Bitcoin can secure proof-of-stake blockchain protocols.

The proof-of-work consensus mechanism of the Bitcoin network could become a useful tool for securing various proof-of-stake (PoS) smart contract blockchain protocols, thanks to the efforts of a professor at Stanford University.

David Tse and his research team are driving the use of the preeminent cryptocurrency to provide added security to PoS networks. Babylon blockchain, which Tse co-founded, aims to use Bitcoin ( BTC ) to bolster network security and incentivize BTC holders to participate in what is essentially a new approach allowing the staking of Bitcoin on proof-of-stake chains.

In an interview with Cointelegraph, Tse explained how Babylon uses the Bitcoin scripting language to connect a PoS-based slashing mechanism to the Bitcoin network. This allows for the creation of smart contracts that can set specific spending conditions:

“Although the Bitcoin scripting language is limited in its ability to express complex spending conditions, we have used advanced cryptography to translate the slashing conditions of a PoS chain into a spendable transaction on the Bitcoin blockchain.”

Tse said that Babylon’s BTC staking protocol enables BTC to secure PoS chains without altering or forking the Bitcoin blockchain. This also allows BTC holders to earn rewards for contributing to the security of PoS networks by staking their BTC.

“Our method essentially transforms the slashing condition of a proof-of-stake chain into a spendable Bitcoin transaction. This way, the staked BTC does not need to be bridged to the PoS chain at all.”

The Stanford professor added that the simplicity of the approach also maximizes the security of blockchains by avoiding potential vulnerabilities associated with cross-chain bridges . As Cointelegraph extensively reported, cross-chain hacks and exploits have been rife, leading to over $2 billion in crypto being stolen in the past year.

Bitcoin remains unrivaled as the largest cryptocurrency by market capitalization and continues to operate on the original specifications set out by its pseudonymous creator Satoshi Nakamoto.

Nevertheless, the ecosystem has seen renewed interest and growth with the inception of Bitcoin Ordinals , which allow users to inscribe nonfungible tokens onto individual satoshis, the smallest denomination of a unit of BTC.

Similarly, Tse believes that protocols like Babylon expand the utility of Bitcoin beyond being a simple store of value or medium of exchange by sharing Bitcoin’s robust security with other chains and applications:

“We aim to scale Bitcoin’s security in a way similar to Ethereum’s scaling efforts, effectively sharing Bitcoin’s robust security with the rest of the decentralized world.”

The broader cryptocurrency ecosystem continues to develop novel approaches to blockchain consensus. Proof-of-stake chains have benefitted and are quickly adopting new approaches like zero-knowledge proofs (ZK-proofs). StarkWare co-founder Eli Ben-Sasson, who pioneered the technology, also believes that ZK-proofs could greatly benefit the proof-of-work-based Bitcoin blockchain.

Magazine: Here’s how Ethereum’s ZK-rollups can become interoperable

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


Zeal Wallet Unveiled by 11 Ex-Revolut, Spotify, and Coinbase Leaders, Plus Ondo Finance's Tokenized US Treasury Product on Injective Your Cryptocurrency Update of the Day!

Stay on top of the latest crypto and blockchain news with our daily, quick-read digest. Discover the lesser-known sto...


Bitcoin Price Confirms Double Top, Potential Drop?

Analysts and traders express concern as the Bitcoin price closed below the $26,000 mark in yesterday's weekly session...


Bitcoin price rally stalls temporarily; here's why.

There are several factors contributing to this temporary pause in the price rally. One major factor is the increased ...


Titillating ORDI: Rising High with Bitcoin’s Rocket Ride! 🚀

Fashionista, in the latest market news, ORDI (ORDI) followed Bitcoin's (BTC) upward trend on Monday as it reached a r...


JPMorgan Ethereum's performance next year may surpass Bitcoin

JPMorgan Chase expects Ethereum to outperform Bitcoin and other cryptocurrencies in 2024, despite the bank maintainin...


BTC whales accumulate as price recovers.

The data recorded on the blockchain indicates that large holders of Bitcoin, commonly referred to as whales, have bee...