Bitcoin staking without bridging
Staking is a process in which cryptocurrency holders lock up a certain amount of their coins in a network wallet to support the operations and security of a blockchain or cryptocurrency network. In return for staking their coins, participants can earn rewards, which are often paid out in additional tokens of the same cryptocurrency. Staking serves several purposes. Staking helps secure a blockchain network by incentivizing participants to act honestly. When individuals or entities have a stake in the network's operation, they are less likely to engage in malicious activities that could harm the network.
Many blockchain networks use staking as part of their consensus mechanism. This process allows stakers to validate transactions and create new blocks, contributing to the network's overall functionality.
One of the major fears or huddle in staking Bitcoin is bridging. This involves transferring from holders possession to the chain which the staking takes place. The process of bridging often times may lead to loss of assets or delay.
In order to solve this, Babylon's Bitcoin staking is programmed in such a way that the holder will stake while in custody of the token. This means that the Bitcoin will not leave its chain, but will be staked and used to provide securities to POS without bridging.
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