BOB, the “hybrid layer-2” community looking for to make Bitcoin the middle of the decentralized finance (DeFi) universe, has taken a step towards that aim by integrating with BTC restaking protocol Babylon.
An abbreviation of “Build on Bitcoin,” BOB’s purpose is to determine Bitcoin because the foundational community for DeFi by creating bridges between itself and different blockchains, utilizing Bitcoin because the anchor chain to finalize transactions.
Integrating with Babylon types a part of BOB’s roadmap by giving it “Bitcoin finality,” the purpose at which a transaction is everlasting and irreversible on the oldest blockchain. Property deposited from different chains on BOB could be confirmed and verified on Bitcoin by way of Babylon’s protocol.
Babylon, which is billed as a method of utilizing BTC to safe different protocols and decentralized purposes, is the foremost Bitcoin staking mission within the sector, with whole worth locked (TVL) of round $6 billion.
Staking refers to providing up crypto tokens to help the operating of a blockchain community in return for rewards, just like accruing curiosity in a checking account.
Such a course of is key to networks like Ethereum and Solana which run on a “proof-of-stake” mechanism, however is absent from Bitcoin, which use “proof of work.”
Nevertheless, on condition that the entire market cap of bitcoin is larger than each different crypto asset mixed, initiatives like Babylon are exploring methods of tapping into BTC’s deep reserves to profit the broader business.
This week, Babylon accomplished its third staking spherical by which it took its whole BTC staked to 57,290 ($5.93 billion), putting it within the prime 10 protocols by TVL, in response to knowledge tracked by DeFiLlama.
BOB’s subsequent step is to launch bridges connecting Bitcoin to different networks, utilizing BitVM, a computing paradigm designed to permit Ethereum-style good contracts on the world’s unique blockchain. BitVM is about for testnet launch in Q1 of 2025.
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