Bitcoin-focused initiative Babylon raised $18 million in a funding round led by Polychain Capital and Hack VC. Babylon operates as a marketplace, enabling bitcoin (BTC) as a staking asset for proof-of-stake chains to attract funding from the vast capital within the leading cryptocurrency. The secured funds will propel the advancement of Babylon’s staking protocol, as detailed in a statement shared with CoinDesk. Babylon’s mission is to establish a decentralized world secured by Bitcoin, aiming to convert the entire 21 million BTC into a decentralized staking asset. Currently, nearly 19.6 million bitcoins are in circulation. The project utilizes proof-of-stake, a mechanism selecting transaction validators based on their stake in the network, with staking involving locking up assets to contribute to running and securing a blockchain network in exchange for yield. Other contributors to the funding round include Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital, and Symbolic Capital.
Proof-of-stake functions as a mechanism in blockchains where transaction validators are selected proportionally to the amount of their “stake” in the network. Staking involves locking up assets to actively contribute to the operation of a blockchain network and ensuring its security, with participants receiving yield in return.
