blockworks.co
Crypto security blockchain Babylon has revealed a minimum viable product (MVP) of its Bitcoin staking protocol today at Cosmoverse in Istanbul, Turkey.
According to Glassnode, over 66% of bitcoin’s circulating supply — roughly $329 billion — is sitting idly. Babylon aims to tap into the dormant bitcoin and use it to build economic security for proof-of-stake chains.
Earlier this year, the Babylon team released a bitcoin timestamping protocol that proof-of-stake (PoS) networks could use for enhancing long-range security. It later revealed a bitcoin staking litepaper designed to repurpose bitcoin sitting idly in wallets and use them to help secure PoS chains.
Traditional PoS chains rely on native assets to secure their blockchains. On Ethereum, for example, stakers can lock up their funds onto the network to help enhance its security while earning rewards.
Babylon notes that most of this capital is currently being geared towards securing already-established networks and protocols, and up-and-coming chains often face challenges with having limited staking resources that subsequently undermine the security of their network.
By tapping into bitcoin (BTC) instead of relying on their native tokens, these emerging PoS chains will have a chance to inherit security from one of the most secure chains in the world, the company claims.
Read more: Bitcoin security for proof of stake? Why not, says Babylon
In a press release reviewed by Blockworks, Babylon co-founder David Tse notes that Babylon’s goal is to ultimately transform bitcoin into a security backbone for PoS chains.
“Our approach seamlessly integrates Bitcoin staking with almost any PoS protocols in a modular fashion, allowing any bitcoin holder to earn staking rewards from a wide variety of PoS chains,” Tse said. “This not only amplifies economic incentives but paves the way for broader adoption, underscoring Bitcoin’s diverse utility beyond its widely-recognized role as a store of value.”
The launch of the MVP will enable bitcoin holders to test Bitcoin staking with a straightforward web application, Tse notes. The team will be focusing on the adoption of its protocol in the Cosmos ecosystem after launch.