BOB, the “hybrid layer-2” community in search of to make Bitcoin the middle of the decentralized finance (DeFi) universe, has taken a step towards that objective by integrating with BTC restaking protocol Babylon.
An abbreviation of “Construct on Bitcoin,” BOB’s intention is to set up Bitcoin because the foundational community for DeFi by creating bridges between itself and different blockchains, utilizing Bitcoin because the anchor chain to finalize transactions.
Integrating with Babylon kinds a part of BOB’s roadmap by giving it “Bitcoin finality,” the purpose at which a transaction is everlasting and irreversible on the oldest blockchain. Property deposited from different chains on BOB could be confirmed and verified on Bitcoin through Babylon’s protocol.
Babylon, which is billed as a means of utilizing BTC to safe different protocols and decentralized purposes, is the foremost Bitcoin staking mission within the sector, with complete worth locked (TVL) of round $6 billion.
Staking refers to providing up crypto tokens to help the working of a blockchain community in return for rewards, much like accruing curiosity in a checking account.
Such a course of is prime to networks like Ethereum and Solana which run on a “proof-of-stake” mechanism, however is absent from Bitcoin, which use “proof of labor.”
Nevertheless, provided that the overall market cap of bitcoin is bigger than each different crypto asset mixed, tasks like Babylon are exploring methods of tapping into BTC’s deep reserves to profit the broader business.
This week, Babylon accomplished its third staking spherical wherein it took its complete BTC staked to 57,290 ($5.93 billion), inserting it within the prime 10 protocols by TVL, in response to knowledge tracked by DeFiLlama.
BOB’s subsequent step is to launch bridges connecting Bitcoin to different networks, utilizing BitVM, a computing paradigm designed to permit Ethereum-style good contracts on the world’s unique blockchain. BitVM is about for testnet launch in Q1 of 2025.
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