Babylon, a crypto security blockchain company, has unveiled its minimum viable product (MVP) for a Bitcoin staking protocol. The announcement was made at the Cosmoverse in Istanbul, Turkey. The company aims to utilize idle Bitcoin to build economic security for proof-of-stake chains.
According to Glassnode, around 66% of Bitcoin’s circulating supply, which is approximately $329 billion, remains inactive. Babylon wants to tap into this dormant Bitcoin and channel it towards enhancing the security of proof-of-stake chains.
Earlier this year, the Babylon team released a Bitcoin timestamping protocol, which could be used by proof-of-stake networks to strengthen their long-range security. They later unveiled a Bitcoin staking litepaper, which aimed to repurpose idle Bitcoin sitting in wallets and use it to secure proof-of-stake chains.
Traditional proof-of-stake chains rely on their native assets to secure their blockchains. For instance, stakers on Ethereum can lock up their funds on the network to enhance security and earn rewards.
Babylon highlights that a significant portion of this capital is currently dedicated to securing established networks and protocols. As a result, emerging proof-of-stake chains face challenges due to limited staking resources, undermining the security of their networks.
By utilizing Bitcoin instead of native tokens, these emerging proof-of-stake chains can inherit security from one of the most secure chains in the world, according to Babylon.
David Tse, co-founder of Babylon, expressed the company’s goal to transform Bitcoin into a security backbone for proof-of-stake chains. He explained that their approach seamlessly integrates Bitcoin staking with various proof-of-stake protocols, allowing any Bitcoin holder to earn staking rewards from different PoS chains. Tse believes this not only amplifies economic incentives but also paves the way for broader Bitcoin adoption, showcasing its versatility beyond being a store of value.
The MVP launch will enable Bitcoin holders to test Bitcoin staking through a user-friendly web application. Babylon’s team will primarily focus on the adoption of its protocol in the Cosmos ecosystem after the launch.
In summary, Babylon’s MVP for a Bitcoin staking protocol offers a solution for utilizing idle Bitcoin to enhance the security of proof-of-stake chains. By tapping into Bitcoin, emerging PoS chains can benefit from the security of one of the most robust chains in the crypto space. This innovation could potentially pave the way for greater adoption of Bitcoin and bolster the security of the PoS ecosystem.
