Binance Labs Invests in Babylon to Support Bitcoin Staking Progress

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Bittime - Bitcoin is the world's largest crypto asset with a market value of over one trillion dollars. However, Bitcoin only functions as a store of value that does not have many other uses. What can Bitcoin owners do to get more value from their assets?

The answer is Bitcoin Staking, a new concept that allows users to deposit their Bitcoins for blockchains that use a Proof-of-Stake (PoS) mechanism and earn rewards without the need to use third-party services, bridges, or wrappers. This means users can maintain full control of their Bitcoin while supporting the security and development of the PoS blockchain .

What is Babylon?

One project leading this innovation is Babylon, a Bitcoin Staking protocol built using the Cosmos SDK, a framework for creating interoperable blockchains. Babylon has backing from Binance Labs, the venture capital and incubation arm of Binance, the world's largest crypto exchange.

Babylon provides Bitcoin time stamping services for the PoS blockchain and acts as a control plane to synchronize between the Bitcoin network and the PoS blockchain. Babylon is responsible for facilitating Bitcoin Staking, finality round participation, and tracking validator staking information, ultimately serving as a conduit between the PoW world of Bitcoin and the PoS blockchain.

Using the Babylon protocol, users can deposit their Bitcoins in an independent and secure way, and earn the right to validate the PoS blockchain and earn rewards in return. With unique features such as fast unbonding and scalable restaking, users can also enjoy maximum liquidity and returns.

Also read How to Buy Crypto:

What are the Benefits of Staking Bitcoin?

Another advantage of Bitcoin Staking is that it reduces inflationary pressure on the PoS blockchain. Typically, PoS blockchains must rely on their own assets for their security. However, this creates challenges in initiating the security due to the volatile price movements of the asset. Highly inflationary rewards are often awarded and distributed to encourage staking initially, but this can have detrimental economic effects for the asset in the long run.

By using Bitcoin as staking capital, PoS blockchains can reduce dependence on their own assets and open up new utilities for their tokens. Additionally, Bitcoin Staking also increases the security of PoS blockchains by providing economic collateral that can be cut if validators act badly.

Babylon is led by a team of experienced consensus protocol researchers and Layer-1 engineers. The foundation of Babylon is based on research and synthesis of ideas around PoW and PoS consensus. One of Babylon's founders is Stanford Professor David Tse, a member of the US Academy of Engineering.

"Bitcoin Staking introduces an important new use case for the industry, marking a major step in Bitcoin's integration with the Proof-of-Stake economy. Binance Labs' investment in Babylon shows our commitment to supporting innovative projects that lead the Bitcoin narrative and advance its use cases, " said Yi He, Co-Founder of Binance and Head of Binance Labs.

Babylon is one of the projects funded by Binance Labs in the latest round of their incubation program. Binance Labs is the initiator of the Binance ecosystem which aims to empower blockchain and crypto developers by providing capital, advice and resources to launch, scale and make a positive impact in the world.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti. 

To be able to buy crypto assets on 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. 

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.

Also read:

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What is Bitcoin Halving and How Does It Affect Bitcoin?

What is a Bitcoin ATM?

Mining Bitcoin vs Validating Bitcoin Transactions

DISCLAIMER : This article is informational in nature and is not an offer or invitation 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.