How exactly does Babylon work?

Babylon operates through a suite of Bitcoin security-sharing protocols, each leveraging distinct security features inherent to Bitcoin. These features encompass Bitcoin's Proof-of-Work (PoW) power, the Bitcoin asset itself, and its reputation as one of the most censorship-resistant global blockchains.

The current primary focus is on the Bitcoin Staking protocol and the Babylon staking protocol is designed to leverage unused Bitcoins to improve the economic security of Proof-of-Stake (PoS) systems.

What makes it particularly noteworthy is its ability to allow Bitcoin holders to stake their bitcoins directly on the Bitcoin network in a trustless manner, eliminating the need for third-party custody, bridging, or wrapping services.

And the staked bitcoins can be effectively utilized as a staking asset within PoS systems. This functionality has various essential properties, including generating yields and being slashable, delegatable, and easily unstaked. Achieving this is made possible through advanced cryptographic technologies and by fully using Bitcoin's existing scripting language, all without requiring any modifications or forks to the Bitcoin network itself.

Learn more about Babylonchain via Babylonchain.io