Babylon Chain Secures $18 Million in Series A Funding for Innovative Bitcoin Staking Protocol

A groundbreaking protocol called Babylon Chain has successfully received $18 million in a Series A fundraising round headed by Polychain Capital and Hack VC, which is a big achievement for the decentralized finance (DeFi) field. The development of Babylon’s innovative Bitcoin Staking protocol, which aims to smoothly incorporate Bitcoin’s staking capabilities with the developing DeFi ecosystem, is expected to be accelerated by this capital infusion.

Empowering PoS Networks with Bitcoin Staking

The main goal of Babylon’s Bitcoin Staking protocol is to enable staking of Bitcoin (BTC) and strengthen proof-of-stake (PoS) networks. This is a calculated step that strengthens the security posture of nascent chains while simultaneously adding liquidity. In contrast to Bitcoin’s traditional proof-of-work (PoW) process, proof-of-stake (PoS) chains depend on users, or validators, to certify transactions by staking the native coin.

Babylon aims to close the distance between these two different realities. The business addressed the inflationary challenges PoS chains faced by introducing its Bitcoin staking minimum viable product in October. Babylon seeks to strengthen the security of developing networks by enabling these chains to draw in money through Bitcoin staking.

Babylon’s lightweight paper highlights that a significant obstacle is the remote ability to “slash all safety violations without having a smart contract on the Bitcoin chain.” The protocol says it uses timestamps, finality devices, Bitcoin emulation, and accountable claims to address this issue. Crucially, Babylon highlights how modular its design is, claiming to be compatible with all PoS consensus techniques without requiring any Bitcoin hard or soft forks.

Staking’s integration might bring in a new age for the Bitcoin network by resolving an issue that the original blockchain was facing for a long time. With a market valuation of $847.8 billion, Bitcoin is the most well-known and pioneering cryptocurrency. A Glassnode research states that 66% of its circulating supply has been inactive for at least a year.

Alex Pack, managing partner at HackVC, highlights the broader implications of Babylon’s innovation, stating, “Babylon not only unlocks the largest blockchain asset but can also make Bitcoin-backed security services possible for the broader blockchain ecosystem.”

Notable investors in the Series A fundraising round included Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital, Symbolic Capital, and IOSG Ventures, in addition to Polychain Capital and Hack VC. This broad and powerful support demonstrates how the industry understands Babylon Chain’s ability to completely change the way decentralized finance and blockchain operate.

Babylon Chain is at the forefront of the rapidly developing field of blockchain technology, opening up new avenues for security and interoperability with its ground-breaking Bitcoin Staking protocol.