Binance Labs is investing in Babylon, a Bitcoin (BTC) staking protocol.
According to a new announcement from Binance, Binance Labs, Binance’s venture capital arm and incubator, is investing in Babylon, a new BTC staking protocol.
“Binance Labs… has invested in Babylon, a Bitcoin staking protocol that pioneers the concept of native Bitcoin staking allowing users to stake Bitcoins for PoS [proof of stake] blockchains and earn yields without any third-party custody, bridge solutions or wrapping services. It provides slashable economic security guarantees to the PoS chains while ensuring efficient stake unbonding to enhance liquidity for Bitcoin holders.”
Bitcoin is a proof-of-work (PoW) blockchain, while many other smart contract platforms like Ethereum (ETH) are proof-of-stake blockchains. Both terms refer to the blockchain’s consensus mechanisms.
“Babylon’s Bitcoin Staking Protocol provides a way for PoS chains to acquire staking capital from the largest crypto asset in the world instead of their native token thereby reducing PoS chain’s inflationary pressure and unlocking new utility for their tokens.”
According to the announcement, Babylon also provides more utility to the BTC chain, which has been historically used as a store of value.
Built on Cosmos (ATOM), Babylon seeks to act as a middleman between PoW and PoS blockchains.
Says Co-Founder of Binance and Head of Binance Labs Yi He,
“Bitcoin staking introduces a crucial new use case for the industry, marking a significant stride in the integration of Bitcoin with the Proof-of-Stake economy. Binance Labs’ investment in Babylon represents our commitment to supporting innovative projects leading the Bitcoin narrative and advancing its use cases.”
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- Source: https://dailyhodl.com/2024/02/27/binance-venture-capital-arm-announces-investment-in-bitcoin-staking-protocol-babylon/
