Binance Labs is investing in Babylon, a Bitcoin (BTC) staking protocol.
In keeping with a brand new announcement from Binance, Binance Labs, Binance’s enterprise capital arm and incubator, is investing in Babylon, a brand new BTC staking protocol.
“Binance Labs… has invested in Babylon, a Bitcoin staking protocol that pioneers the idea of native Bitcoin staking permitting customers to stake Bitcoins for PoS [proof of stake] blockchains and earn yields with none third-party custody, bridge options or wrapping companies. It gives slashable financial safety ensures to the PoS chains whereas guaranteeing environment friendly stake unbonding to reinforce liquidity for Bitcoin holders.”
Bitcoin is a proof-of-work (PoW) blockchain, whereas many different sensible contract platforms like Ethereum (ETH) are proof-of-stake blockchains. Each phrases seek advice from the blockchain’s consensus mechanisms.
“Babylon’s Bitcoin Staking Protocol gives a manner for PoS chains to amass staking capital from the biggest crypto asset on the earth as an alternative of their native token thereby decreasing PoS chain’s inflationary strain and unlocking new utility for his or her tokens.”
In keeping with the announcement, Babylon additionally gives extra utility to the BTC chain, which has been traditionally used as a retailer of worth.
Constructed on Cosmos (ATOM), Babylon seeks to behave as a intermediary between PoW and PoS blockchains.
Says Co-Founding father of Binance and Head of Binance Labs Yi He,
“Bitcoin staking introduces a vital new use case for the business, marking a major stride within the integration of Bitcoin with the Proof-of-Stake economic system. Binance Labs’ funding in Babylon represents our dedication to supporting modern initiatives main the Bitcoin narrative and advancing its use circumstances.”
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