Bitcoin Stake New Paradigm: Babylon Provides Additional Security Layer for PoS Chains

The Babylon project aims to enable BTC holders to provide security for other PoS blockchains and earn rewards without leaving the Bitcoin network. This solution leverages Bitcoin's economic security and Cosmos IBC cross-chain communication technology, offering an additional layer of security for PoS chains through a unique stake mechanism.

Core Mechanism

1. "Remote stake": BTC is kept on the Bitcoin mainnet for staking.

2. Customized staking contracts: Use Bitcoin scripts and restrictions to create special transaction types, realizing the staking lock function.

3. Cross-chain communication: Implementing message passing between Bitcoin and other blockchains using the Cosmos IBC protocol.

4. Additional security layer: Hashing critical data from the PoS chain onto the Bitcoin blockchain, establishing "checkpoints" to provide tamper-proof timestamp proof for this data.

Main Advantages

• Allow BTC holders to earn stake rewards while maintaining asset autonomy.
• Provide Bitcoin-level economic security supplement for PoS chains.
• Mitigate the long-range attack risks faced by PoS chains
• Increase the attack threshold for PoS chain activity

Market Potential

The current market size for single-coin yields in Bitcoin is limited, with most BTC in idle status. If Babylon can offer attractive yields like 8%(, it is expected to attract billions of dollars worth of BTC to participate in staking.

![Will the re-staking be introduced to the POW network, is Babylon the airborne garden of Bitcoin?])https://img-cdn.gateio.im/webp-social/moments-bdf8d866c120972e047443940a3a3ad0.webp(

Comparison with Eigenlayer

• Babylon focuses on BTC stake, while Eigenlayer targets the ETH ecosystem.
• Babylon is limited by Bitcoin's lack of smart contracts, and its functionality is relatively restricted.
• Babylon currently primarily serves IBC-compatible chains, while Eigenlayer has a broader range of services.
• Both provide economic security support for small-scale PoS chains.
• Babylon may have advantages in mitigating long-range attacks and shortening the stake lock-up period.

![Will re-staking be introduced to the POW network? Is Babylon the aerial garden of Bitcoin?])https://img-cdn.gateio.im/webp-social/moments-93311efb9889d34872bb658c6e1741f9.webp(

Overall, Babylon has created a new win-win model for BTC holders and PoS chains, which is expected to unlock a large amount of idle BTC value while enhancing the overall security of the PoS ecosystem.

![Will re-staking be introduced to the POW network, is Babylon the sky garden of Bitcoin?])https://img-cdn.gateio.im/webp-social/moments-f87e63f9c8e7d54673209fae120af410.webp(

![Will the re-staking bring POW networks, is Babylon the aerial garden of Bitcoin?])https://img-cdn.gateio.im/webp-social/moments-f46f0103fa929e96eae99ba0c36a3a38.webp(