
Haotian | CryptoInsight|Mar 05, 2025 03:12
Recently@ Babylonlabs_io has launched airdrop queries and registrations, giving great expectations to the Bitcoin ecosystem and community, and also announcing the end of Babylon's Phase 1 staking mining campaign. However, if you really understand the principles of Babylon's technology, you will know that staking BTC on the main chain is only Chapter 1, and the launch of Babylon Genesis public chain is the real chapter for Babylon. Here, let's briefly explain:
Babylon's greatest value innovation lies in constructing complex UTXO script contracts on the Bitcoin mainnet, allowing BTC to achieve asset lock up in a secure and non custodial manner. In other words, users' BTC can be locked up on the Bitcoin mainnet in a self custodial form, while also having Staking mining income rights on other POS chains?
The question is, if the lock up is only on the Bitcoin mainnet, how can it be applied to other POS chains to become an effective lock up asset and provide secure consensus protection for the POS chain? The answer lies on the Babylon Genesis chain.
The Babylon Genesis Network (BSN) is a POS chain built on the Cosmos SDK. When Babylon locks BTC onto the main network through cryptographic algorithms, it acts as a remote secure staking system. However, in order to achieve remote asset scheduling and management, the system also requires a chain with "programmable capabilities" to build consensus. The Genesis chain is a unified verification layer and interactive operation layer that helps Babylon protocol convert BTC assets on the main network into secure consensus capabilities of other POS chains.
Through the orderly coordination of the Genesis chain (brain center), Babylon can enable the BTC (insurance vault) locked on the Bitcoin main network to generate practical use cases on other POS chains and thus have revenue (source of income). At the same time, it can also emulate Eigenlayer to encapsulate this secure consensus capability as a commodity and provide it to more Bitcoin second layer POS chains to expand revenue sources and commercial portfolio imagination.
Only by sorting out this layer of logic can we understand that the true value of the Babylon protocol is not how many assets are locked on the main network, because most assets are still in the form of user self custody. Babylon's cryptographic algorithm can only be regarded as a "security manager", sharing some asset management rights, and relying on the cooperation of the Genesis chain to realize its value. However, the step of locking assets cannot fully utilize the "security as a service" capability of the Babylon protocol.
So, to truly unlock Babylon's Pow to Pos and help BTC Holders achieve their great commercial vision of native revenue, strictly speaking, it all depends on the performance of the Genesis chain after it goes live. Such as @ SolvProtocol@ If liquidity pledge service providers in the Babylon ecosystem such as LombarddFinance, @ Pumpbtcxyz, and @ Bedrock_SeFi adopt a 1:1 mapping of BTC mainnet for their liquidity supply, they naturally rely on the operation of the Genesis chain to provide them with unified secure accounting management and greater business model expansion.
above.
I don't know if I have explained it clearly, but I hope it can provide some inspiration and help for everyone to have a correct understanding of Babylon's technological niche value.
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