July 21, 2024
Babylon Unveils Bitcoin Staking Protocol MVP to Tap Into Dormant BTC
Bitcoin News

Babylon Unveils Bitcoin Staking Protocol MVP to Tap Into Dormant BTC

Today at Cosmoverse in Istanbul, Turkey, the crypto security blockchain Babylon unveiled the minimum viable product (MVP) of its Bitcoin staking protocol.

Glassnode estimates that $329 billion, or over 66% of the total circulating amount of Bitcoin, is lying dormant. Babylon wants to exploit the idle Bitcoin to provide economic security for chains via proof-of-stake.

The Babylon team published a Bitcoin timestamping protocol earlier this year, which proof-of-stake (PoS) networks may utilize to improve long-range security. Later, a Bitcoin staking lite paper was made public. Its goal was to exploit Bitcoin that was lying idle in wallets to help protect PoS networks.

Native assets are used by traditional PoS networks to safeguard their blockchains. For instance, on Ethereum, stakers can lock up their money on the network to help strengthen network security and receive incentives.

According to Babylon, the majority of this money is now being used to protect existing networks and protocols, whereas emerging chains frequently struggle with having insufficient staking resources, which compromises the safety of their network.

These new PoS networks will be able to inherit security from one of the most secure chains in the world by using bitcoin (BTC) rather than their local tokens, the business says.

David Tse, a co-founder of Babylon, states that the company intends to eventually turn Bitcoin into the security foundation for PoS networks in a news release that Blockworks has read.

As soon as the MVP is released, users will be able to test out Bitcoin staking via a simple web application, according to Tse. After launch, the team will concentrate on getting their protocol adopted by the Cosmos ecosystem.

“Our approach seamlessly integrates Bitcoin staking with almost any PoS protocol in a modular fashion, allowing any Bitcoin holder to earn staking rewards from a wide variety of PoS chains. This not only amplifies economic incentives but paves the way for broader adoption, underscoring Bitcoin’s diverse utility beyond its widely recognized role as a store of value.” Tse concluded.

Image: Wallpapers.com

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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