In a significant move for the cryptocurrency sector, Babylon Chain has successfully raised $18 million in a Series A funding round. The investment will be used to further develop the company’s innovative bitcoin staking protocol. This protocol is designed to integrate bitcoin‘s proof-of-work system with proof-of-stake networks without requiring any changes to the bitcoin network itself.
The funding round, which closed today, was led by Polychain Capital and Hack VC. Hack VC’s Alex Pack expressed his confidence in the project’s potential to revolutionize Bitcoin staking. The funding will help Babylon Chain develop a decentralized network that facilitates trustless conversions for the proof-of-stake economy.
This development follows the release of Babylon’s Minimum Viable Product (MVP) in October, which demonstrated the initial capabilities of their system. The MVP aims to bridge the gap between different blockchain technologies and leverage underutilized bitcoin resources. Glassnode reports have previously highlighted this dormant bitcoin supply as a huge untapped asset within the blockchain sector.
The recent influx of capital is backed by a consortium of investors with a keen interest in blockchain innovation. Framework Ventures, Polygon Ventures, Castle Island Ventures, Finality Capital and Symbolic Capital are among the contributors who see potential in Babylon’s approach to fostering new services such as data availability services for the blockchain.
Babylon’s initiative is designed to unlock new functionality within the blockchain ecosystem by enabling existing bitcoin supplies to more actively participate in a variety of blockchain-based applications and services. This funding marks a significant endorsement of Babylon Chain’s vision and technology approach in an increasingly diverse and evolving cryptocurrency landscape.
