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:
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The architecture primarily consists of three components:
Babylon has many use cases:
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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.
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.
This allows the employment of Bitcoin as a collateral. It brings security economics to decentralized systems through Trustless Staking/self-custody.
As of now, the tokenomics data is unmeterarial. CoinCu will list it once there are more details on it.
Project has raised in total 26 M from the following prominent funds:
The project has yet to release an official road map.
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.
Babylon implements various security measures ranging from encryption to auditing of smart contracts to ensure that User assets and Deal-making are both safe.
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.
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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