What is Babylon?

Babylon is designing a suite of protocols that leverage Bitcoin to provide security to Proof-of-Stake (PoS) chains and other decentralized systems. This aims to utilize Bitcoin's value in new ways and strengthen the entire decentralized ecosystem. Babylon's approach is based on the following three Bitcoin characteristics:

• Bitcoin as an Asset: A high-value cryptocurrency
• Timestamping Functionality through PoW Security: Tamper-resistant data protection
• Censorship-Resistant Block Space: Reliability as a decentralized recording medium

Based on these, Babylon is building two main protocols: Bitcoin Timestamping and Bitcoin Staking. These protocols are designed to address the security challenges of PoS chains and create new economic opportunities.

Bitcoin Timestamping: The Key to Protecting PoS Chains

PoS chains, by their nature, have vulnerabilities to certain attacks. In particular, "Long-Range Attacks" are a major threat. In this attack, malicious validators unstake and then create a new fork from past blocks. To prevent such forks, PoS chains can leverage Bitcoin Timestamping.

• Long-Range Attack Prevention: By timestamping PoS chain blocks on the Bitcoin chain, even if an attacker creates a new fork, it prevents that fork from being chosen.
• Stake Unstaking Period Reduction: Timestamping can reduce the unstaking period of a PoS chain from weeks to hours.
• Improved Censorship Resistance: Timestamped transaction information is protected on the Bitcoin chain even if the PoS chain is censored.
• New Chain Bootstrapping: Even new PoS chains with low token value in the initial stages can supplement security externally through timestamping.

Bitcoin Staking: Providing Economic Security

Babylon's Bitcoin Staking protocol allows Bitcoin holders to stake as follows:

• Stake Initiation: Holders lock their Bitcoin in a self-managed contract.
• Validation on PoS Chain: Once staked, the holder (or a delegated validator) validates blocks on the PoS chain and earns rewards.
• Stake Unstaking: If the protocol is followed correctly, holders can quickly unstake their Bitcoin. Conversely, if there is a protocol violation, the staked Bitcoin is confiscated.

The underlying mechanism of the Bitcoin Staking protocol is a control plane that connects Bitcoin and the PoS chain. This control plane performs the following key functions:

• Provides Bitcoin Timestamping services to the PoS chain, enabling it to synchronize with the Bitcoin network.
• Acts as a marketplace, matching Bitcoin stakes with PoS chains, and tracking staking and validation information.
• Records the finality signatures of the PoS chain.

The term "plane" here is a technical term used to refer to a "layer" or "specific area responsible for a function". Specifically, when used in the context of computer networks or distributed systems, "control plane" refers to the layer responsible for control and management functions within the system.

For more detailed project information, please see the Docs.

Babylon raised $88 million in funding from ABCDE, Polychain Capital, Hack VC, OKX Ventures, and others in December 2023, from Binance Labs in February 2024, and from Paradigm, AMBER, Mantle, and others in May 2024.

Babylon will launch "Cap-3," a new phase of self-custodial Bitcoin staking, on December 10, 2024. This follows the successful Cap-1 and Cap-2 phases and provides an opportunity for more participants to utilize Bitcoin staking.

Period

Cap-3 will run for approximately one week (1,000 Bitcoin blocks), starting from BTC block 874088. All valid staking transactions during this period will be eligible.

Staking Limit

The staking limit has been raised to 5,000 BTC. This aims to suppress increases in transaction fees.

If you want to participate in Babylon Bitcoin staking in a self-managed way, you can stake through the BTC Staking Dashboard.

• Access the Dashboard: Access the BTC Staking Dashboard.
• Connect Wallet: Connect a wallet that supports staking (see below for details).
• Select a Finality Provider (FP): Choose an FP to delegate to. Note that delegation means delegating voting rights in the PoS protocol, and Bitcoin itself does not move to the FP.
• Execute Staking: Specify the staking amount according to the instructions.

Eligible Wallets

• Browser Extension Wallets: Bitget Wallet, Keystone, OneKey, OKX Web3 Crypto Wallet, Tomo, Cactus Link
• Mobile Wallets: Binance Web3 Wallet, imToken, CoinEX Wallet, Gate Web3 Wallet, Leap, Unisat (coming soon)
• MPC Wallets: Fordefi Wallet, Colossus X Dfns, etc.

Staking is also possible through exchanges such as Binance and Bitrue. Other exchanges are also planning to support this sequentially.

You can also stake indirectly through a Liquid Staking Token (LST) protocol.

Supported Protocols: Acorn, Babypie, Bedrock, Chakra, etc.

You can also participate through digital asset custodians such as Anchorage and Hex Trust.

For more details on the airdrop, please see Here.

This time, we will explain the procedure when using a cryptocurrency wallet.

Summary of Steps

1. Access the BTC Staking Dashboard
2. Connect a compatible wallet
3. Select a Finality Provider
4. Specify the amount to stake and complete the procedure according to the instructions

Detailed Steps with Images

1. Access the BTC Staking Dashboard

2. Connect a compatible wallet

3. Select a Finality Provider (FP) and delegate Bitcoin's PoS voting rights

4. Specify the amount to stake and complete the procedure according to the instructions