: 3.30pm in Prince Charles Cinema Discovery One Screen on Saturday 24th August

Synopsis: A darkly funny, claustrophobic Midnight Movie to laugh, wince and gasp at. An ex-lawyer and his crack team run an underworld service; they seek the most desperate and greedy to become fake criminals to take the fall for the rich and powerful elite’s felonies. The process is known as the Criminal Audition. In an undisclosed location, over one night they will put three individuals through hell to find the perfect candidate for their latest assignment. But their world is turned upside down when they face lies, deceit, murder and a very dangerous new client auditioning for their biggest job yet.

Read our interviews with director Samuel Gridley and actor/co-writer Luke Kaile.

3. Critters Attack!

Cast: Tashiana Washington, Dee Wallace, Jaeden Noel, Jack Fulton

Director: Bobby Miller

When: 6.30pm in Prince Charles Cinema Discovery Two Screen on Saturday 24th August

Synopsis: Those small furry aliens with a carnivorous bent are back – alongside original star Dee Wallace – for their highly anticipated fifth sci-fi horror adventure. Twenty-year-old Drea reluctantly takes a job babysitting for a college professor in the hope he may look more kindly on her attendance application. Struggling to entertain the professor’s children Trissy and Jake, along with her own little brother, Philip, Drea decides to take them on an energetic hike. Unfortunately she is completely unaware that everyone’s favourite E.T. furballs with teeth have crash-landed in the same area and have started devouring every living thing they close encounter.

4. The Dark Red

Cast: April Billingsley, Kelsey Scott, Conal Byrne, Bernard Setaro Clark, Rhoda Griffis

Director: Dan Bush

When: 3.45pm in Prince Charles Cinema Discovery Two Screen on Saturday 24th August

Synopsis: Indie director favourite Dan Bush (The Signal, The Vault) returns to FrightFest with a seat-edge twisted shocker. Sybil is being held against her will in a psychiatric ward because her claims are extreme. She says her newborn baby was kidnapped by a secret society to harvest its supernatural blood. She says the ancient bloodline has great powers – it lets you hear other people’s thoughts. And she begs the doctors to let her go so she can rescue her child from the cult’s dungeons. Is she telling the truth, or is it just mere delusion? The answer will freeze your brain.

5. Death of a Vlogger

Cast: Graham Hughes, Annabel Logan, Paddy Kondracki, Joma West

Director: Graham Hughes

When: 10.30am in Prince Charles Cinema Discovery One Screen on Saturday 24th August

Synopsis: Prepare for a genre-bending horror mockumentary when a vlogger gains viral fame after one of his eerie videos contains an alleged out-of-this-world haunting. Following YouTuber Graham as he investigates the darker supernatural side of the web and dealing with the effects of being famous on the internet, this trip down a hellish rabbit hole includes interviews, cat videos, ripped YouTube content, fun nonsense, archive material, tension and unusual scares. Following in the footsteps of maverick independent filmmakers, this bold new feature is the perfect balance of horror and reality giving the found footage format a needed shot in the arm.

Read our interview with film-maker and actor Graham Hughes

6. Halloween Party

Halloween Party
Credit: Northeast Films

Cast: Amy Groening, T. Thomason, Shelley Thompson, Bradley Bailey

Director: Jay Dahl

When: 8.50pm in Cineworld Leicester Square Discovery Screen on Saturday 24th August

Synopsis: The Ring Meets Halloween in Splatter University. They were known as the ‘Halloween Party’, a group of five badly disfigured children who made a pact to take revenge on a world who couldn’t look at them. Unwittingly released from their closet grave via a Halloween-themed computer meme, they now take malevolent joy in terrorising college students with their worst fears. Can the unlikely pair of bereaved Grace and hacker nerd Spencer stop the virus spreading before its too late? Or will your worst fears – spiders, alcoholic parents, pigs, the Tall Man, exorcists – come to get you too?

Read our interview with director Jay Dahl

7. Impossible Crimes

Cast: Federico Bal, Sofia del Tuffo, Marcelo Sein, Daniel Alvaredo

Director: Hernán Findling

When: 1.15pm in Cineworld Leicester Square Discovery Screen on Friday 23rd August

Synopsis: Experienced detective Lorenzo Brandoni is devastated after two personal catastrophes: his sister dies of cancer and his wife and son are killed in a car crash he’s mainly responsible for. Throwing himself into his work to ease the pain, he starts investigating a series of impossible crimes that a young nun claims responsibility for. Is she really the devil’s emissary ordered to carry out seemingly senseless slaughter? Or does she suffer from a mystical delirium? As she leads Brandoni further into his own tortured darkness to finally face his personal demons, the incredible truth will prove a shattering revelation.

Read our interviews with director Hernán Findling and actor Federico Bal.

8. The Perished

Cast: Courtney McKeon, Fiach Kunz, Paul Fitzgerald, Noelle Clarke

Director: Paddy Murphy

When: 3.30pm in Prince Charles Cinema Discovery Two Screen on Monday 26th August

Synopsis: Dealing with a pregnancy termination in Ireland has been hard for Sarah Dekker. Shunned by her religious zealot family and after also breaking up with her unforgiving boyfriend, she travels to a sympathetic friend’s house in the country to recover. But unbeknownst to her the provincial pile sits atop a mass grave of unwanted babies and their lost, confused sprits want to be reborn. Feeding on guilt and remorse the spirits need a mother. And they just might have found one in Sarah… Mixing horror and pertinent social issues, The Perished marks the debut of a new Irish genre voice.

Read our interview with director Paddy Murphy.

9. Red Letter Day

Red Letter Day
Credit: Epic Pictures

Cast: Dawn Van de Schoot, Hailey Foss, Kaeleb Zain Gartner, Roger LeBlanc

Director: Cameron Macgowan

When: 1pm in Prince Charles Cinema Discovery Two Screen on Friday 23rd August

Synopsis: Adjusting to a new life in suburban Aspen Ridge, a recently divorced mother receives mysterious letters instructing her and her teenage children to slaughter the people pictured in their correspondence before they can kill them. Paranoia and chaos ensues as the family attempts to rationally deal with an irrational situation. Making matters worse, the local law enforcement, already ineffective and patronizing, are unresponsive to calls for police aid after they are quickly overwhelmed by the sheer number of community participants in the murderous mayhem. A dark comedy chiller asking the age-old question: Just how well do you know your neighbours?

Read our interview with director Cameron Macgowan.

10. True Fiction

Cast: Sara Garcia, John Cassini, Julian Black Antelope, Julian Richings

Director: Braden Croft

When: 1pm in Cineworld Leicester Square Discovery Screen on Saturday 24th August

Synopsis: Withdrawn Avery Malone, a wannabe writer and lonely librarian, gets her big break when she’s hand-selected to assist her hero, reclusive author, Caleb Conrad. Whisked away to Caleb’s remote country estate, Avery is given her one and only task: to participate in a controlled psychological experiment in fear that will serve as the basis for Caleb’s next thriller novel. What could possibly go wrong? Exploring personal themes of sacrifice, remorse and absolution, Braden Croft’s third independent feature after Feed the Gods and Hemorrhage, is a compelling study into consent and the abuse of power.

Read our interview with director Braden Croft.

Arrow Video FrightFest 2019 takes place from Thursday 22nd to Monday 26th August at Cineworld Leicester Square in London. For more information and tickets please visit http://www.frightfest.co.uk.

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Are we ready for the changes artificial intelligence can bring?

Many of us find the concept of artificial intelligence confusing and creepy. But what if we’re already using it in our every day lives? And what if we’re …

Many of us find the concept of artificial intelligence confusing and creepy. But what if we’re already using it in our every day lives?

And what if we’re thinking about it all wrong?

Dr Sandra Peter is a researcher and educator at the University of Sydney Business School. She is also the director of Sydney Business Insight, where she leads conversations about the future of business.

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Tron Founder Unveils SUN Network Version 1.0, DAppchain MainNet to Follow Soon!

The first is the support it offers to smart contract transactions, concentrating on enhancing its TPS on the MainNet and decreasing the transaction fees.

Tron Founder Justin Sun has yet again captured all the attention from the crypto and blockchain community. TRON has officially launched Sun Network’s code version 1.0. For all those left amused, Sun Network is a side chain solution of TRON, considered one of the biggest blockchain projects in the world. Tron Founder shared the update with the Twitter community followed by a detailed blog post on Medium on 11th August 2019.

Among #SUNNetwork, #DAppChain is a side chain scaling project designed to provide unlimited scaling capacity for the TRON MainNet, enabling #DApps to run with lower #Energy consumption, higher security and efficiency on #TRON. #TRX$TRXhttps://t.co/GjNkhywHPz

— Justin Sun (@justinsuntron) August 11, 2019

Designed to be a scaling solution, Sun Network has been developed to broaden the TRON MainNet’s capacity, including a string of scaling projects like DAppchain and cross-chain communications. Being a side chain scaling plan, DAppchain is designed for providing TRON MainNet with an unlimited scaling potential in order to support an increasing number of transactions. It is also aimed at allowing decentralized applications to run on Tron with increased efficiency and higher security at reduced energy consumption.

#DAppChain is #TRON‘s sidechain project. The goal is to help #DApps to operate on #TRON with lower energy consumption, faster speed and enhanced safety, providing unlimited capacity for TRON’s main network. #TRX$TRXpic.twitter.com/R5iZpU8UNy

— Justin Sun (@justinsuntron) August 12, 2019

What’s worth noting is that in comparison with other scaling projects, the Sun Network demonstrates two remarkable features. The first is the support it offers to smart contract transactions, concentrating on enhancing its TPS on the MainNet and decreasing the transaction fees.

The second feature is more customizable needs can be supported by the side chain such as forming transaction rates, side-chain perks, the speed of transaction confirmation, along with other parameters that cater to the individual requirements of developer groups.

Moreover, the solution will also open additional prospects for the TRON DApps as well as the whole ecosystem’s development. However, while thriving the network of TRON, the solution intends to make positive impacts on the entire blockchain space as well.

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Tron Officially Releases Its Side Scaling Solution, the Sun Network

Through its release, several scaling projects the likes of cross-chain communications, smart contract optimized application side chain and DAppChain …

In a bid to improve its platform performance while also ensuring Tron Mainnet has an unlimited scaling capacity, Tron has released V1.0 code for Sun Network. The latter is coming with several new features which will make everything easy for users and developer alike.

While V1.0 has come out now, its planned expansion started way back in late May. Tron announced its working on its second layer scalability solution expansion, and within that month Testnet for the network kicked off. The latter was followed by Sun information the Tron community of the solution first version will enable 100x scalability and also enable developers to build applications on the sidechain. With the V1.0 already out, the Tron community has more in store.

Features Brought Forth by Release of V1.0 Code

First and foremost, Sun Network is all about improving the scalability of Tron Mainnet. However, that’s not it all. Through its release, several scaling projects the likes of cross-chain communications, smart contract optimized application side chain and DAppChain will get released too. Moreover, with the release of the sidechain scaling project DAppChain, unlimited scaling capacity is enabled on Tron Mainnet. The latter ends up improving platform efficiency, increasing security measures, and lowering energy consumption for DApps.

Similarly, the side chain also comes with customizable features which enable the setting of transaction confirmation speeds, transaction rates, activation of sidechain incentives, among other parameters. The latter are all aimed at developers and their specific needs.

While expressing his view about Tron’s new milestone, Justin Sun Tron’s CEO had the following to say;

The essence of us releasing the Sun Network is to provide unlimited scalability to Tron Mainnet. Through the solution, we are giving DApp developers more features to work with; however, we are also promoting the development of the entire ecosystem at large. Besides that, the solutions primary goal is to add positive impacts to the blockchain sector as a whole while also pushing Tron network into the next era.

While it’s a standard norm for such developments to impact the price of Tron, this time around the Tron’s price didn’t get the jolt of activity as usual. Its price moved up by a mere 1%, and at the moment it’s valued at $0.020493. However, Sun’s latest development was received well by the Tron community.

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