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.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.About The Author
Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
More articles
Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
