Babylon Chain: PoS Staking on the Bitcoin Blockchain
Close to the end of 2023, a new blockchain project known as Babylon Chain received its first initial investment. But what is Babylon Chain? And how does it work?
Read on to learn all about Babylon Chain, who created it, and what future users can expect when it finally launches.
What is Babylon Chain?
Babylon Chain is a newer cryptocurrency project that was just announced in October 2023. As a result, there isn’t a whole lot of information about it available just yet. It is currently more of an idea than a product, though it has begun the development process.
According to CoinDesk and the Babylon Chain website, Babylon Chain is a Bitcoin Staking Protocol run on a proof of stake consensus mechanism. Babylon Chain will allow investors to stake Bitcoin, even though Bitcoin is on a proof of work consensus mechanism.
How Does Babylon Chain Work?
As of January 15th, 2024, Babylon Chain does not yet have a full whitepaper. It is currently under development based on its litepaper, which is a version of a whitepaper, but without the full technical specs of the project. The reason for having a litepaper instead of a whitepaper is usually because the creators of the project aren’t yet aware of exactly how it will work.
Currently, Babylon Chain isn’t exactly sure how they are going to create a staking protocol for Bitcoin, and their lite paper only lists some of the obstacles they are currently facing, but they will eventually develop some sort of workaround for them.
Babylon Chain will be developed using finality gadgets, Bitcoin emulation, and use Bitcoin timestamps to function. The final project will be able to be used on all proof-of-stake blockchains if the developers are successful. They also claim that the product they are making will not require Bitcoin to fork to be used.
But basically, as of the publishing of this article, the developers have no idea how Babylon Chain will actually function once the project is complete.
Who Created Babylon Chain?
Babylon Chain was created by David Tse and Fisher Yu, and they have enlisted the help of several developers and engineers to help bring their product to light.
David Tse is a professor at Stanford University, and also an engineer himself. Fisher Yu doesn’t have quite the same experience, though he has worked on several software development projects as an engineer over the years and has carried out post-doctorate studies and research in software development.
Is Babylon Chain Legit?
Baylon Chain is a legitimate company which is registered in the United States in California. The Babylon Chain website lists all of those involved in the project, as well as connects you to their LinkedIn pages if you are curious about their backgrounds.
Babylon Chain has also received several investments from legitimate companies, the most notable being Framework Ventures, Polygon Ventures, OKX Ventures, Bryer Capital, Finality Capital, and Symbolic Capital.
Related: How to Tell if a Crypto Website is Legit
Should You Use Babylon Chain?
Although Babylon Chain is a legitimate company registered in the United States, it is not currently advised to invest personal funds into their project.
This advisement is for several reasons, the most important being that Babylon Chain doesn’t have a whitepaper, and it is unclear if what they are trying to complete is even possible. There is a possibility that after millions of dollars are spent on development, there isn’t a functioning project to show for it.
While there is some demand for staking on the Bitcoin blockchain, there are currently other staking platforms available, and since the viability of Babylon Chain is in question, even if they do end up with a product at the end, it is unclear if it will be widely adopted, or used by the community.
This brings us to our next point, which is that there is no timeline for when your potential investment will come to fruition. You could invest today, hoping to retire in 5 years when the product hits the market, only to find out it won’t be hitting the market for another decade.
The final issue we would like to point out is that 2023 was a rough year for cryptocurrency, and with a potential recession coming in 2024, we believe that even if Babylon Chain is successful in its endeavors, it could be a while before they are able to make money, making it difficult to garnish a substantial return on your initial investment.
Although any investment in cryptocurrency or blockchain projects is inherently risky, the Babylon Chain investment seems riskier than most, mostly because there is no whitepaper, timeline, or idea of how much return your investment could eventually reap. For these reasons, we recommend holding back on a Babylon Chain investment until more details about the project are released.
Related: How to Earn Income on Crypto Holdings
Current Bitcoin Staking Protocols
It is currently impossible to stake Bitcoin on the Bitcoin blockchain because, as mentioned above, Bitcoin is a proof-of-work cryptocurrency. However, there are several financial services that will allow you to stake your Bitcoin on their platform, usually in staking pools to provide platform liquidity in exchange for monetary return.
· Coinbase
· Binance
· Crypto.com
· KuCoin
· Kraken
· Gemini
These are only some of the platforms available. If you decide to look into another platform for staking Bitcoin in a liquidity pool, just be sure to do your research on the platform before sending them your hard-earned money.
Overall, Babylon Chain is a new project in the blockchain industry that could prove to be revolutionary if they are successful. Currently, although the development of Babylon Chain is in process, they don’t have a whole lot to show for the project just yet.
As a result, we have our doubts as to whether or not the project will be successful, and we don’t recommend investing in it just yet.
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