Babylon Chain is a ground-breaking primitive that aims to expand the strong security framework of Bitcoin in order to safeguard and strengthen the decentralized economy. Bitcoin owners now have the unheard-of chance to safely earn yield on their BTC without giving up control or using outside services thanks to the innovative Bitcoin Staking Protocol. Enabling membership in various Proof-of-Stake (PoS) blockchains with a trustless, self-custodial solution that avoids the complexity of bridging or wrapping Bitcoin, this Cormos-SDK based protocol prioritizes user sovereignty and maximizes liquidity.

The Shared Security Protocol, at the heart of Babylon's invention, successfully removes the traditional concerns connected with incorporating Bitcoin into other networks. The protocol provides a smooth, safe extension to different PoS chains while defending against possible PoS attacks by preserving Bitcoin's security and integrity. This highlights the importance of Bitcoin as the basis for decentralized security and expands its usefulness beyond simple asset ownership. Babylon Chains integrates blockchains like Akash Network, Osmosis, Terra, etc.

How Babylon Chain Works

By creating a two-sided marketplace through a staking protocol, Babylon Chain presents a ground-breaking method of using Bitcoin to secure PoS chains. On the one hand, PoS chains need more security and are prepared to pay more for it. Conversely, investors in Bitcoin aim to generate returns on their investments. Strong security is guaranteed by this protocol for both parties: PoS chains obtain the security required to operate effectively.

Security Properties

Fully Slashable PoS Security: Enables a large percentage of the Bitcoin stake to be slashed in the event of a safety breach, preserving the PoS chain's integrity. This is known as fully slashable PoS security.

Staker Security: Provides a trustless staking experience by guaranteeing that stakers can always withdraw their assets as long as they follow the protocol.

Staker Liquidity: Increases liquidity by enabling the safe and speedy unbonding of staked Bitcoins without requiring approval from the community.

Risks Associated with Bitcoin Staking

Technical risks

Regulatory risks

Market risks

Operational risks