Binance Labs Invests in Babylon Protocol to Support the Advancement of Bitcoin Staking
In Brief
Bitcoin staking protocol Babylon raised an investment from Binance Labs to enhance its development ahead of upcoming launch.
Venture capital and incubation arm of the cryptocurrency exchange Binance, Binance Labs invested in Bitcoin (BTC) staking protocol Babylon. The specific amount of the investment remains undisclosed.
Babylon is at the forefront of introducing the native Bitcoin staking concept, enabling users to stake bitcoins for Proof-of-Stake (PoS) blockchains. This approach allows users to earn yields without the need for third-party custody, bridge solutions, or wrapping services. The protocol offers slashable economic security guarantees to PoS chains, simultaneously optimizing the stake unbonding process to improve liquidity for Bitcoin holders.
“Bitcoin staking introduces a crucial new use case for the industry, marking a significant stride in the integration of Bitcoin with the PoS economy. Binance Labs’ investment in Babylon represents our commitment to supporting innovative projects leading the Bitcoin narrative and advancing its use cases,” said Yi He, Co-Founder of Binance and Head of Binance Labs.
Built utilizing the open-source framework for PoS blockchains Cosmos SDK, the Babylon chain offers Bitcoin timestamping services to PoS chains and serves as a control plane for synchronization between the Bitcoin network and the PoS chains. It plays a pivotal role in facilitating BTC staking, participating in finality rounds, and tracking validator staking information. Ultimately, it acts as a bridge connecting the Proof-of-Work (PoW) world of Bitcoin with the PoS chains.
Babylon Revolutionizes Bitcoin Scaling, Plans Launch in April
Founded in 2022 by Stanford Professor David Tse and Dr. Fisher Yu, Babylon is a blockchain project dedicated to designing security-sharing protocols for the decentralized economy. Babylon aims to enhance the security of the decentralized economy by scaling Bitcoin.
Thus, it harnesses Bitcoin’s asset, dependable timestamping service, and its position as the most censorship-resistant blockspace globally. Currently, Babylon is developing security-sharing protocols such as Bitcoin Staking Protocol, Bitcoin Timestamping Protocol, and Bitcoin Data Availability Protocol. Last year, the Babylon team raised $18 million in funding from investors including Polychain Capital and Hack VC, through a combination of equity and token warrant rounds to accelerate project development.
According to David Tse, the Babylon protocol is anticipated to launch around the time of the next Bitcoin halving–in April 2024. Once operational, the Babylon chain protocol will function as the control plane, facilitating coordination between Bitcoin and PoS chains.
The new investment and support from Binance Labs signal a milestone in Bitcoin staking innovation, solidifying Babylon’s position as a leader in reshaping Bitcoin’s narrative.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
