Binance's Latest Investment: What is Babylon? – BSC NEWS
Babylon's pioneering approach allows direct staking on Proof of Stake (PoS) blockchains, eliminating intermediaries and enhancing economic security.
Binance Labs, the venture capital and incubation arm of Binance, has announced a strategic investment in Babylon, a Bitcoin staking protocol.
We’ve invested in @babylon_chain!
Babylon is a blockchain project that designs security sharing protocols with a mission of scaling Bitcoin to secure the decentralized economy.
Read more👇https://t.co/9f5c2vt38S
But what exactly is Babylon, and how does it seek to transform the landscape of Bitcoin staking? Let's get into the details.
Babylon introduces a novel approach to staking Bitcoin directly on Proof of Stake (PoS) blockchains, eliminating the need for intermediaries like third-party custodians, bridge technologies, or wrapping services. This method enables users to earn yields while providing PoS chains with enhanced economic security.
Additionally, it offers Bitcoin holders a seamless process for unbonding stakes, thereby improving liquidity within the ecosystem.
The primary objective of Babylon is to forge a "Bitcoin-secured decentralized world" by transforming all 21 million BTC into a decentralized staking asset. Leveraging the Cosmos software development kit (SDK), Babylon was developed by a team of researchers from Stanford University, aiming to revolutionize the realm of blockchain security and utility.
At the core of Babylon's functionality lies a unique cryptographic scheme that enables the slashing of Bitcoin assets in the event of malicious activities by validators. Unlike traditional staking mechanisms, Babylon employs a sophisticated approach to slashing, ensuring the integrity and security of the network.
The protocol utilizes a specific spending condition within the Bitcoin scripting language, enabled by extractable one-time signatures. This mechanism ensures that any slashable offenses can be traced back to the revealing of a validator's private key, mitigating the risk of fraudulent behavior.
In December 2023, Babylon successfully raised $18 million in a Series A funding round, attracting investments from prominent firms such as Polychain Capital and Hack VC. Notable backers also include Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, and Symbolic Capital.
Binance Labs' recent undisclosed investment in Babylon underscores its commitment to fostering innovation within the blockchain ecosystem. Co-founder David Tse revealed that the investment aligns with Babylon's previous funding rounds, combining equity and token warrant structures to support its ambitious goals.
A recap of notable news from the week.
As the DeFi and crypto space continues to evolve at a rapid pace, it's essential to stay informed about the latest developments and trends. Our weekly recap provides you with a concise yet comprehensive overview of the most significant news and trends in the DeFi and crypto space, helping you stay informed and up-to-date with the latest happenings.
Binance Labs has invested in Renzo, an Ethereum liquid restaking protocol leveraging EigenLayer tech. Concurrently, Andreessen Horowitz (a16z) has backed EigenLayer with a substantial $100 million. EigenLayer, leading in Ethereum restaking, previously raised $50 million in a round led by Blockchain Capital.
Read the full story here.
Optimism, a Layer 2 network, launched its fourth airdrop, allocating 10,343,757.81 OP tokens, valued at around $38 million, to appreciate and incentivize web3 artists. This airdrop specifically targets NFT creators who have significantly contributed to the cultural landscape of the Superchain.
Find more information here.
The Uniswap Foundation has unveiled plans to revamp fee structures to better reward holders of its native UNI tokens. The proposed changes aim to reinvigorate Uniswap's governance framework by enhancing protocol fee collection and distributing these fees proportionately to UNI token holders who have staked and delegated their votes. Following this announcement, Uniswap's native token (UNI) surged over 60% from $7.24 to $12.6.
Read the full details.
On February 23, the Avalanche blockchain encountered a disruption in its proof-of-stake (PoS) network, temporarily halting block production and impacting network functionality. Kevin Sekniqi, co-founder of Ava Labs, confirmed the incident and stated that it was caused by a code-related bug rather than performance issues. The team is investigating the disruption, with suspicions initially focusing on a recently initiated "inscription wave" preceding the block production problems.
Learn more in the article.
Starknet, Ethereum's layer-2 blockchain, experienced a rollercoaster week with a surge and subsequent plummet in active users. Within seven days, user numbers dropped by a staggering 65%, from over 220,500 to just over 84,260. The surge was initially fueled by excitement over the Starknet Provisions Program airdrop, but anticipation turned to disappointment as details for the airdrop were shared.
Read the full story here.
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Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
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Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.