New Exploration of Bitcoin Shared Security: Babylon and pSTAKE Liquidity Staking Solution

With the rapid development of blockchain technology, the concept of shared security is becoming increasingly important. EigenLayer of Ethereum demonstrates how to share security with other blockchains by borrowing the security of its consensus layer. What kind of changes would this bring if this concept were applied to Bitcoin?

Expanding Shared Security in the Bitcoin Field

Bitcoin, known as "digital gold," has significant advantages in security and consensus mechanisms. Pan Zhixiong, the founder of ChainFeeds, stated that Babylon Chain adopts a middleware approach to leverage the security of Bitcoin to other PoS Proof of Stake chains, proposing a new method of shared security.

pSTAKE's Bitcoin Liquid Staking Testnet Goes Live

Pan Zhixiong stated that the recent launch of the testnet of the Bitcoin liquid staking solution based on Babylon, called pSTAKE, has gone live. This solution provides users with more profit options, achieves Bitcoin native chain staking, and eliminates the risk of cross-chain assets. He also outlined the key technologies involved:

1. EOT Technology (Extractable One-Time Signatures): This technology implements a punishment mechanism similar to PoS on the Bitcoin network. If a signer uses the same private key to sign different messages, their private key will be exposed, allowing the community to economically penalize non-compliant behavior.
2. TimeLock Technology: This technology allows users to set specific UTXOs that cannot be spent until a future time or block height, combined with EOT technology, ensuring the security of locked Bitcoin on the Babylon platform.
3. Bitcoin Timestamp Protocol: Any data submitted to Babylon can receive a Bitcoin timestamp, which not only helps determine legitimate forks after PoS chains experience "long-range attacks" but also shortens the staking unbonding time from weeks to a day on PoS chains.

Current Progress of Babylon and pSTAKE

Pan Zhixiong mentioned that although Babylon has not yet launched its mainnet, its performance in Testnet-4 Cap 3 has demonstrated its potential. The total locked value has reached 708 Signet BTC, attracting over 300,000 users.

As part of the Babylon ecosystem, pSTAKE recently launched the testnet of the Bitcoin liquid staking solution based on Babylon, the only BTC LSD token currently live in the market. Users can stake Bitcoin into the Babylon ecosystem through pSTAKE, participate in other DeFi ecosystems with the tokens earned, and earn additional profits. To date, over 20,000 users have participated in the pSTAKE testnet, with a total of over 19 BTC deposited.

Babylon and pSTAKE Gaining Attention

Pan Zhixiong mentioned that the development of Babylon and pSTAKE has also attracted attention from Binance Research. In their recent industry map report, projects such as Babylon, pSTAKE, BounceBit, and Lorenzo were specifically highlighted for their active performance in the Bitcoin liquid staking field.

According to current market data, the total market value of Bitcoin is approximately $1.249 trillion, more than three times that of Ethereum. This means that even with only 1% of Bitcoin participating in staking, it would provide over $100 billion in security for the market.

By leveraging its unique technology to introduce Bitcoin into other ecosystems in a trustless manner, Babylon has shown great potential for development. As a key participant in the Babylon ecosystem, pSTAKE provides users with diversified investment and profit opportunities, making participation in its testnet potentially lucrative.

Through these innovative technologies, Pan Zhixiong believes that Bitcoin can not only maintain its status as "digital gold" but also play a greater role in the broader blockchain ecosystem. The further development of Babylon and pSTAKE is worth our continued attention.