In the evolving landscape of blockchain technology, the quest for enhanced security in Proof-of-Stake (PoS) networks has led to innovative solutions that seek to leverage existing digital assets for greater economic security. One of the central challenges facing PoS chains is the need for substantial capital to be locked in, serving as a foundation for the chain’s security. This requirement often results in high native token inflation as chains strive to overcompensate for perceived security needs.
Enter Babylon, an ambitious initiative designed to redefine the security paradigm for PoS chains by harnessing the untapped potential of Bitcoin, the most significant digital asset in the crypto realm. With its fixed supply of 21 million coins, Bitcoin represents a vast reservoir of value, largely unutilized in the context of blockchain security. Babylon is a trustless and self-custodial staking protocol that leverages Bitcoin scripts and cryptographic techniques to enable Bitcoin staking across traditional PoS chains. The result is a secure method that allows PoS chains to potentially access ~$ 1 trillion in idle Bitcoin.
Persistence One will collaborate with Babylon to bring BTC Security to secure its liquid staking and restaking ecosystem.
Could this be pivotal in Persistence One’s quest for a more secure and resilient blockchain ecosystem? Let’s dive in 👇🏼
Bitcoin Staking Protocol: Babylon
Bitcoin staking is a two-sided marketplace. On the one side are PoS chains, which need security and are willing to pay yields for it. On the other side are bitcoin holders with the capital who want to earn yield. A Bitcoin staking protocol is a security-sharing protocol that realizes this two-sided marketplace. A good Bitcoin staking protocol should provide strong security guarantees to both the consumer PoS chains (so that they are willing to pay yield for it) and the provider Bitcoin holders (so that they are comfortable to stake).
Babylon will allow Bitcoin holders to simply lock their Bitcoins in a self-custodial way to gain the rights to validate PoS chains and earn yields as a return. PoS chains and dApps can opt-in to Bitcoin-backed security and enjoy high security, healthy economics, and broader adoption. Babylon’s protocol is designed with modularity, ensuring it can seamlessly secure any PoS chain. Moreover, it introduces a scalable restaking model for Bitcoin holders, enabling them to validate on multiple PoS chains simultaneously.
Babylon introduces a novel security mechanism by applying extract one-time signature (ETOS), transforming the landscape of PoS network defense. This technique ingeniously converts slashable PoS attacks into cryptographic key extraction and Bitcoin UTXO burning, thus deterring malicious activities through economic disincentives. Bitcoin holders are incentivized to participate in this security model through staking, facilitated by a built-in time-locking feature inherent to the Bitcoin network. In addition, Babylon offers Bitcoin timestamping service, which allows other blockchain networks to synchronize with Bitocin, ensuring a seamless and robust Bitcoin staking integration with fast unstaking.
Synergies between Babylon and Persistence One
The collaboration between Babylon and Persistence One is a testament to a longstanding partnership fostering innovation. Since April 2023, Persistence One has been a part of Babylon’s Timestamping testnet, marking the beginning of a synergistic relationship to enhance blockchain security and utility. Recently, the trustless native Bitcoin staking went LIVE on the Babylon Testnet. Persistence One will closely follow up to integrate with Babylon to bring Bitcoin Security to the Persistence chain testnet, followed by the Mainnet integration.
Persistence One is one of the first Cosmos app chains and has been relentlessly building at the edge of the Proof-of-Stake landscape since 2019. It is a purpose-built Layer 1 on a mission to maximize yield and security through Liquid Staking and Restaking.
Currently, the XPRT bonded ratio (% of token supply that is staked) defines the economic security of the Persistence. Historically, the Persistence core-1 chain has maintained a ~75%+ bonded ratio, one of the highest among all PoS chains in crypto. Leveraging the power of the Babylon chain will help unlock billions of dollars worth of potential BTC security and increase the Persistence chain’s economic security by a large percentage.
Persistence One is proud to join hands with Babylon to ensure the highest level of security for its ecosystem.
“I’m really excited about Persistence One leveraging Bitcoin security via Babylon and unlocking the potential of 21 million BTC to secure the chain. What could be better than a collaboration between two ecosystems with a shared vision of maximizing yield for users while ensuring the highest level of security”
-Mikhil Pandey