360 Blockchain Inc (CNSX:CODE) has talked up the potential of the Arcology platform, in which it recently announced it was investing up to $2mln.
Earlier this month, blockchain-focused 360 said initially, there would be an $1mln equity injection, which will entitle 360 to 30% of the shares..
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Subject to terms, Arcology will then be funded up to $2mln by 360, entitling it to 51%.
The new platform, invented by visionary Laurent Zhang, uses machine-learning and pattern- recognition technology.
Contemporary blockchain networks are flat and two-dimensional, 360 said today, adding that Zhang's platform was "a radically new way of looking at blockchain".
"Leveraging his experience with machine learning, artificial intelligence and big data algorithmic analysis, he is creating a hierarchical structure that is self-organizing and self-repairing," said the company.
"If we imagine a contemporary blockchain as a flat disc, Zhang's is a layer cake that is constantly improving itself. Arcology behaves more like a living community than a network of computers, said Jeff Koyen, strategic advisor and 360 Blockchain USA's president and chief executive.
Ethereum, with a $67bn market cap, is the current leader in this space, and can be viewed as Bitcoin plus an operating system.
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"But Ethereum is suffering from its success," added Koyen.
"Transaction speeds have slowed; there are questions about scalability; and fees are becoming prohibitive. Zhang and his team are learning from Ethereum's mistakes."
"For all the hype surrounding Bitcoin and other highly speculative cryptocurrencies, it's the underlying technology - blockchain - that has the greatest future," said George Tsafalas, 360 Blockchain Inc's president and chief executive.
"At 360 Blockchain, we're committed to building this future, and our investment in Arcology is a significant leap in that direction."
360 Blockchain shares are up 8.93% at the time of writing, at C$0.305 each.