Babylon Review: Leading Bitcoin Staking Solution

June 18, 2024 - Around 5 mins mins to read

Babylon was the first to utilize BTC stakes and even the very Bitcoin PoW itself as security assets for other blockchains. It enables a user to stake their Bitcoin into other PoS blockchains without the use of bridges, custodians, and also wrapped tokens.

Babylon Review: Leading Bitcoin Staking Solution

Table Of Contents

What is Babylon?
Main Feature of Babylon
Products of Babylon
Tokenomics
Team and Investors
Roadmap
How to stake sBTC to participate in the Babylon airdrop
Conclusion
FAQs

What is Babylon?

The Babylon is a Cosmos Zone blockchain leveraging the security and decentralization of a Bitcoin network. It allows the staking of Bitcoin into other Proof of Stake blockchains without the need for bridges, custody, or wrapped tokens. Besides accentuating merely on the use cases for Bitcoin as a store of value, this is an extension of the rich security features of Bitcoin into other blockchains and applications:

Enhance security for PoS chains, especially new ones.
Empower Bitcoin holders to earn profits rather than merely waiting for BTC to appreciate.

Main Feature of Babylon

The architecture primarily consists of three components:

Bitcoin as a timestamping service whereby any data, including that of PoS blockchains, can be verified on the Bitcoin network.
The Babylon chain as a verifier/aggregator of checkpoints for PoS chains.
PoS chains and other dApps as consumers of Bitcoin security.

Babylon has many use cases:

Rapid unstaking: Using the security of Bitcoin via Babylon, PoS chains can allow unstaking in hours instead of more than 20 days.
New chain launches: Allows for new chains to launch in a much more secure way, as when any chain launches, they have low staked asset value.
Protection of significant transactions: After Babylon, such critical transactions may be safeguarded.

Products of Babylon

Babylon Chain

The Babylon Chain implements a PoS consensus mechanism where the Bitcoin itself would serve as staking collateral for Validators, which will make it the very first chain allowing for the staking of the tied-up Bitcoin assets. The Babylon Chain Network utilizes the Bitcoin network in order to strengthen the Layer 1 PoS networks.

Bitcoin Timestamping

The protocol sends verifiable but compact time-stamps of any data to the Bitcoin network in this case, PoS blockchains. The protocol collects the block numbers from PoS chains and condenses them into short code recorded into the Bitcoin block. The security of the PoS chains is ensured as projects link their projects from Babylon through an IBC bridge.

Bitcoin Staking

This allows the employment of Bitcoin as a collateral. It brings security economics to decentralized systems through Trustless Staking/self-custody.

Tokenomics

As of now, the tokenomics data is unmeterarial. CoinCu will list it once there are more details on it.

Team and Investors

Team

David Tse – Co-Founder: He holds a graduation degree in Electrical Engineering from MIT and then pursued being a professor after his research at Stanford University.

Mingchao Yu – Co-founder & CTO: He has his Ph.D. from The Australian National University, and experience working as an engineer for InterfereX and Dolby Laboratories. He is also the Executive Director at Hash Laboratories.

Investors

Project has raised in total 26 M from the following prominent funds:

Seed Round (10/03/2023) – $8M- Lead investors: IDG Capital and Breyer Capital
Series A Round (07/12/2013) – $18M- Lead investors: Polychain Capital, Hack VC Other investors: OKX, IOSG, Framework Ventures, ABCDE, and many others.
25 Feb 2024 – Binance Labs amount not disclosed.

Roadmap

The project has yet to release an official road map.

How to stake sBTC to participate in the Babylon airdrop

Step 1: Download and create OKX Wallet

Step 2: Switch to BTC Signet network

Open OKX Wallet and select the icon on the top right
In the search box, enter “BTC Signet” and select the BTC Signet network

Step 3: Faucet sBTC

Method 1 : Go to Signet Faucet use your wallet address
Method 2: Go to Babylon’s Discord, under the “faucet-signet-btc” channel and type “!Faucet “

Step 4: Stake sBTC

Go to: Chain Stake
Connect via OKX Wallet to stake with sBTC
Note that’s a limited time staking and the project will shortly make an announcement regarding that. You may just have to follow Babylon’s X page or discord to get updated either way.

Step 5: Do tasks in Galxe

Conclusion

The new initiative of Babylon utilizes the Bitcoin blockchain for boosting the security of Proof-of-Stake chains, which benefit more significantly due to new projects. It provides BTC staking to allow holders to receive extra profit and attract huge capital.

CoinCu finds this project really promising. This might attract huge capital from BTC to layer 1s, and due to the fact that the project is at the testnet stage, opportunities for airdrops hunting are still very promising.

FAQs

1. How does Babylon guarantee security, safety, and integrity of the staking platform?

Babylon implements various security measures ranging from encryption to auditing of smart contracts to ensure that User assets and Deal-making are both safe.

2. How does Babylon address the problem of classic staking methods as implemented in Bitcoin, for instance?

By generating a new class of assets class-bBTC, for example, users were allowed to stake their Bitcoins directly, no longer having to make a conversion to a different coin.

3. Does Babylon offer any other type of services or features along with its staking solution?

It could, one day, explore what additional services and features, including lending and borrowing, would help make urable its users’ staked assets on Babylon’s platform.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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