Over 66% of the circulating supply of Bitcoin, which is approximately $329 billion, presently remains dormant. BabylonChain Inc. aims to harness this idle BTC and employ it to establish economic security for Proof-of-Stake (PoS) chains.
Earlier this year, the Babylon team introduced a Bitcoin timestamping protocol that PoS networks could utilize to enhance their long-term security. Subsequently, they introduced a litepaper on Bitcoin staking designed to repurpose inactive BTC in wallets to bolster the security of PoS chains.
Conventional PoS chains depend on their native assets to secure their blockchains. For instance, on Ethereum, stakers can lock their funds onto the network to enhance its security and earn rewards.
Babylon observes that most of this capital currently goes towards securing already-established networks and protocols. Up-and-coming chains often struggle with limited staking resources, which undermine their network security.
So, by utilizing BTC instead of relying on their native tokens, emerging PoS chains have the opportunity to inherit reliable security via Babylon. Co-founder David Tse stated that the ultimate goal for the company is to transform Bitcoin into a security foundation for PoS chains.
The MVP launch will reportedly enable Bitcoin holders to experiment with BTC staking through a user-friendly web application, according to Tse. After the launch, the team will concentrate on fostering the adoption of its protocol within the Cosmos ecosystem.
Babylon Unveils Minimum Viable Product (MVP) For Its BTC Staking Protocol
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
December 21,2024
Chainlink And Shiba Inu Will Work Together To Enhance Interoperability
December 21,2024
Worldcoin Ordered By German Regulator To Delete User Data
December 20,2024
These 3 AI Agents Are Still Going Strong Despite Market Pullback
December 20,2024
Market Braces For Impact As U.S. SEC Faces Possible Shutdown
December 20,2024
Ramaswamy Confirms Twitter Hack As USUAL Partnership Turns Out To Be Fake
December 20,2024
Nexus Attracts Over 1.5M Nodes During Successful Testnet
December 19,2024
Kraken Launches Ink Ahead Of Schedule Due To Overwhelming Community Support
December 19,2024
SUI Continues Strong Momentum After Surging 500% In 4 Months
December 19,2024
Crypto Community Celebrates As Caroline Crenshaw Loses Renomination Bid
December 19,2024
Powell Opposes Bitcoin Reserve Strategy And Denies Central Bank Permission To Hold BTC
December 18,2024
Bitcoin Hits A New ATH Once Again After Touching $108K
December 18,2024