Polychain Capital and Hack VC Lead $18 Million Funding Round for Babylon Chain
Polychain Capital and Hack VC have spearheaded a Series A funding round that raised $18 million for Babylon Chain. Babylon Chain is a protocol focused on Bitcoin (BTC) staking, aiming to bridge the gap between the decentralized finance (DeFi) ecosystem and the Bitcoin blockchain.
Supporting Bitcoin Staking Protocol Development
The funds acquired from this funding round will be utilized to support the development of Babylon Chain’s Bitcoin Staking protocol. This protocol enables proof-of-stake (PoS) networks to stake BTC, thereby enhancing liquidity and security for emerging chains.
Merging Proof-of-Stake and Proof-of-Work Mechanisms
Traditionally, PoS chains rely on participants to validate transactions by staking the chain’s native coin. In contrast, Bitcoin uses a proof-of-work (PoW) mechanism where miners solve complex mathematical problems. Babylon Chain aims to combine these two mechanisms into one by allowing PoS chains to attract capital through staking BTC while reinforcing the security of emerging chains.
Addressing Challenges with Bitcoin Staking
Babylon Chain’s biggest challenge is remotely addressing safety violations without requiring a smart contract on the Bitcoin chain. To overcome this hurdle, the protocol utilizes accountable assertions, finality gadgets, Bitcoin emulation, and timestamps. It emphasizes that its construction is modular and compatible with all PoS consensus protocols, eliminating the need for any soft or hard forks of Bitcoin.
Unlocking Potential for Developers and Enhancing Security
By introducing staking on the Bitcoin network, Babylon Chain opens doors for developers to build solutions on top of the original blockchain. This move addresses one of the challenges faced by Bitcoin, which has a market capitalization of $847.8 billion. Additionally, it allows for Bitcoin-backed security services to be extended to the broader blockchain ecosystem.
Investors and Future Prospects
Aside from Polychain Capital and Hack VC, other investors in the funding round include Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital, Symbolic Capital, and IOSG Ventures.
Hot Take: Babylon Chain Receives $18 Million Funding for Bitcoin Staking Protocol Development
Babylon Chain has secured an $18 million investment in a Series A funding round led by Polychain Capital and Hack VC. The funds will be used to support the development of Babylon’s Bitcoin Staking protocol, which aims to merge PoS networks with the Bitcoin blockchain. This integration will enhance liquidity and security for emerging chains while allowing developers to build solutions on the Bitcoin network. Babylon Chain’s modular construction enables compatibility with all PoS consensus protocols without requiring any forks of Bitcoin. With the backing of prominent investors and its innovative approach, Babylon Chain is well-positioned to drive advancements in the crypto industry.
By
By
By
By
By