Babel, A Start encryption The company, co-founded by Stanford University engineering professor David Tse, received $70 million in its latest funding round, according to a Bloomberg report. The company reportedly aims to bridge the gap between Bitcoin (BTC) and Ethereum (ETH), the two leading digital currencies.
Bitcoin as a staking asset
for every a reportThe funding round was led by cryptocurrency venture capital firm Paradigm, with participation from Polychain and Bullish Capital. The funds will be used to expand the Babylon team, support R&D efforts, and advance their mission of enabling BTC as a “staking asset” to secure other blockchains.
Babylon's latest funding round highlights a shift in venture capital interest toward Bitcoin-focused projects. Traditionally, Ethereum and other blockchains have been favored due to the ease of running decentralized finance applications.
However, the success of non-fungible tokens (NFTs) on the Bitcoin blockchain, coupled with the approval and launch of Bitcoin Exchange-traded funds (ETFs) in the US, have reignited enthusiasm for building within the Bitcoin ecosystem.
Professor David Tse explains that BTC is experiencing a “renaissance,” with a new wave of projects emerging on the network. Although Bitcoin was the first blockchain, the interest of the developer community gradually shifted to it Latest series Over the years.
However, recent developments and several factors have led to a renewed focus on Bitcoin. The approval of Bitcoin ETFs and the Bitcoin “halving” event in April, which reduced mining rewards, contributed to the change in sentiment.
Unleash the return potential of BTC
Babylon's primary goal is to allow Bitcoin holders to participate in validating transactions Proof of stake (PoS), earning returns on their idle Bitcoin assets.
Stake, a mechanism used in Ethereum and other proof-of-stake blockchains, involves locking cryptocurrency deposits to validate transactions and secure the network.
By enabling Bitcoin as a storage asset, Babel aims to provide a similar opportunity to Bitcoin holders, who have reportedly long wanted to generate Bitcoin. fruit Of their property.
Babylon's approach aligns with the importance of security in the Web3 ecosystem. By leveraging BTC's market cap, the startup believes it can ensure the security layer of the entire Web3 ecosystem.
It is worth noting that staking has emerged as a lucrative sector in the digital asset industry, with projects like Lido Finance (LDO) and EigenLayer (EIGEN) attracting billions of dollars in cryptocurrency deposits to generate returns.
Ultimately, Babylon seeks to contribute to the growth of staking and enhance the decentralized world being built within the cryptocurrency space.
At the time of writing, BTC is currently trading at $68,550, up 2% over the past 24 hours, as it continues to consolidate in an attempt to break the key $70,000 level.
Featured image from Shutterstock, chart from TradingView.com