Polychain Capital and Hack VC led the Series A funding round of Babylon Chain, a protocol working on Bitcoin staking for proof-of-stake networks.
Polychain Capital and Hack VC led the $18 million Series A funding round of Babylon Chain, a protocol working on Bitcoin (BTC) staking, bridging the decentralized finance (DeFi) ecosystem with the Bitcoin blockchain.
According to the Dec. 7 announcement, the funds will be used to support the development of Babylon’s Bitcoin Staking protocol, which enables proof-of-stake (PoS) networks to stake BTC, adding liquidity and security to emerging chains.
For context, a PoS chain is a type of blockchain that relies on participants to validate transactions. To be a validator and create new blocks, a participant must stake the chain’s native token. The security and integrity of a PoS chain depend on the amount of tokens staked. Bitcoin, however, uses a different mechanism, known as proof-of-work (PoW), where miners solve complex mathematical problems to validate transactions.