- Babylon launched a self-custodial Bitcoin staking Mainnet on August 22, enabling BTC holders to stake via smart contracts.
- Over 12,720 stakers and 20,610 delegations joined Babylon’s platform, highlighting growing interest in Bitcoin staking.
- Babylon’s protocol uses a slashing mechanism to prevent malicious actions, ensuring the integrity of the PoS system.
Babylon has announced the first phase of the launch of its self-custodial Bitcoin staking Mainnet, significantly increasing Bitcoin utility.
This new feature, revealed on August 22, allows individuals to stake their Bitcoin holdings through the use of smart contracts, therefore presenting new opportunities for Bitcoin beyond its traditional use.
Staking Through Smart Contracts
The new Babylon system allows Bitcoin to be staked without trust or through a party in a fully non-custodial and self-custody fashion. In simple words, those having Bitcoin can lock their BTC for any specified duration while being able to have complete control over their assets by eliminating the role of intermediaries.
As per the information available on the Babylon website, it has already attracted more than 12,720 stakers and 20,610 staking delegations, indicating an increasing curiosity about this new feature.
Increasing Bitcoin’s use cases
The introduction of Bitcoin staking marks a significant shift in how Bitcoin is utilized. Bitcoin, which has traditionally been considered as a store of wealth or a means of payment, can now assist secure Proof of Stake (PoS) networks while earning incentives in exchange. This feature allows Bitcoin to participate in the consensus process of PoS systems by providing voting power that can influence network decisions.
Incentive and Security Measures
To protect the integrity of the PoS system, Babylon’s protocol incorporates a cutting mechanism to prevent unauthorized activity. If a finality provider, who is responsible for voting in the PoS system, engages in fraudulent conduct, the Bitcoin staked with them may be partially or fully forfeited. This acts as a powerful disincentive to any attempts to hack the network.
Furthermore, Bitcoin holders have the option of setting up their own finality provider or delegating their voting authority to a third party provider. This flexibility enables participants to interact with the PoS system based on their skills and preferences while earning rewards.
Babylon’s introduction of Bitcoin staking on its self-custodial Mainnet adds a new layer to Bitcoin’s capabilities. This invention, which allows Bitcoin to protect PoS networks and receive rewards, might pave the way for more innovation and trustless applications in the bitcoin industry.
The post Babylon Introduces Bitcoin Staking on Self-Custodial Mainnet, Over 12,720 BTC Stakers Have Joined the Platform appeared first on Crypto News Land.
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