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Babylon, the blockchain project with a mission to transform Bitcoin into a decentralized staking asset, has taken a significant step forward by unveiling its Bitcoin Staking Protocol Minimum Viable Product (MVP) at the Cosmoverse 2023 conference.
The Bitcoin Staking Protocol MVP marks a significant stride toward unlocking the full potential of idle bitcoins while enhancing the security and economic health of PoS chains. This innovative approach has garnered support from within the industry and showcases the ongoing evolution and diversification of the blockchain and cryptocurrency space.
Unlocking the potential of dormant Bitcoins
Recent data from Glassnode revealed that a substantial 66% of Bitcoin’s circulating supply, equivalent to 12.26 million BTC, remained untouched for a year. Babylon has seized upon this untapped potential, positioning these idle Bitcoins to enhance the economic security of Proof of Stake (PoS) chains and decentralized applications (dApps) that rely on staking.
Babylon aims to connect the $500 billion decentralized trust ecosystem to yield generation for providing security capital. This groundbreaking initiative has garnered support from prominent Cosmos chains, which are eager to adopt Babylon’s Bitcoin Staking Protocol.
Transforming Bitcoin into a security Backbone for PoS chains
Traditionally, PoS chains rely on their native assets for security, leading to resource constraints for emerging chains. Babylon’s Bitcoin Staking Protocol offers an elegant solution by allowing PoS chains to stake Bitcoin rather than their own tokens. This enables these chains to tap into the world’s largest cryptocurrency as a source of high-security capital.
Moreover, the protocol’s innovative approach significantly reduces inflation pressure on PoS chains, addressing one of the sector’s longstanding challenges.
“Babylon’s protocol doesn’t just harness these idle Bitcoins; it transforms them into a security backbone for PoS chains,” said David Tse, Co-founder of Babylon. This approach seamlessly integrates Bitcoin staking with almost any PoS protocol, amplifying economic incentives and expanding Bitcoin’s utility beyond its role as a store of value.
Cosmos ecosystem adoption and funding
Babylon is set to focus on adoption within various ecosystems, with particular emphasis on the Cosmos network of blockchains. In the Cosmos ecosystem, the top ten protocols have over $2.5 billion worth of staked assets, demonstrating significant potential for Babylon’s innovative protocol.
Notably, Babylon secured seed funding from well-known backers such as IDG and Breyer Capital, who have previously supported industry giants like Coinbase and Circle. This financial backing will play a pivotal role in advancing the development and adoption of the Bitcoin Staking protocol.
The post Babylon unveils innovative Bitcoin Staking Protocol MVP at Cosmoverse 2023 appeared first on Invezz.
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