Babylon Pioneers Bitcoin Staking Mainnet Unlocking New Utility

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Bitcoin Staking

Babylon's Bitcoin staking protocol uses a PoS system to earn rewards.Babylon Pioneers Bitcoin Staking Mainnet Unlocking New Utility

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Babylon's Bitcoin staking protocol uses a PoS system to earn rewards.

Protocol suite Babylon launched the first phase of its self-custodial Bitcoin staking Mainnet on August 22, introducing a new utility for Bitcoin.

In an X post, Babylon announced the new protocol, which enables holders to stake their Bitcoin via smart contracts.

The platform has already amassed over 12,720 stakers and 20,610 staking delegations, according to Babylon’s website.

This development expands Bitcoin’s use cases beyond its traditional roles as a store of value or means of payment, allowing it to participate in securing proof of stake (PoS) networks and earn rewards.

Earn Passive Rewards Bitcoin: How Babylon’s Staking Works

Staking allows Bitcoin holders to lock their BTC using the Babylon protocol’s trustless and self-custodial staking script for a predetermined time.

The process is trustless and self-custodial, meaning it doesn’t rely on any intermediaries, and the BTC holders maintain control over their Bitcoin while it is locked.

Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and secure the network.

In PoS, validators are chosen to create new blocks and confirm transactions based on the number of coins they hold and are willing to “stake” as collateral. This voting power allows them to influence the consensus process of the PoS system.

BTC holders can earn rewards from the PoS protocol in return for providing voting power.

Finality providers perform the voting. A BTC staker can create a finality provider by itself and self-delegate or delegate its voting power to a third-party finality provider.

BTC stakers can either set up their finality provider, thereby directly utilizing their voting power, or delegate their voting power to an established.