Interpretation of Babylon: Unlocking Idle Bitcoin Asset Revenues

Source: Shenchao TechFlow

As Bitcoin breaks through 5.6 million U.S. dollars, the market’s attention to Bitcoin and its ecology continues to increase.

Previous Merlin and other Bitcoin L2 staking activities have successfully attracted a large number of BTC assets to participate in staking, and competition has become increasingly fierce. For airdrop hunters, everyone is in urgent need of new goals to participate in.

The next opportunity that may have potential revenue is Babylon.

In recent days, discussions about Babylon on Twitter have continued to increase.

Babylon attempts to become the largest Staking infrastructure for Bitcoin, opening up new areas of financial opportunities for the Bitcoin community, turning Bitcoin into a more widely used interest-bearing asset, and providing Bitcoin holders with income.

As early as December 7, 2023, Babylon completed an $18 million Series A financing, led by Polychain Capital and Hack VC, with Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital and Symbolic Capital participated in the investment.

Recently, Babylon also announced its testnet platform It will also be launched on the 28th, and early players who participate in the test network interaction will also receive a "Pioneer PASS" NFT.

Considering the popularity of the Bitcoin ecosystem and its luxurious investment lineup, Blabylon may become a big deal that cannot be ignored this year.

This article will briefly introduce Babylon's business, and will introduce in detail the steps required to participate in testnet interaction, such as wallet creation, water collection, and network settings addition.

Introduction

For readers who are not familiar with Babylon, it can be briefly understood as a project that allows "BTC to earn interest" through staking.

Bitcoin holders can earn income from idle Bitcoin in a secure way: no third-party trust is required, and no need to bridge Bitcoin to any other chain. Bitcoin holders simply lock their Bitcoins in a self-custodial manner and gain the right to validate the PoS chain and earn revenue in return.

Bitcoin stakers can also enjoy maximum liquidity and yield, powered by the protocol’s fast unbundling and scalable re-staking capabilities.

From a technical perspective, Babylon is a Bitcoin Secure Sharing Protocol. Currently, it includes two protocols:

• Bitcoin Timestamp: This protocol converts any data such as PoS blockchain) concise and verifiable timestamps sent to Bitcoin;

• BitcoinStaking:The protocol allows Bitcoin assets to provide economic security for any decentralized system through trustless (and self-custodial) staking.

In terms of implementation, Babylon works by acting as an intermediary between chains that require additional security and Bitcoin, obtaining Block headers from chains that use its services , and write these Block headers into the Bitcoin blockchain, allowing blockchains in the Cosmos ecosystem to use Bitcoin network security. Validators running Babylon are compensated by using the native token of Babylon’s chain and will also be compensated in Babylon’s native token.

Testnet interaction preparatory work tutorial

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The current project official website shows that the test network will be launched on February 28.

However, considering that it involves the interaction between the cosmos architecture and the BTC system, there is still some preparation work to be done before the testnet interaction.

1. Before starting the process, we need to prepare two wallets, one Keplr wallet (keplr.app/download) is connected to Babylon Chain, an OKX wallet (https://okx.com/cn/web3 ) Connect to the Bitcoin Signet network.

2. Get BBN

• Download Keplr and After creating the wallet, go to the new network website (https://chains.keplr.app/), enter Babylon testnet in Search chain, and choose to add to Keplr.

• After adding the network, open the Keplr plug-in, click Settings in the upper left corner, and select Manage Chain Visibility.

• Enter Babylon and remember to click Save below after checking;

• Open the Keplr plug-in again and select Babylon Testnet in the copy address And copy the address;

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Enter Babylon official Discord Address comes to Lingshui Channel, enter "! faucet space Babylon Testnet address" to complete the water claim, which can be claimed every six hours.

1. Receive sBTC

• Open OKX Web3 wallet ( Both mobile and web pages are available), scroll to the bottom of the page and find currency management;

• Click Currency Management, enter sbtc in the search bar, and select Add ( Note: If you cannot find sbtc in the wallet plug-in or cannot find the btc network, you must use the mnemonic phrase to import the wallet. You cannot use theprivate key to import. Only in this way can it be searched);

• After the addition is completed, return to the main wallet page, click sBTC, then enter the select network page in the upper right corner, and select Native as the default address SegWit is enough;

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• After copying the address, enter the official Lingshui website Lingshui (beware of phishing websites). There are currently two websites where you can receive it:

https://signetfaucet.com

https://alt.signetfaucet.com

• If there are too many participants, you will need to try multiple times.

After completing the above steps, just wait for the test network interaction on the 28th.

Note that the above is just preparation work. Only after actual interaction can you get the Pioneer NFT Pass airdrop mentioned above.

At the same time, you can also cooperate to complete the Galxe mission released by the current project team, and you will also receive it after success. A community badge NFT.