BabylonChain

BabylonChain is a blockchain protocol that enables Bitcoin holders to stake their BTC to enhance the security of Proof-of-Stake (PoS) chains and other decentralized systems. The company was founded in 2022 by Stanford Professor David Tse and Dr. Fisher Yu with the mission to expand the utility of Bitcoin beyond its traditional role as a store of value. Tse, a member of the U.S. National Academy of Engineering and recipient of the IEEE Claude E. Shannon Award, brings deep academic expertise in wireless communications and blockchain technology from his work at Stanford. Yu contributes extensive industry experience as a former research engineer at Dolby Laboratories, where he co-authored over 15 patents.

The firm operates a two-sided security marketplace where Bitcoin holders can provide security to PoS systems in exchange for rewards. This is achieved through a trustless and self-custodial staking model, meaning users retain full control of their Bitcoin on the Bitcoin blockchain without relying on risky cross-chain bridges or third-party custodians. The protocol uses cryptographic techniques and Bitcoin's native scripting capabilities, like time-locking, to allow users to lock their BTC for a specified period to validate PoS chains. This process makes the staked BTC "slashable," creating a strong economic incentive for honest behavior. The core clients are PoS chains, Layer-2 solutions, Data Availability (DA) layers, and oracles that can benefit from the economic security of the vast, idle Bitcoin ecosystem, which is valued at over $1 trillion. By using Bitcoin as a staking asset, these emerging chains can bolster their own security and reduce the inflation pressure on their native tokens.

BabylonChain has achieved significant milestones, including raising a total of $96 million in funding over four rounds. This includes a seed round in March 2023, an $18 million Series A in December 2023 led by Polychain Capital and Hack VC, an investment from Binance Labs in February 2024, and a substantial $70 million funding round led by Paradigm in May 2024. The company launched its first trustless Bitcoin staking testnet in February 2024, attracting over 100,000 stakers within 48 hours, demonstrating strong market interest. The project is rolling out in phases, with plans to launch its own PoS chain (the Babylon Chain) and eventually extend its security services to a wide range of chains in ecosystems like Cosmos.

Keywords: Bitcoin staking, Proof-of-Stake security, shared security, trustless staking, self-custodial, David Tse, Fisher Yu, blockchain protocol, Cosmos SDK, PoS chains, Layer-2 security, data availability, decentralized finance, crypto-economic security, Bitcoin yield, liquid staking, restaking, slashing, Paradigm, Polychain Capital, Binance Labs