How to Stake Bitcoin with Babylon Protocol

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Bitcoin is the world's first and largest crypto asset, having a market value of over $1 trillion. However, Bitcoin also has some limitations, such as high energy consumption, low transaction speeds, and lack of interoperability with other blockchains.

To address these issues, many blockchain projects have developed solutions that allow Bitcoin owners to use their assets on other networks, such as Ethereum, Binance Smart Chain, or Polkadot. One interesting solution is Babylon, a project that allows Bitcoin staking on the Proof-of-Stake (PoS) blockchain.

What is Babylon?

Babylon is a blockchain project that designs a security-sharing protocol with a mission to scale Bitcoin and secure a decentralized economy. Babylon developed the original Bitcoin staking protocol that allows Bitcoin owners to lock up their Bitcoins and choose which PoS blockchain they want to stake and earn returns from.

Babylon's Bitcoin staking protocol provides a trimble guarantee of economic security to the PoS blockchain, while ensuring efficient staking untethering to increase liquidity for Bitcoin owners. The protocol is designed as a plug-in module compatible with various PoS consensus protocols and serves as a basic component for building restaking protocols.

How to stake Bitcoin with Babylon?

To stake Bitcoin with Babylon, you need an OKX wallet to connect to the Bitcoin Signet network and a Keplr wallet to connect to the Babylon network. You will also need a testnet Bitcoin Signet, which you can use to stake in the Babylon Bitcoin Staking app.

Here are the steps to staking Bitcoin with Babylon:

1. Visit the Babylon website and click on the "Start Staking" button.
2. Connect your OKX wallet to the Bitcoin Signet network and your Keplr wallet to the Babylon network.
3. Enter the amount of Bitcoin you want to stake and select the PoS blockchain you want to support. You can choose from several options, such as Ethereum 2.0, Polkadot, Cosmos, or Solana.
4. Send staking transactions to the Bitcoin Signet network, which locks your Bitcoin in a secure vault. This vault has two ejection conditions: 1) timelock after which you can use your secret key to withdraw, and 2) burn this UTXO via extractable disposable signatures (EOTS). In the case of delegation, this EOTS belongs to the validator you delegated.
5. Once a staking transaction is confirmed on the Bitcoin Signet network, you (or your delegated validator) can start validating the PoS network and signing votes for valid blocks using the EOTS secret key.
6. During your validation task, there are two possible paths:
   • Happy Path: In the honest scenario, you follow the protocol and get results. You can then untie through two approaches: 1) waiting for the existing timelock to expire and then pulling; or 2) send a detachment transaction to Bitcoin, which will unlock the Bitcoin and return it to you after the parameterized unbonding period.
   • Unhappy Path: If you behave maliciously, for example, participating in a double-spending attack on a PoS network, the staking protocol ensures your EOTS secret keys are exposed to the public. As a result, anyone can pretend to be you to submit a pruning transaction on the Bitcoin network and burn your Bitcoins. This unhappy path ensures that security breaches are sanctioned, preserving the integrity of the entire system.

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Apa keuntungan staking Bitcoin dengan Babylon?

Staking Bitcoin dengan Babylon memiliki beberapa keuntungan, seperti:

• Keamanan: Anda dapat staking Bitcoin Anda tanpa memerlukan kustodian pihak ketiga, solusi crypto bridge, atau layanan token terbungkus, yang dapat menimbulkan risiko keamanan atau kepercayaan. Anda juga dapat memastikan bahwa Bitcoin Anda aman dan dapat ditarik, selama Anda (atau validator yang Anda delegasikan) mengikuti protokol dengan jujur.
• Imbal Hasil: Anda dapat mendapatkan imbal hasil dari berbagai blockchain PoS dengan menggunakan Bitcoin Anda, yang biasanya tidak memiliki mekanisme staking atau reward. Anda juga dapat memilih blockchain PoS yang sesuai dengan preferensi Anda dalam hal risiko, pengembalian, dan visi.
• Likuiditas: Anda dapat melepaskan ikatan Bitcoin Anda dengan cepat dan aman tanpa memerlukan konsensus sosial. Anda juga dapat memanfaatkan protokol restaking untuk meningkatkan likuiditas lebih lanjut dengan menggunakan token PoS yang Anda hasilkan dari staking Bitcoin sebagai kolateral untuk meminjam Bitcoin lainnya.

Kesimpulan

Babylon adalah proyek blockchain yang inovatif yang memungkinkan staking Bitcoin di blockchain PoS dengan cara yang aman, menguntungkan, dan likuid. Dengan menggunakan protokol staking Bitcoin Babylon, Anda dapat memaksimalkan potensi Bitcoin Anda dan mendukung ekosistem blockchain yang lebih besar. Jika Anda tertarik untuk mencoba staking Bitcoin dengan Babylon, Anda dapat mengunjungi situs web mereka dan mulai staking hari ini.

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How to Buy Bitcoin (BTC) on Bittime

You can buy and sell Bitcoin (BTC) in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.

Bitcoin (BTC) is available on Bittime with the BTC/IDR market pair. To be able to buy BTC IDR on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.

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

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

Also Read:

What is Babylon? Get to Know This New Bitcoin Staking Protocol

Babylon Protocol Receives Funding from Binance Labs

Babylon Launches Testnet for Trustless Bitcoin Staking

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