New Startup Aims to Allow Bitcoin Staking on Ethereum and Other Blockchains
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Babylon is a new startup attempting to allow BTC staking on proof-of-stake blockchains like Ethereum and Solana using Bitcoin's timelock mechanism.
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Babylon's method replicates the slashing process typically done by smart contracts without actually needing smart contracts.
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If successful, BTC staking could significantly lower costs and improve security for proof-of-stake chains by tapping into Bitcoin's $838 billion market cap.
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Babylon needs permission from each blockchain's governance before implementing, but is already in talks with major chains like Polygon.
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If adopted, BTC stakers may get lower rewards than native token stakers, but guaranteed BTC yields will still likely prove popular.