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Bittime - Ankr, a Web3 infrastructure providerknown for advances in liquid staking and RaaS, has announced a great collaboration with Babylon. With this partnership, Ankr aims to help Babylon introduce an innovative, trustless Bitcoin (BTC) staking protocol, designed to enhance the security framework of the Proof-of-Stake (PoS) network by leveraging the power of Bitcoin.
Babylon is poised to revolutionize the way PoS systems operate. With its innovative BTC staking protocol, PoS networks now have the opportunity to incorporate Bitcoin as a staking asset, thereby achieving a level of crypto-economic security that exceeds that offered by their native tokens. This strategic move is expected to capitalize on the huge potential of the Bitcoin market, which is estimated to be worth around $1 trillion.
A unique feature of the Babylon BTC staking protocol is its ability to allow BTC stakers to engage in trustless “restaking.” This mechanism reflects the EigenLayer principle and allows users to generate multiple layers of returns.
This not only benefits Bitcoin holders by providing them with an additional income stream. However, it also increases crypto-economic security across participating networks.
What is the Bitcoin Staking Protocol?
Bitcoin Staking Protocol is a mechanism that facilitates slashing in response to security breaches. This mechanism involves disclosing the staker's secret key whenever a security breach occurs.
The protocol uses the latest cryptographic technologies such as extracting one-time signatures (EOTS) to convert cuttable PoS attacks into spendable Bitcoin UTXOs for burning. This primitive, along with Bitcoin's native time-lock, allows Bitcoin holders to stake their Bitcoin and participate in PoS security by simply locking their Bitcoin in the Bitcoin network. There are no third parties involved, and Bitcoin remains safe as long as stakers do not attack the PoS network.
Babylon also implements the most advanced Bitcoin timestamping protocol to enable tight synchronization between Bitcoin and the PoS network, enabling fast unbonding of staked Bitcoins.
Also Read How to Buy Crypto:
What is Ankr's Role in This Collaboration?
In this collaboration, Ankr is tasked with creating Liquid Staking Tokens (LST) for Bitcoin staked via the Babylon protocol. This LST will then be issued on a PoS network secured via the BTC staking protocol.
This innovative approach ensures that while BTC is securely locked on the Bitcoin blockchain, new LSTs are minted on the selected PoS network, increasing both security and liquidity for these networks.
Chandler Song, Co-Founder and CEO of Ankr, expressed his enthusiasm for the project, saying, "As the industry finds new innovative ways to secure blockchain networks while leveraging all available capital to its maximum potential.”
“Ankr is proud to take its place in the technical implementation of Bitcoin Babylon's staking and restaking mechanics. "This will be a very powerful protocol for the Bitcoin community to earn returns while they hold BTC as well as the Web3 developer community to tap trillions of dollars worth of capital to secure the next generation of applications and use cases," he continued.
Fisher Yu, Co-founder of Babylon, echoed similar sentiments, emphasizing the transformational potential of their collaboration with Ankr. “We believe our collaboration with Ankr will spark a new era of decentralized economics secured by Bitcoin.” said Yu.
“By enabling PoS systems to leverage Bitcoin as a staking asset, we are pioneering the path for the trillion-dollar Bitcoin economy to contribute to the security of PoS systems,” he added.
What are the Benefits for Bitcoin and PoS Network Users?
By using the BTC Babylon staking protocol, Bitcoin users can leverage their unused Bitcoin to earn returns from the PoS network of their choice. They can also enjoy maximum liquidity and security, as their Bitcoins remain on the Bitcoin network and do not need to be wrapped, bridged, or sent to third-party storage.
Meanwhile, PoS networks that adopt the BTC Babylon staking protocol can increase their security level by leveraging Bitcoin's large and stable capital. They can also attract more users and developers interested in Bitcoin's potential as a staking asset.
Thus, the BTC Babylon staking protocol offers a win-win solution for both sides of the market, namely Bitcoin holders and the PoS network. This protocol also opens up new opportunities for the crypto industry, by connecting the Bitcoin economy with other decentralized economies.
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.
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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.
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