Received investment from Binance Labs, but the amount is unknown. Can Babylon lead on-chain financial innovation for Bitcoin?
After completing a $18 million financing round with investment from Binance, will Babylon lead the Bitcoin ecosystem in the future?Author: DeMan
Recently, Binance Labs' decision to invest in Babylon, although the specific amount was not disclosed, has made quite a splash. On February 28, Babylon launched the Pioneer Pass minting event to celebrate the successful launch of its testnet.
In December last year, Babylon successfully completed a $18 million financing round, led by industry heavyweights Polychain Capital and Hack VC, followed closely by Framework Ventures, Polygon Ventures, and OKX Ventures. Below, we introduce the recently popular Babylon project.
What exactly is Babylon? What are its technical implementation paths? What are its core advantages?
Babylon, originating from Stanford's blockchain innovation, reshapes the economic security role of Bitcoin through remote staking and Ordinals technology. Babylon utilizes a chain built on the Cosmos SDK, which not only provides crucial Bitcoin timestamp services for PoS chains but also cleverly acts as a synchronization hub between the Bitcoin network and PoS chains. Below are Babylon's core technical solutions.
- Remote Staking:
Remote staking represents a core part of Babylon's technology, allowing Bitcoin holders to stake without bridging their Bitcoin to PoS chains. This method leverages innovations in cryptography and consensus protocols, as well as optimized use of Bitcoin's scripting language, to achieve a decentralized staking process, completely eliminating the need for bridging, wrapping, or custodial Bitcoin.
- PoS Staking:
Babylon's revolutionary staking mechanism allows Bitcoin to be locked and staked without being transferred to a PoS chain. This mechanism ensures the honesty of validators' behavior, as Bitcoin is locked as collateral during the validation process on the PoS chain, and any violations by validators will result in a reduction of the collateral. This not only enhances the security of the PoS chain but also allows Bitcoin holders to earn rewards while keeping their assets secure.
- Higher Technical Security:
Babylon is not just a staking platform; it is also a technical framework for Bitcoin security sharing. It mainly includes two protocols: Bitcoin timestamp and Bitcoin staking, aimed at providing economic security for decentralized systems. Babylon writes the PoS chain's block header information into the Bitcoin blockchain, leveraging the security of the Bitcoin network to provide additional protection for chains within the Cosmos ecosystem. Validators running Babylon not only earn rewards by using the native token of the Babylon chain but will also receive further rewards in Babylon's native tokens.
These technical practices and concepts of Babylon demonstrate its key role in advancing the cryptocurrency world. Through its remote staking method and unique staking mechanism, Babylon not only creates new possibilities for Bitcoin staking but also provides new perspectives on the security and application of cryptocurrencies.
Tutorial: How to obtain Babylon's commemorative NFT to fully seize the development opportunities of this project?
The "Pioneer Pass" introduced by the Babylon platform symbolizes a significant breakthrough in the Bitcoin staking field, offering participants the opportunity to become early explorers and a special status within the Babylon ecosystem. To participate and have a chance to obtain this commemorative NFT, participants need to complete the following steps:
Install Necessary Wallets: Including the Keplr wallet (to connect to the Babylon chain for staking rewards) and the OKX wallet (to connect to Bitcoin's Signet test network for staking operations).
Obtain Testnet Bitcoin: Participants need to visit the official Bitcoin testnet faucet to acquire Signet testnet Bitcoin, which is specifically designed for staking activities and has no actual economic value, ensuring the safety of the participation process.
Participate in Staking Activities: According to the specific staking guidelines released by Babylon on February 28, 2024, participants need to follow the instructions to complete the staking operation. Those who successfully complete the staking will be eligible to mint the Pioneer Pass.
Mint the Pioneer Pass: The Pioneer Pass, as a commemorative NFT, will be minted among participants who successfully complete the staking activity. Each pass will be engraved with a unique serial number, representing the participant's unique contribution to the Bitcoin staking revolution.
- Claim Period: The claim period is 7 days, starting from February 28, 2024, and ending on March 5. Due to the limited supply of Pioneer Passes, participants need to act quickly to ensure they can obtain this unique commemorative item.
By completing the above steps, participants can not only become part of the Bitcoin staking revolution but also enjoy special status and rights within the Babylon ecosystem, marking their pioneering position in exploring the future applications of Bitcoin.
Whether Babylon can lead financial innovation on the Bitcoin chain in the future is worth looking forward to, but the project's long-term trend still requires vigilance.
The story of Babylon Finance is a typical narrative of ups and downs in the cryptocurrency field, from rapid growth to sudden setbacks, ultimately finding a path to rebirth. In 2022, with the sharp decline in the price of the BABL token and its announcement to cease operations, Babylon seemed to have reached its end. During this period, the challenges faced by the project included investment losses, a sharp decline in TVL, and a loss of market confidence, casting a shadow over Babylon's future.
However, the recovery in 2023 brought new vitality to Babylon. Through technological innovation and adjustments in market strategy, Babylon successfully attracted new investments and launched its testnet, showcasing the potential and practicality of its technology. Although Babylon faced challenges in matching market demand and building its ecosystem during the recovery process, its efforts garnered widespread attention in the cryptocurrency field.
Babylon's journey reflects the difficulties that crypto projects must overcome in a rapidly changing market environment. Even after experiencing a decline, Babylon proved its resilience and potential by focusing on technological innovation and ecosystem building. However, Babylon's experience also reminds participants in the crypto space that a deeper and more nuanced understanding of the application of emerging technologies and market demands is necessary.
Ultimately, Babylon's story is not just about a journey of failure and recovery, but also about the importance of continuous innovation and adaptation in the crypto field. Its experiences provide valuable lessons for other projects, especially on how to maintain resilience and seek innovation when facing challenges. In the future, whether Babylon can continue to develop steadily in the cryptocurrency field will depend on how it continues to adapt to market changes and meet user needs.
