Binance Labs invests in Babylon to foster Bitcoin staking - Blockchain.News

Binance Labs invests in Babylon to foster Bitcoin staking

Rebeca Moen Feb 28, 2024 06:57

Binance Labs invests in Babylon to foster Bitcoin staking, marking a significant evolution in Bitcoin's utility and PoS blockchain security.

Binance Labs invests in Babylon to foster Bitcoin staking

Binance Labs has announced a significant investment in Babylon, a pioneering Bitcoin staking protocol. This investment signals Binance Labs's commitment to enhancing the utility of Bitcoin and advancing the Proof-of-Stake (PoS) blockchain economy.

Babylon is at the forefront of integrating Bitcoin, the world's largest crypto asset by market cap, with the PoS blockchain paradigm. Unlike conventional staking methods that rely on native tokens of PoS blockchains, Babylon's innovative protocol allows Bitcoin holders to stake their assets directly on PoS blockchains. This mechanism provides a host of benefits, including reduced inflationary pressure on PoS chains and an alternative yield-generating avenue for Bitcoin, which has traditionally been held as a passive store of value.

Yi He, the Co-Founder of Binance and Head of Binance Labs, underscored the significance of this development, noting that it represents a crucial new use case for Bitcoin and a substantial step in its integration with the PoS economy. This investment is part of Binance Labs's broader mission to support innovative projects that lead the Bitcoin narrative and expand its use cases.

The Babylon protocol, built on the Cosmos SDK, offers not only staking but also timestamping services, acting as a bridge that synchronizes the Bitcoin network with PoS chains. At the helm of the project is a team of consensus protocol researchers and seasoned Layer-1 engineers, including Stanford Professor David Tse, a renowned inventor and recipient of prestigious awards like the IEEE Claude E. Shannon Award and the IEEE Richard W. Hamming Medal.

With its innovative security-sharing protocols, Babylon aims to leverage the three primary facets of Bitcoin—its asset value, reliable timestamping service, and censorship-resistant block space—to scale Bitcoin and secure the decentralized economy.

Binance Labs, with a portfolio valued at over $10 billion, continues to be a significant player in the venture capital space within the crypto ecosystem. Its portfolio spans 250 projects across six continents and has a remarkable ROI rate.

The announcement from Binance Labs comes at a time when the cryptocurrency market is increasingly looking for ways to bridge the gap between various blockchain technologies. Bitcoin staking through Babylon could potentially unlock new liquidity and utility for the cryptocurrency, which has long been seen as a store of value rather than a source of passive income.

Image source: Shutterstock