- Ankr and Babylon will explore BTC staking solutions shortly as Babylon enters mainnet phase.
- The early partnership may allow BTC holders to earn yields and open doors for BTC security for PoS chains.
Ankr and Babylon have partnered so that Ankr may offer liquid staking tokens (LSTs) for Bitcoin staked through Babylon. Next, the PoS chains protected by the BTC staking mechanism will receive the LSTs.
Ankr will provide updates to the community on Babylon’s protocol mechanics and live network launch, detailing every stage of the process.
Babylon is currently in testnet stage and awaiting mainnet release.
A significant progress for the scalability of new Web3 blockchain networks is the ability to use the value of Bitcoin to secure Proof-of-Stake networks. As more and more blockchains are launched to help with the exponential scaling of Web3, utilising crucial components like the Data Availability layers of Babylon and Eigen Layer, it will become a fundamental part of scaling via modularity.
Acquiring sufficient staked capital to secure a new blockchain ecosystem is a challenging task. Any new project can avoid bootstrapping its own cryptoeconomic security (staked tokens) by using protocols such as Eigen Layer, which share access to the Ethereum staked capital base and decentralized validator set.
However, Babylon might emerge as a game changer since it now gives developers access to a 21 million Bitcoin store that is much larger than Ethereum’s, which can be used to secure every chain that uses Babylon’s protocol.
Earlier Ankr had revealed that Bitcoin blockchain has become a crucial component of its RPC service. This move would allow users can make request calls, access Bitcoin Public and Premium RPCs, and obtain information returns that are exactly the same as what they would get from operating a Bitcoin full node.
Let’s dive into everything you need to know about #bitcoin staking with Ankr and @babylon_chain 🧵 pic.twitter.com/GI1nFUhPgv
— Ankr (@ankr) March 7, 2024
Ankr began its journey as a Web3 platform and blockchain-based DeFi infrastructure that allowed for cross-chain staking in 2017.
The primary goals of Ankr are to improve blockchain infrastructure efficiency and facilitate simple access to Web 3. It is driven by ANKR, an Ethereum-based token that may be used for payments, governance, staking, and the development of decentralized applications. More than 40 blockchain protocols are supported by Ankr for development and staking.
Babylon protocol has attracted a huge amount of interest from many liquid staking providers. It could open the pathway to staking yield from currently idle sitting Bitcoins, a hugely lucrative opportunity for BTC holders.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
