Babylon Unveils Minimum Viable Product (MVP) For Its BTC Staking Protocol
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.
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