Babylon: The Dawn of Bitcoin's Reawakening Through Restaking
In just two days, Babylon’s launch is set to reawaken Bitcoin, the "sleeping dinosaur".
Source: X
This is where $1.4 trillion in idle Bitcoin wakes up to meet the security needs of Proof-of-Stake (PoS) chains.
Babylon’s Bitcoin Staking Mainnet goes live in 3 phases:
Phase 1: Bitcoin Locking
Bitcoin holders lock their funds securely, delegating PoS voting power without transferring ownership, to prepare for consensus validation.
Phase 2: Bitcoin Staking Activation
The Babylon PoS chain launches, leveraging locked Bitcoin to secure its consensus and enabling cross-chain time synchronization.
Phase 3: Bitcoin Multi-Staking Activation
Bitcoin evolves into a shared security marketplace, allowing holders to stake across multiple PoS systems simultaneously, earning multiple rewards.
Here’s What You Need to Know about Babylon:
Babylon allows Bitcoin holders to stake their BTC to support PoS chain security.
The shared security model ensures that PoS chains gain robust protection, while Bitcoin stakers enjoy liquidity and the ability to withdraw their funds securely if needed.
Babylon expands Bitcoin’s role beyond a mere store of value into a security backbone for PoS chains.
More Interesting Insights
Source: Interview with Babylon’s founder, David Tse
Slashing Without Smart Contracts
Interestingly, slashing—a mechanism to penalize malicious actions—on Babylon works the same as slashing in Ethereum and Cosmos. The true innovation lies in enabling this slashing mechanism natively on Bitcoin without the need for smart contracts.
There Is (Technically) No Babylon Chain
There is only Bitcoin and the PoS chain. Babylon acts as a timestamp aggregator, preventing all the timestamps from overloading the Bitcoin chain.
Babylon as a Two-Sided Marketplace
Babylon plans to bring in supply from Bitcoin holders and then launch chains to attract demand.
Why Does This Matter to You, a Loyal Bitcoin Holder?
1. Safely Stake Your Bitcoin to Earn Yield Without Giving Up Control
As a Bitcoin holder, you now have the opportunity to safely stake your BTC and earn yield—essentially getting paid for holding your Bitcoin natively.
2. Participate in Securing the Next Generation of PoS Chains
Traditionally, miners have held the power to secure Proof-of-Work chains. Now, Bitcoin holders like you can also take part in safeguarding the security of a chain.
What's Satlayer building on Babylon
Central to SatLayer’s offering is its integration with Babylon, which provides full programmability for slashing support on staked Bitcoin while reducing trust assumptions. This greatly enhances the range of possibilities for developers building Actively Validated Services (AVS) on Bitcoin.
BlockSpaceForce is Building the Bitcoin Ecosystem
BlockSpaceForce is the mission co-command for exceptional teams focused on improving Bitcoin blockspace. We bring years of proven experience driving 9-figure exits, investing and operating in 100x projects, and building the #1 most-used apps in the world to bear — powering the blockspace missions of category pioneers.
We deliver extraordinary outcomes with truly disruptive startups to maximize blockspace as a force for economic progress in the world.
We're here to innovate and build on Bitcoin.
Stay connected with us on X and Linkedin for more news updates and analysis.
Further Reading
Babylon Whitepaper: Read here
Great Explainer by Messari: Read here
Fixing Proof of Stake (with Bitcoin) feat. @dntse: Listen here
Hot Take: Eigen Layer Will Fail While Babylon Will Succeed: Read here
