Binance Ventures backs Bitcoin equity platform Babylon.

Ritu13

Binance Labs is investing in Babylon, a Bitcoin (BTC) staking protocol.

According to Binance's latest announcement, Binance's venture capital arm and incubator, Binance Labs, are investing in a new BTC staking protocol called Babylon.

"Binance Labs... invested in Babylon, a Bitcoin staking protocol, pioneering the concept of native Bitcoin staking, allowing users to stake Bitcoin on PoS (Proof of Stake) blockchains and earn rewards without any third-party custody, bridging solutions, or wrapping services. It provides burnable economic security for PoS chains while ensuring effective stake bonding to enhance Bitcoin holders' liquidity."

Bitcoin operates on a Proof of Work (PoW) blockchain, while many other smart contract platforms like Ethereum (ETH) utilize Proof of Stake blockchains. Both terms refer to the consensus mechanism of the blockchain.

"Babylon's Bitcoin staking protocol offers a way for PoS chains to derive staking capital from the world's largest crypto asset rather than its native tokens, thus alleviating inflation pressure on PoS chains and introducing new utility for their tokens."

According to the announcement, Babylon also brings more utility to the BTC chain, which has historically been used as a store of value. Babylon is built on Cosmos (ATOM) and aims to act as an intermediary between PoW and PoS blockchains.

Changpeng Zhao, co-founder of Binance and head of Binance Labs, stated,

"Bitcoin staking introduces a critically important new use case for the industry, marking a significant step towards the convergence of Bitcoin with Proof of Stake economies. Binance Labs' investment in Babylon represents our commitment to supporting innovative projects that drive the narrative around Bitcoin and advance its use cases."

Iravan774

Only oneself knows how much the fine is.

Yamini003

This investment is also quite anticipated.

Iti9

Investing also carries a certain level of risk.