Babylon, a project that aims to create a decentralized economy using Bitcoin, recently introduced the world’s first trustless Bitcoin staking testnet, which is a significant step towards realizing their vision of a Bitcoin-secured Proof-of-Stake (PoS) economy.
This new Bitcoin Staking protocol will allow PoS systems such as PoS chains, Layer 2 solutions, Data Availability layers, and oracles to use Bitcoin as staking capital. As a result, PoS systems can now leverage Babylon’s scalable staking and restaking features, tapping into the vast, untapped potential of the $1 trillion Bitcoin ecosystem.
Testnet Launch: A Safe Haven for Experimentation
The testnet, built on BTC Signet, ensures that real Bitcoin is not at risk, providing a safe environment for public testing. Accompanied by an explorer and a user-friendly web application, the testnet facilitates easy and secure Bitcoin staking trials for Bitcoin holders. Participants completing the testnet process are rewarded with a Bitcoin Staking Pioneer NFT, marking their early involvement in this revolutionary endeavor.
“We are proud to have reached this milestone in our mission to introduce Bitcoin as a trusted security backbone for PoS systems that can not only generate yields, but also foster integrated, secure, and decentralized economies of scale,” said David Tse, Co-Founder of Babylon. “We look forward to working with PoS systems and validators to enhance our network and infrastructure as we enable Bitcoin holders to provide crypto-economic security to PoS systems and earn PoS yields by staking their bitcoins.”
Strategic Collaborations and Milestones
Babylon has made its debut on the testnet after securing $18 million in funding in December 2023 and partnering with Cosmos Hub. This partnership aims to integrate Babylon’s Bitcoin staking protocol into the existing Cosmos ecosystem, which already has around $2.5 billion in staked assets. This integration will enable Bitcoin holders to stake their assets and enhance the security of the Cosmos Hub consumer chains.
“Babylon’s advanced cryptography allows Bitcoin to be used to secure PoS chains, a groundbreaking achievement,” said Jehan Tremback, from the Cosmos Hub team at Informal Systems. “This testnet launch provides a practical demonstration of how Bitcoin can be staked to secure PoS chains. We are following it with great interest, and we can’t wait to integrate Babylon into the products that we build.”