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Babylon Project: Enhance the security of PoS chains with idle BTC
Providing Additional Security for PoS Chains Using Bitcoin's Security
Bitcoin, as the strongest consensus and the most secure PoW chain, has the potential to provide security services for other blockchains. The Babylon project is dedicated to achieving BTC staking, allowing holders to share over $13 trillion in economic security with other networks and earn rewards without leaving the Bitcoin network.
The core mechanism of Babylon includes:
Remote Staking: BTC is held on the Bitcoin mainnet for staking.
Customized Staking Contracts: Create special types of transactions using Bitcoin scripts and restrictions to achieve staking lock-up.
Cross-chain communication: Using the Cosmos IBC protocol to transmit messages and data between Bitcoin and other chains.
Additional Security Layer: Record the key data hash of the PoS chain onto the Bitcoin blockchain, establishing "checkpoints" to provide an immutable timestamp proof for the data.
The architecture of Babylon includes the Bitcoin mainnet, the Babylon aggregation layer, the IBC communication protocol, and the target PoS chain. BTC holders can choose to stake on the Babylon network, locking BTC on Bitcoin, aggregating PoS data on Babylon, and regularly sending it to Bitcoin to establish "checkpoints."
In terms of security, Babylon uses Schnorr signatures and EOTS( to implement a penalty mechanism for extractable one-time signatures ). If the staker attempts a double spending attack, their private key will be exposed, and the staked BTC will be burned.
Babylon is expected to address the following issues:
Achieve native staking of BTC on the Bitcoin network, providing higher returns.
Reduce the security budget and token emissions of the PoS chain.
Provide PoW security supplement for PoS chains to mitigate long-range attacks.
Increase the threshold for PoS chains to resist active attacks.
Compared to Eigenlayer, Babylon targets the idle BTC market but is limited by IBC support and lacks smart contract functionality. Both provide economic security support for small-scale PoS chains, but they differ in their target audience and specific objectives.