Bitcoin is one of the trusted chain out there. And entire crypto industry looks upto the bitcoin for the digital assets and the altcoin asset value. In such case it'd be reasonable to say that there would be surely research and extensions to be developed that would extend the power of the layer 1. They attempted the layer 2 with the lightning network which makes use of the SATS for the transfer of value.
Now the developers are trying to push their efforts even further by making the layer 2 work into the staking and the digital assets. There is a company named Babylon chain which is currently working on staking the bitcoin and earning the yield in some other altcoin of its own.
Let's take a look at the Babylon bitcoin staking protocol and how it works. We will also take a look at where it's new adoption and usage scenarions are going to be.
How Babylon Protocol works?
Babylon makes use of the proof of stake chain concept. And as you know the POS requires the stakes and the liquid capital. And we all know that bitcoin has that in fact it has like 21M worth of the capital. What if that is moved and hold onto this layer 2 which allows the staking and holding as required. With no fixed lock in and one can take out whenever they want out.
The protocol works exactly on this approach and it makes sure that the staker does not attack the network back and its stakes are removed when that event happesn. So this way the staking protocol makes things easier for the users to stake and remove while earning the yield for their bitcoins stake. So the both parties are going to be safe in this context. You can read about this in the document.
Why Babylon Protocol matters for the consumers?
Babylon has recently got the funding to expand on it's protocol and serve variety of the changes upcoming to the existing protocol updates. Consumers have full freedom to what to stake and what to remove. And it has no bridges, stakes limits and the custodian like most of the stake protocols do in the ethereum world. This staking is scalable and it can get the multiple yields.
All of this while they do maintain the security and the privacy in this process. And also the modular design of the protocol also come into the play there. You may feel like you staked the bitcoin and can't take it out within the time which is not the case with this as you can take it out when you wish to and there would be no change in this for the earning yield. You can read about the protocol more here.
Who is Funding Something like this?
Babylon protocol has been funded in variety of stages by many companies in the venture capital space. And the people who wish to adopt it in their business and for even the general public things are going to be there for the upcoming fundings and the update there. First 18 millions were funded to the project from the Polychain capital and Hack VC. And then next rounds would be from variety of other VC space.
Now even the binance in the race for funding project of promise like this. And they have seen the update since their first round of the funding. So this goes to show that there would be more funding in VC space in upcoming times. Additional 10 million are invested into this project but the possible investment is going to make the protocol deploy quicker. You can read about the binance labs funding here.
Babylon is turning out to be a platform that has the staking and the bitcoin's liquidity power built into the project. So the new investment horizon like this in near future would be good for the consumers.
Posted Using InLeo Alpha