Protocol suite Babylon launched the first phase of its self-custodial Bitcoin staking Mainnet on August 22, introducing a new utility for Bitcoin.

In an X post, Babylon announced the new protocol, which enables holders to stake their Bitcoin via smart contracts.

The platform has already amassed over 12,720 stakers and 20,610 staking delegations, according to Babylon’s website.

This development expands Bitcoin’s use cases beyond its traditional roles as a store of value or means of payment, allowing it to participate in securing proof of stake (PoS) networks and earn rewards.

Earn Passive Rewards Bitcoin: How Babylon’s Staking Works

Staking allows Bitcoin holders to lock their BTC using the Babylon protocol’s trustless and self-custodial staking script for a predetermined time.

The process is trustless and self-custodial, meaning it doesn’t rely on any intermediaries, and the BTC holders maintain control over their Bitcoin while it is locked.

Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and secure the network.

In PoS, validators are chosen to create new blocks and confirm transactions based on the number of coins they hold and are willing to “stake” as collateral. This voting power allows them to influence the consensus process of the PoS system.

BTC holders can earn rewards from the PoS protocol in return for providing voting power.

Finality providers perform the voting. A BTC staker can create a finality provider by itself and self-delegate or delegate its voting power to a third-party finality provider.

BTC stakers can either set up their finality provider, thereby directly utilizing their voting power, or delegate their voting power to an established third-party finality provider.

The latter allows stakers to rely on more experienced or specialized entities to handle the complexities of the PoS system while still earning rewards.

Staking Security: How Are Bad Actors Kept at Bay?

The Babylon protocol incorporates a “slashing” mechanism to prevent malicious activities and attacks.

If a finality provider attempts to compromise the PoS system by acting dishonestly or disrupting the network, the BTC delegated to them for voting power can be partially or entirely forfeited.

This slashing mechanism serves as a deterrent against malicious behavior from both BTC stakers and finality providers. The potential loss of staked Bitcoin provides a strong incentive to act honestly and maintain the integrity of the PoS system.

The introduction of Bitcoin staking adds to Bitcoin’s evolving use cases and could drive further innovation and trustless applications for Bitcoin.

The post Babylon Pioneers Bitcoin Staking Mainnet Unlocking New Utility appeared first on Cryptonews.

Former President Donald Trump announced the upcoming launch of the Trump Organization’s new crypto platform — dubbed “The DeFiant Ones” — on Aug. 22.

Trump made the announcement via a post on Truth Social and hinted that the DeFi platform aims to provide Americans with an alternative to the traditional financial system. He stated:

“For too long, the average American has been squeezed by the big banks and financial elites. It’s time we take a stand — together.”

This marks the first time the Republican presidential nominee has used his personal platform to promote the not-yet-activated “digital bank.” Following Trump’s post, his son, Donald Trump Jr., shared it with his 12 million followers on X, formerly known as Twitter.

The DeFiant 0nes

The post included a link to a Telegram channel named “The DeFiant 0nes,” which had approximately 30,000 followers as of press time. The channel is described as the official group for the Trump DeFi project, which aims to create what it calls “the future of finance.”

Eric Trump, one of Trump’s sons, recently told reporters that the project involves “digital real estate.” In an interview with the New York Post earlier this month, he explained:

“It’s equitable. It’s collateral anyone can get access to and do so instantly. I don’t know if people realize what a shake-up that is for the world of banking and finance. I hope we can help change that.”

The Trump brothers have promoted the platform by discussing the potential of DeFi and encouraging followers to stay tuned for further announcements.

The reference to “digital real estate” has led to speculation that the platform might involve tokenizing real-world assets or selling digitized versions of assets within the metaverse.

Trump’s pro-crypto shift

The announcement comes as Trump’s presidential campaign moves into its final stages. The former president is working to build momentum in the race against Vice President Kamala Harris.

Trump’s engagement with crypto represents a notable shift from his earlier views. During his presidency, he had expressed skepticism about Bitcoin, labeling it a scam. However, in recent months, Trump has adopted a more supportive stance toward the crypto industry.

He recently headlined the Bitcoin 2024 conference in July and said he would ensure the US “never sells” its Bitcoin if elected and vowed to make America a crypto “superpower.” Trump reiterated his views in subsequent interviews, cementing his pro-crypto stance.

The GOP has followed suit and included Bitcoin mining and self-custody rights as a key point of its new platform. Additionally, Senator Cynthia Lummis has introduced legislation called the Bitcoin Act, which aims to make Bitcoin a strategic reserve asset.

Trump’s evolving stance on crypto has drawn widespread from industry leaders, who believe his progressive policies will be a boon for both the crypto and tech industries. The former president reported that he had raised $25 million in donations from the crypto sector by the end of July.

The post Trump family unveils new DeFi platform that aims to disrupt ‘big banks’ appeared first on CryptoSlate.