In an official communication, the prominent Bitcoin-oriented marketplace Babylon generated $18 million in a Series A funding round. The successful fundraising was led by the leading investment company in San Francisco, Polychain Capital, in collaboration with Hack VC. Other participants included in the completed funding round were Framework Ventures, Castle Island Ventures, Polygon Ventures, Breyer Capital, Finality Capital, and IOSG Ventures.
Polychain Capital leads Babylon in Series A Funding Round
The December 7 report demonstrated that Babylon offers an exclusive marketplace for staking assets like Bitcoin. Beyond this, Babylon supports the proof-of-stake chains to acquire funding from available Bitcoin investments.
As part of Babylon’s strategic plans, the company was pleased to state that the multimillion-dollar investment will be redirected towards upgrading its Staking protocol. The Babylon team plans to enhance its staking protocol capabilities to convert 21 million Bitcoin (BTC) into decentralized staking assets easily.
This development will support the development of Babylon’s proof-of-stake (PoS) ecosystem. The Bitcoin-focused initaitive ranks among the first marketplaces centred on the PoS chain offering Bitcoin and other digital assets. However the desire to sustain its competitive edge forced the Babylon team to invest in further development to enable the PoS chains to offer Bitcoin as a staking asset.
Babylon Seeks to Upgrade PoS Protocol
Most importantly, the Babylon team aimed to support the PoS chain to secure adequate staking capital from the world’s most significant crypto assets in daily trading volume. A PoS refers to the unique approach embraced by most blockchain networks to select suitable validators of transactions.
The selection criteria depend on the available stake in the blockchain network.Initially, the PoS chains were tied to their respective native tokens for security purposes.
However, this development has emerged as a disadvantage to the newly launched PoS with inadequate staked assets. To ensure that the PoS chain has adequate staked assets, the crypto firms have embraced a high inflation approach to attract more staking by rewarding the high stakes.
Advantages of Bitcoin Staking
The introduction of inflation approach on PoS created fierce competition in the market as every network sought to obtain a limited pool of staked capital. Unlike PoS chains tied to native tokens alone, the Babylon Bitcoin-backed staking capitals offer the company security and maintain a healthy economy.
In an earlier publication, the Babylon team shared the idea behind the Bitcoin Staking process. The report underscored the benefits of Bitcoin staking compared to the PoS staking tied to native tokens. The tech company explained that Bitcoin staking allows customers to earn measurable returns from their BTC.
The Bitcoin staking concept mirrors Nakamoto’s innovation that does not require the installation of soft forks on Bitcoin chains, bridges or third-party custody.