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Binance Backs Babylon to Unlock Bitcoin Staking on PoS Chains – Crypto News

Published

1 year ago

February 27, 2024

Dripp

Binance Labs, the venture capital and strategic initiative arm of Binance, has made a significant investment in Babylon, a pioneering Bitcoin staking protocol. Babylon, a project initiated by Stanford Professor David Tse and Dr. Fisher Yu in 2022, aims to revolutionize the integration of Bitcoin with Proof-of-Stake (PoS) blockchains. This investment underscores Binance Labs’ dedication to fostering cutting-edge projects that extend Bitcoin’s utility and narrative within the blockchain ecosystem.

Binance Investment Boosts Babylon’s Bitcoin Protocol

Babylon’s flagship offering, the Bitcoin Staking Protocol, introduces the concept of native Bitcoin staking, allowing Bitcoin holders to stake their assets on PoS blockchains. This groundbreaking approach bypasses traditional third-party custodies, bridge solutions, or token wrapping services, offering a more secure and direct staking method. The protocol is designed to provide PoS chains with slashable economic security while ensuring liquidity through efficient stake unbonding processes.

The protocol leverages Bitcoin’s core strengths—its asset value, reliable timestamping service, and unparalleled censorship-resistant blockspace—to enhance the security and functionality of PoS economies. By enabling Bitcoin staking, Babylon reduces inflationary pressures on PoS chains and opens new avenues for utilizing Bitcoin’s capital within the broader blockchain landscape.

Developed on the Cosmos SDK, a framework for creating interoperable blockchains, Babylon bridges Bitcoin’s Proof-of-Work (PoW) infrastructure and PoS chains. The Babylon chain offers timestamping services and acts as a synchronization layer, facilitating BTC staking and tracking validator information across networks.

The project is spearheaded by a team of experts from Stanford’s consensus protocol research groups and seasoned Layer-1 engineers. Their combined expertise and the innovative application of PoW and PoS consensus mechanisms lay the groundwork for Babylon’s ambitious vision.

Babylon’s Mainnet to Broaden Bitcoin’s Blockchain Role

In the testnet phase, Babylon is gearing up for its mainnet launch, scheduled for the second quarter of 2024. Alongside the Bitcoin Staking Protocol, the team plans to introduce additional features such as the Bitcoin Timestamping Protocol and the Bitcoin Data Availability Protocol. These enhancements aim to leverage Bitcoin’s robust timestamping and censorship-resistant features to integrate PoS chains with Bitcoin’s ecosystem further.

The project’s roadmap and alignment with Binance Labs’ strategic vision highlight a shared commitment to advancing the blockchain industry. By bridging the gap between Bitcoin and PoS blockchains, Babylon and Binance Labs can unlock new potential for Bitcoin’s role in the decentralized economy.

In related news, the U.S. Department of Justice (DOJ) has sought to impose stricter bond conditions on Changpeng “CZ” Zhao, the former CEO of Binance, in light of upcoming criminal sentencing related to anti-money laundering law violations. The DOJ’s request aims to ensure CZ’s compliance with court orders pending sentencing, reflecting ongoing legal scrutiny faced by Binance leadership.