Babylon, a blockchain platform focused on crypto security, has launched its Minimum Viable Product (MVP) for its Bitcoin staking protocol during the Cosmoverse event in Istanbul, Turkey. This move was prompted by the publication of a shocking report by Glassnode, which disclosed that over 66% of Bitcoin’s total supply (worth approximately $329 billion) is not being actively used or circulated at present.
The main goal of Babylon is to use the unutilized Bitcoin reserves and utilize them to strengthen the financial stability of proof-of-stake (PoS) networks, making this inactive digital asset active. This initiative started earlier in the year with the launch of a Bitcoin timestamping protocol that aims to improve security for PoS networks. Expanding on this initial step, they recently shared their vision through a litepaper outlining their plan to convert unused Bitcoin holdings into staking assets and utilize them to enhance security measures for PoS chains.
In the rapidly growing realm of blockchain and digital currency, conventional proof-of-stake (PoS) networks heavily depend on their own core assets to ensure the reliability and protection of their blockchains. For example, the Ethereum platform enables individuals to secure their assets within the system, enhancing its overall security while receiving incentives in exchange.
Babylon is aware that the majority of these resources are presently devoted to defending established networks and prevalent protocols. Consequently, new proof-of-stake (PoS) chains frequently struggle with limited staking resources, which can compromise their network’s security.
Instead of relying solely on the original tokens of Proof-of-Stake (PoS) networks, Babylon’s unique strategy seeks to address this issue by leveraging Bitcoin’s extensive resources. This enables these developing PoS systems to take advantage of the robust security measures provided by one of the world’s most trustworthy and secure chains: Bitcoin. David Tse, co-founder of Babylon, stated in a statement that the company’s ultimate objective is to make Bitcoin a critical source of security for PoS networks.
In simpler terms, Tse described how their method combines Bitcoin staking with different PoS protocols in a flexible way. This means that anyone who holds Bitcoin can earn rewards from various PoS networks. This not only increases the motivation to participate but also promotes the use of Bitcoin for more than just being a reliable investment.
The release of the MVP has allowed Bitcoin holders to delve into the idea of Bitcoin staking via a user-friendly online platform. The Babylon team’s main goal is to encourage the use of their protocol within the Cosmos ecosystem after successfully launching the MVP.
Babylon’s pioneering effort represents a significant milestone in developing blockchain technology and digital currency. By using inactive Bitcoin assets to improve the security of new Proof-of-Stake (PoS) networks, Babylon encourages progress and shows how Bitcoin can be used in more ways than just as a virtual asset. As the cryptocurrency industry continues to advance, Babylon’s staking mechanism for Bitcoin has the potential to greatly influence the trajectory of blockchain security and adoption.