Babylon Chain, the middleware
#blockchain securing Cosmos-based chains with Bitcoin, just broke $3 billion worth of deposits.
Babylon has seen deposits totaling over 36,100 BTC, worth more than $3.63 billion, as of press time, according to Dune data. The assets were delivered by nearly 88,000 unique depositors. And in the past week, the amount of Bitcoin being deposited jumped by nearly 51.4%.
With nearly $350 million deposited on Dec. 11 and $834 million deposited on Dec. 10, Babylon Chain saw $1.2 billion worth of Bitcoin deposits in 48 hours. Unique depositors also jumped from about 48,000 on Dec. 10 to 62,230 on Dec. 11, adding about 14,250 users in just a day.
This follows an early October report indicating that at the time Bitcoin holders had locked up about 23,000 BTC worth about $1.4 billion on Babylon Chain. The project established a marketplace connecting users looking to lock up their Bitcoin in
#exchange for rewards with proof-of-stake networks looking for valuable assets to secure their networks.
Babylon Chain is a protocol that attempts to integrate Bitcoin’s security features—its Proof-of-Work time stamping, asset liquidity, and censorship-resistant block space—into other blockchain ecosystems.
Bitcoin
$BTC Through its Bitcoin security-sharing protocols, Babylon claims to enable decentralized networks to inherit Bitcoin’s robust security, creating a more secure and trust-minimized foundation for proof-of-stake chains and other decentralized applications.
The sudden jump in deposits follows the world’s leading cryptocurrency exchange
Binance rolling out support for yield-generation through Babylon Chain on Dec. 9. Similarly, competing platform Bitrue also added support for the network on the same day.
Bitrue research team lead Andri Fauzan Adziima told coindatacap that the exchange decided to integrate Babylon Chain because it turns Bitcoin “from just a store of value into something that actively supports blockchain security.”
He also said that Bitrue plans to leverage “Babylon Chain’s Bitcoin-backed security model to build trust, increase activity on the platform, and attract institutional investors.”
“When users feel secure, they’re more likely to participate, and that activity brings in more liquidity,” Adziima said.
What is Babylon Chain?
Babylon Chain is a blockchain protocol that aims to increase the security of Proof-of-Stake (PoS) blockchains by leveraging the power of Bitcoin. It allows Bitcoin holders to stake their BTC without losing custody of their coins, thereby adding a third use case for Bitcoin beyond its traditional roles as a store of value and a means of payment.
Key features of Babylon Chain:
Trustless Bitcoin Staking: Users can stake their Bitcoin without relying on third-party intermediaries, ensuring full control over their assets. Enhanced Security for PoS Chains: By utilizing Bitcoin as collateral, Babylon Chain strengthens the security of PoS blockchains, making them more resistant to attacks. Increased Bitcoin Utility: The protocol expands the use cases of
#bitcoin☀️ allowing it to actively participate in securing and powering other blockchains.
Babylon Chain’s innovative approach has garnered significant attention and investment from prominent venture capital firms. It represents a promising development in the blockchain ecosystem, with the potential to reshape the way Bitcoin and other cryptocurrencies interact with each other.
how does Babylon Chain work?
Babylon Chain leverages Bitcoin’s security to enhance the security of Proof-of-Stake (PoS) blockchains. Here’s a simplified breakdown of how it works:
1. Bitcoin Staking:
Self-Custody: Users retain full control over their Bitcoin throughout the staking process. Trustless Staking: No intermediaries are involved, eliminating the need to trust third-party custodians.Security: Bitcoin’s robust security infrastructure is utilized to secure the PoS chains.
2. Shared Security Model:
Bitcoin as Collateral: Bitcoin acts as collateral to back the security of PoS chains. Enhanced Security: By leveraging Bitcoin’s security, PoS chains become more resilient to attacks.
3. Staking Rewards:
Yield Generation: Bitcoin holders earn rewards for staking their BTC. Incentivized Participation: The reward mechanism encourages participation and contributes to the overall security of the network.
Key Protocols:
Bitcoin Staking Protocol: Enables users to stake their Bitcoin without losing custody. Bitcoin Timestamping Protocol: Leverages Bitcoin’s timestamping service for enhanced security. Bitcoin Data Availability Protocol: Utilizes Bitcoin’s blockspace to ensure data availability and integrity.
Overall, Babylon Chain aims to create a more secure and interconnected blockchain ecosystem by harnessing the power of Bitcoin.
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