With the rapid development of blockchain technology, the concept of shared security is receiving more and more attention. Ethereum’s EigenLayer shows how security can be shared with other blockchains by borrowing the security of its consensus layer. If this concept is applied to Bitcoin, what changes will it bring?
Shared security extending into the Bitcoin space
As "digital gold", Bitcoin has significant advantages in security and consensus mechanisms. Pan Zhixiong, founder of ChainFeeds, said that Babylon Chain uses middleware to borrow the security of Bitcoin to other PoS (Proof of Stake) chains, thus proposing a new shared security method.
pSTAKE’s Bitcoin Liquid Staking Testnet Launches
Pan Zhixiong said that pSTAKE recently launched a Bitcoin liquid pledge solution test network based on Babylon. This solution provides users with more income options and enables the original Bitcoin chain to be pledged without the risk of cross-chain assets. He also compiled relevant key technologies:
EOT technology (Extractable One-Time Signatures): This technology implements a penalty mechanism similar to PoS on the Bitcoin network. If a signer uses the same private key to sign different messages, their private key will be disclosed, allowing the community to impose financial penalties for violations.
TimeLock technology: This technology allows users to set a specific UTXO so that it cannot be used before a certain point in time or block height in the future. Combined with EOT technology, it ensures the security of locked Bitcoins on the Babylon platform.
Bitcoin Timestamp Protocol: Any data submitted to Babylon can obtain a Bitcoin timestamp. This can not only determine the orthodox fork after the PoS chain encounters a "long-range attack", but also reduce the pledge unbundling time of the PoS chain from a few weeks. Reduced to one day.
Current Progress on Babylon and pSTAKE
Pan Zhixiong said that although Babylon has not yet been launched on the main network, its performance in Testnet-4 Cap 3 has demonstrated its development potential. The current total lock-up value has reached 708 Signet BTC, attracting more than 300,000 user participation.
As part of the Babylon ecosystem, pSTAKE recently launched a Babylon-based Bitcoin liquid staking solution testnet, which is also the only BTC LSD token on the market. Users stake Bitcoin into the Babylon ecosystem through pSTAKE, and can participate in other DeFi ecosystems through the tokens obtained, thereby earning additional income. As of now, more than 20,000 users have participated in the pSTAKE test network, and the total amount of deposited Bitcoins exceeds 19.
Babylon and pSTAKE are starting to gain traction
Pan Zhixiong said that the development of Babylon and pSTAKE has also attracted the attention of Binance Research. In its recently released Industry Map report, several projects such as Babylon, pSTAKE, BounceBit and Lorenzo were specifically mentioned as active in the Bitcoin liquid staking field.
According to current market data, Bitcoin’s total market capitalization is approximately $1.249 trillion, more than three times the market capitalization of Ethereum. This means that even if only 1% of Bitcoins were staked, it would be enough to provide over 10 billion dollars of security to the market.
Babylon uses its unique technology to introduce Bitcoin to other ecosystems in a trustless manner, showing great potential for development. As an important participant in the Babylon ecosystem, pSTAKE provides users with diversified investment and income opportunities based on it. Currently, participating in its test network may be an opportunity to obtain more income.
Pan Zhixiong believes that through these innovative technologies, Bitcoin can not only maintain its status as "digital gold", but also play a greater role in the broader blockchain ecosystem. The further development of Babylon and pSTAKE deserves our continued attention.
This article New Exploration of Bitcoin Shared Security: Babylon and pSTAKE Liquid Staking Solution first appeared on Chain News ABMedia.