The world’s largest crypto exchange platform by trading volume is adding support for a new Bitcoin (BTC) staking protocol.
In a new announcement, Binance says it will be adding the BTC staking project Babylon (BABY) to its massive suite of digital asset products.
Babylon, which launched Babylon Genesis today, rose in value after gaining support from Binance.
BABY went from a daily low of $0.084 to a peak of $0.099 just a few hours later. It has since retraced and is trading for $0.087 at time of writing, a 4.6% gain during the last 24 hours.
According to the project’s official litepaper, the protocol is designed to fix latency, security and programmability issues associated with BTC, something layer-2 projects have struggled with in the past.
“Bitcoin is the first and still the top blockchain in terms of market capitalization. However, beyond a store of value, its utility has been limited by its small blockspace, high latency, and limited programmability. In particular, previous efforts in scaling Bitcoin and broadening its use cases by building sidechains and other layer-2 projects are hampered by the inability to bridge a large quantity of Bitcoins to these chains.
The bridges are limited either by security or by capacity or by both. Our work brings a new and important use case for the Bitcoin asset: staking to provide security to the PoS (proof-of-stake) world. What we showed is that for at least this use case, bridging of the Bitcoin asset to other chains is not needed, yet full economic security can be provided to the PoS chains.”
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