Polychain Capital and Hack VC led the Series A funding round for Babylon Chain, a Bitcoin staking protocol for proof-of-stake networks.
Polychain Capital and Hack VC led the $18 million Series A funding round for Babylon Chain, a Bitcoin (BTC) staking protocol, connecting the decentralized finance (DeFi) ecosystem to the Bitcoin blockchain.
According to the December 7 announcement, the funds will be used to support the development of Babylon’s Bitcoin Stake protocol, which allows 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, the participant must stake the network’s native token. The security and integrity of a PoS chain depends on the number of tokens staked. Bitcoin, however, uses a different mechanism known as proof of work (PoW), where miners solve complex mathematical problems to validate transactions.