Why Babylon Genesis truly opened a new chapter after the staking event

Author: Haotian

Recently, @babylonlabs_io launched airdrop query and registration, which gave great expectations to the Bitcoin ecosystem and community, and also announced the end of the vigorous staking mining campaign of Babylon Ecosystem Phase 1. However, if you really understand the technical principles of Babylon, you will know that staking BTC on the main chain is only Chapter 1, and the launch of the Babylon Genesis public chain is the real chapter of Babylon. Let's have a simple popular science:

Babylon's greatest value innovation is that by constructing a complex UTXO script contract on the Bitcoin main network, BTC can be locked in a safe and custody-free manner. In other words, users' BTC can be locked on the Bitcoin main network in a self-custodial manner, while having the rights and interests of Staking mining income on other Pos chains?

The question is, if it is only locked on the Bitcoin mainnet, how can it be used on other Pos chains to become an effective locked asset and provide security consensus for the Pos chain? The answer lies in the Babylon Genesis chain.

Babylon Genesis chain (Bitcoin Secured Network, BSN) is a Pos chain built on Cosmos SDK. When Babylon locks BTC on the mainnet through cryptographic algorithms, it is equivalent to a remote, secure and guaranteed pledge system. However, in order to realize the remote scheduling and management of assets, the system also needs a chain with "programmable capabilities" to build consensus, and the Genesis chain is to help the Babylon protocol realize the unified verification layer and interoperable layer of the mainnet BTC assets into other Pos chains with security consensus capabilities.

Through the orderly coordination of the Genesis chain (the brain center), Babylon can make the BTC (vault) locked on the Bitcoin mainnet generate actual use cases on other POS chains and then have income (source of income). At the same time, it can also follow the example of Eigenlayer to encapsulate this security consensus capability into a commodity and provide it to more Bitcoin second-layer POS chains to expand the source of income and the imagination space of business combinations.

Only by sorting out this layer of logic can we understand that the real value of the Babylon protocol is not how many assets are locked on the mainnet, because most of the assets are still in the form of user self-custody. Babylon's cryptographic algorithm can only be regarded as a "security butler" and only shares some asset management rights. It needs the cooperation of the Genesis chain to play its value. However, the step of locking assets cannot fully exert the "security as a service" capabilities of the Babylon protocol.

Therefore, to truly unlock Babylon's Pow to Pos conversion and help BTC Holder realize the great commercial vision of native income, strictly speaking, it all depends on the performance of the Genesis chain after it goes online. If the liquidity pledge service providers of the Babylon ecosystem, such as @SolvProtocol, @Lombard_Finance, @Pumpbtcxyz, and @Bedrock_DeFi, adopt a 1:1 mapping of the BTC mainnet for their liquidity supply, they will naturally rely on the operation of the Genesis chain to provide them with unified security accounting management and greater business model expansion.

That's all.

I don't know if I have explained it clearly, but I hope it will be of some inspiration and help to everyone to correctly understand the value of Babylon's technical niche.