Babylon Chain Closes $18M Funding Round

Polychain Capital and Hack VC have taken the lead in a $18 million Series A funding round for Babylon Chain. Babylon Chain is a protocol that focuses on Bitcoin staking, with the goal of bridging the decentralized finance (DeFi) ecosystem with the Bitcoin blockchain.

According to the announcement made on December 7th, the funds will be used to support the development of Babylon’s Bitcoin Staking protocol.

This protocol allows proof-of-stake (PoS) networks to stake BTC, which adds liquidity and security to emerging chains.

To better understand, a PoS chain relies on participants to validate transactions. In order to become a validator and create new blocks, a participant must stake the chain’s native coin.

The security and integrity of a PoS chain is heavily reliant on the amount of coins staked. On the other hand, Bitcoin is based on a different mechanism called proof-of-work (PoW), where miners solve complex mathematical problems to validate transactions.