Babylon Launches Testnet for Trustless Staking Bitcoin

Babylon announced the launch of the world's first trustless staking bitcoin testnet today. This innovation allows the integration of Bitcoin, the most decentralized crypto asset, into a Proof-of-Stake (PoS) system , potentially increasing the level of security at which staking currently applies.

Testnet, built on BTC Signet, provides a safe space for users to experience the operational dynamics of staking without risking their real Bitcoin. Users can use explorer and web applications, which provide a hands-on experience.

David Tse, co-founder of Babylon, stated that this achievement is Babylon's mission to introduce Bitcoin as a trusted security backbone for PoS systems that can not only generate profits, but also drive an integrated, secure and decentralized economy of scale.

This milestone is a result of the successful funding of $18 million that Babylon received from Cosmos Hub as well as the partnership between the two, which will enable the integration of the Babylon protocol and Bitcoin users on Cosmos Hub to stake their assets.

This move will have a far-reaching impact on Babylon's mission to deliver a decentralized world centered on Bitcoin.

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Binance Labs Invests in Bitcoin Staking Protocol, Babylon

Previously, before it was announced that Babylon was launching trustless staking for bitcoin, Binance Labs announced its massive investment in this project.

Binance Labs, the $10 billion venture capital and incubation arm of crypto exchange Binance, has invested in Babylon, a Bitcoin staking protocol. This shows their continued interest in the realm of staking and restaking.

The investment amount was not disclosed, but David Tse, Babylon's co-founder, said the structure is similar to Babylon's seed funding and Series A, which combines equity with token warrants. For reference, Babylon raised $18 million in Series A funding in December 2023 and $8.8 million in seed funding in 2022.

Also Read: Understanding Binance Coin (BNB) and its Functions

What is Babylon?

Babylon is a Bitcoin staking protocol that allows BTC holders to stake their coins on the Proof-of-Stake (PoS) blockchain and earn rewards. Basically, this protocol helps BTC become a staking asset on the PoS network, while leveraging its security to strengthen the PoS network itself.

Because currently, PoS networks rely on their native tokens for security, which can be expensive, especially for new networks that often need to offer high staking rewards to attract investors.

For example, the Cosmos Hub ecosystem, where each application can have its own blockchain. Babylon is currently in the process of supporting this ecosystem, as previously reported.

Yi He, co-founder of Binance and Head of Binance Labs stated that Bitcoin staking introduces an important new use case for the industry, marking a significant step in Bitcoin's integration with the Proof-of-Stake economy. Binance Labs' investment in Babylon demonstrates our commitment to supporting innovative projects that lead the Bitcoin narrative and advance its use cases.

Babylon's own PoS chain, built using the Cosmos SDK, will be the first PoS chain secured by the protocol. This will then allow the creation of a market where BTC holders can restake to other PoS networks via Babylon.

With the investment from Binance Labs, Babylon plans to hire more developers and aspires to launch the first phase of their mainnet before the end of this year, Tse said.

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How to Buy Bitcoin (BTC) on Bittime

You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.