In a groundbreaking move in the crypto world, Ankr, a leading Web3 infrastructure provider, partners with Babylon to unveil the world's first trustless Bitcoin (BTC) staking protocol.
This collaboration aims to leverage Bitcoin's security to enhance the security framework of Proof-of-Stake (PoS) networks, unlocking the market potential of Bitcoin, valued at around $1 trillion.
Babylon's Innovative Bitcoin Staking Protocol
Babylon, renowned for innovation in the crypto space, introduces the Bitcoin Staking Protocol, enabling PoS networks to integrate Bitcoin as a staking asset. This promises a higher level of crypto-economic security compared to their native tokens.
The unique feature of Babylon's BTC staking protocol is its ability to enable BTC stakers to engage in "trustless restaking." This mechanism allows users to generate multiple layers of yield, not only benefiting Bitcoin holders with additional income streams but also enhancing crypto-economic security across participating networks.
Ankr's Role in the Collaboration
In this partnership, Ankr is responsible for creating the Liquid Staking Token (LST) for Bitcoin staked through the Babylon protocol. These LST tokens will then be issued on the PoS network secured by the BTC staking protocol, ensuring that while BTC remains locked on the Bitcoin blockchain, new LST tokens are minted on the chosen PoS network to provide security.
Chandler Song, Co-Founder and CEO of Ankr, expressed his enthusiasm for the project, emphasizing that it will be a powerful protocol both for the Bitcoin community to earn yield while holding BTC and for the Web3 developer community to leverage trillions of dollars in capital to secure the next generation of applications and use cases.
Impact on the Decentralized Economy
By enabling PoS systems to utilize Bitcoin as a staking asset, they pave the way for the trillion-dollar Bitcoin economy to contribute to the security of PoS systems. Moreover, Ankr's role extends beyond the creation of LST; the company will also be involved in running validators on the Babylon testnet and developing sophisticated security infrastructure to support Babylon nodes and finality providers.
With Ankr's extensive experience as one of the leading staking infrastructure providers in the industry, this collaboration is set to lay a solid foundation for Bitcoin staking, allowing global BTC holders to generate significant yields while bolstering the security of various PoS ecosystems.
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