The Proof-of-Stake consensus mechanism is an alternative to Bitcoin’s energy-hungry Proof-of-Work, but the downside is that it’s extremely capital-intensive, with each individual chain requiring millions of dollars worth of staked assets to ensure strong security.
At the same time, the majority of the world’s Bitcoin sits idly in user’s wallets, doing nothing at all. Wouldn’t it be wonderful if there was a way to use that Bitcoin to provide much-needed capital to secure PoS chains?
This is the concept behind Babylon, which has just announced the launch of its Bitcoin Staking Protocol MVP at Cosmoverse 2023. Babylon’s creators have devised a clever, cryptographic technique that paves the way for Bitcoin to be staked on PoS chains in a self-custodial way, so those networks can improve their security and generate passive income for Bitcoin holders.
In its litepaper, Babylon explains that it has implemented a cryptographic technique known as an extract one-time signature
We współpracy z: https://cryptodaily.co.uk/2023/10/babylon-protocol-launch-enables-native-bitcoin-staking-to-secure-pos-chains
