Bitcoin POS with Babylon

PLUS: BTC runs, politicians align with crypto, infra developments and more

Author

ZUSHAN HASHMI
November 01, 2024

Happy Friday Maestros and welcome to another week of the Bitcoin Renaissance!

We’re looking at Babylon’s Bitcoin POS system this week, alongside key developments as Bitcoin surges towards its ATH with the US election around the corner.

Let’s dive into the key stories from the ecosystem.

PS. Don’t forget to follow us on X

🚀 Featured Stories

Bitcoin to ATH?: Bitcoin has experienced a significant price surge, climbing over 5% in 24 hours, driven by whale activity and ETF inflows, with over $143 million in short positions liquidated.

A Political Bitcoin Shift: Politicians worldwide are increasingly rallying to support Bitcoin, recognizing its potential for economic growth and innovation in the face of regulatory challenges.

Michael Saylor Reaffirms Self-Custody: After facing backlash for promoting regulated custodians, Michael Saylor emphasizes the importance of self-custody for Bitcoin, advocating for individual choice in asset management.

Bhutan Moves $66 Million in Bitcoin: The Bhutanese government has transferred $66 million worth of Bitcoin to Binance, suggesting potential selling pressure while still holding approximately $886 million accumulated through mining.

NYSE Plans Extended ETF Trading Hours: The New York Stock Exchange is looking to extend Bitcoin ETF trading hours to 22 hours daily, pending SEC approval, aiming to enhance market accessibility for international investors.

💡 Spotlight: Babylon Labs - Scaling Bitcoin for PoS Security

Babylon Labs is rapidly evolving the role of Bitcoin in the blockchain ecosystem by allowing Bitcoin holders to directly secure Proof-of-Stake (PoS) systems while maintaining control over their assets. Founded in 2022 by Stanford Professor David Tse and Dr. Fisher Yu, Babylon Labs aims to enhance Bitcoin’s utility beyond its traditional store of value function.

Why Pay Attention?

  1. Innovative Bitcoin Staking: Babylon's protocol enables Bitcoin holders to stake their assets without moving them off the Bitcoin network, thereby preserving self-custody while contributing to PoS security. This approach enhances the security of PoS chains and aligns with the ethos of Bitcoin holders who prefer to retain control over their funds.

  2. Interoperability and Economic Benefits: By creating a two-sided market, Babylon allows Bitcoin to secure other blockchain networks, promising significant economic advantages for both Bitcoin holders and PoS ecosystems. This interoperability could lead to broader adoption and integration of Bitcoin within decentralized finance (DeFi).

  3. Technological Advancements: Babylon employs cutting-edge cryptographic techniques, such as extract one-time signature (EOTS) and advanced timestamping protocols, which facilitate fast unbonding and ensure that staked Bitcoins remain secure against malicious attacks on PoS chains.

Funding Milestones

Babylon has successfully raised a total of $96 million from various venture capital sources:

  • $70 million in a Private Sale funding round led by Paradigm on May 30, 2024.

  • $18 million in Series A funding in December 2023.

  • $8.8 million in seed funding in 2022.

This substantial backing from prominent investors highlights confidence in Babylon's vision and its potential to redefine Bitcoin's role in the blockchain ecosystem.

Market Impact

Babylon's initiative is poised to transform how Bitcoin is utilized in the blockchain landscape. By enabling active participation in DeFi, it could reshape investment dynamics and enhance the overall security framework of PoS systems.

The recent funding rounds underscore investor confidence in Babylon's vision, emphasizing its potential to unlock value from the largely idle Bitcoin.

In summary, Babylon Labs is not just enhancing Bitcoin's role; it is redefining it by integrating Bitcoin into the fabric of PoS security, making it a critical player in the future of decentralized finance.

📣 Trending on X

  • Stacks Upgrade Live: The Stacks Nakamoto upgrade enhances transaction irreversibility and speeds, setting the stage for sBTC.

  • First AMM Swap: The first trustless AMM swap on Bitcoin's base layer has been completed by Saturn.

  • Pizza Pets Launch: Pizza Pets, a new digital pet game on Bitcoin, rewards holders with a fun survival twist.

  • Memento Mori Minting Ends: Minting for Memento Mori has concluded, with over 46 BTC spent.

  • Decentralized Staking: Nomic introduces Babylon’s decentralized Bitcoin staking with Bedrock DeFi on Ethereum.