Babylon’s groundbreaking Bitcoin staking protocol is about to launch, offering Bitcoin holders a new way to utilize their assets.
With a three-phase rollout starting on August 22, 2024, this protocol promises to unlock the potential of dormant Bitcoin and enhance the security of PoS systems.
Discover how Babylon could redefine Bitcoin's role in the crypto landscape.
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Babylon’s Bitcoin Staking Protocol Set for August 22, 2024
On August 19, 2024, Babylon, a self-custodial Bitcoin staking protocol, announced the countdown to the launch of its mainnet.
The official release of Babylon’s Bitcoin staking protocol is scheduled for August 22, 2024, and it promises to bring a new use case for Bitcoin, unlocking the potential of nearly $1 trillion worth of dormant BTC.
Led by Stanford University engineering professor David Tse, Babylon has attracted significant attention, securing $70 million in a funding round led by Paradigm earlier this year.
The upcoming mainnet launch is expected to introduce a new way to utilize Bitcoin, expanding its role in the cryptocurrency ecosystem.
Three-Phase Launch of Babylon’s Protocol
According to Babylon’s official announcement, the launch of its Bitcoin staking protocol will occur in three phases, each designed to gradually introduce and enhance the system’s functionalities.
Phase 1: Locking Bitcoin
In this initial phase, Bitcoin holders can submit Bitcoin staking transactions to the Bitcoin blockchain, initiating the staking process. Each transaction will lock the specified Bitcoin within a secure, self-custodial Bitcoin staking script.
Stakers must also specify critical parameters, such as the public key of the chosen finality provider, to prepare for participation in the proof-of-stake (PoS) consensus validation in the next phase.
If stakers hold the private key of the associated finality provider, this delegation is considered self-delegation. Importantly, only voting rights are delegated—staked Bitcoin is never transferred to the finality provider.
Phase 2: Enabling Bitcoin Staking
In the second phase, the Babylon PoS chain will be launched to leverage the security benefits of the Bitcoin locked in Phase 1.
Post-launch, finality providers who received proper delegation in Phase 1 will participate in the consensus to determine the finality of blocks on the Babylon PoS chain.
Additionally, the Babylon PoS chain will activate the Bitcoin timestamping protocol, essential for cross-chain time synchronization, which ensures the security of Bitcoin staking.
Phase 3: Enabling Bitcoin Multi-Staking
In the final phase, the Babylon Bitcoin staking protocol will evolve into a shared security marketplace, allowing any PoS system to utilize the security provided by Bitcoin staking.
Bitcoin holders will have the ability to natively stake the same Bitcoin across multiple PoS systems simultaneously, earning staking rewards from each. The Babylon PoS chain will act as the control plane, coordinating Bitcoin staking across all participating PoS systems.
A Potential Third Use Case for Bitcoin?
Bitcoin (BTC) is primarily known for its use as a "store of value" and for "payments," but Babylon's "staking" could emerge as a significant third use case.
Babylon’s Bitcoin staking is poised to enhance the security of PoS chains and other decentralized applications (DApps), while also activating idle Bitcoin for greater utility.
Babylon’s Bitcoin staking protocol is reported to support several major wallets, including:
- Binance Web3 Wallet
- OKX Web3 Wallet
- Bitget Wallet
- imToken
- Keystone
- OneKey
- Tomo Wallet
Stay tuned for more updates on the latest developments in the Bitcoin ecosystem.
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