Bitcoin-focused project Babylon raised $18 million in an investment round led by Polychain Capital and Hack VC.
Babylon is a platform that lets proof-of-stake chains get funding from the massive amounts of capital held in the biggest cryptocurrency by providing bitcoin (BTC) as a staking asset. Babylon recently shared an email statement stating that the funds will be used to advance the development of the staking protocol.
According to Babylon, the project’s goal is “to build a Bitcoin-secured decentralised world” by turning each of the final 21 million Bitcoin into a decentralised staking asset. There are currently 19.6 million bitcoins in use.
Blockchains use a mechanism called proof-of-stake, in which transaction validators are selected according to the amount of “stake” they have in the network. Staking is the process of locking up assets in exchange for yield in order to take part in managing a blockchain network and preserving its security.
Participating in the fundraise were Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital, and Symbolic Capital.
Blockchains utilise a mechanism called proof-of-stake, in which transaction validators are selected according to the amount of “stake” they have in the network. A blockchain network’s security is upheld by locking up assets in exchange for profit, a process known as staking.