How to Securely Stake Bitcoin Through Babylon?
2024-10-08
The Babylon Bitcoin staking mainnet launched on August 22nd, and Bitget Wallet proudly became one of the first to support it. If you're interested in the BTC ecosystem or looking for a secure and stable way to earn yield on your Bitcoin, this guide will walk you through how to stake BTC on Babylon using Bitget Wallet.
What is Babylon?
Babylon Bitcoin Staking Protocol allows Proof-of-Stake (PoS) systems such as PoS chains, L2s, Data Availability layers, oracles, etc. to gain staking capital from Bitcoin, the largest, decentralized crypto asset in the world. While PoS chains are energy-efficient, they sometimes face security vulnerabilities not found in Bitcoin’s Proof-of-Work (PoW) system.
In a typical PoS setup, the network’s security relies heavily on the participation of stakers. If some become inactive, the network could be at risk. Babylon steps in by leveraging Bitcoin's unparalleled security, the world's most robust decentralized network. It acts like a tamper-proof surveillance system, recording every activity and preventing any manipulation of the transaction history, ensuring the blockchain's data remains accurate and credible.
Babylon's Unique Staking Approach
Staking cryptocurrency often involves locking assets on different blockchains, which can be risky. For instance, when you lock Bitcoin or send it to a cross-chain bridge, you receive a 1:1 mapped asset on another chain. However, if the project party managing the bridge is hacked or disappears, your mapped assets can become worthless, leading to the loss of your precious Bitcoin.
Babylon takes a different approach. It allows Bitcoin holders to stake without moving their BTC off the original chain, reducing the risk of cross-chain transfers. It’s like keeping your valuable artwork in a secure vault while using its value as collateral for transactions, ensuring your assets remain safe.
Key Features of Babylon
The Babylon Bitcoin staking ensures
secure custody by keeping your Bitcoin safely in your wallet or within a Babylon-supported custody solution, allowing you to maintain full control over your assets and significantly reduce the risk of hacks or mismanagement. The protocol’s
advanced workflow leverages cutting-edge encryption to identify and track staked Bitcoin, much like how a bank monitors funds in your account. This means you can earn rewards without ever having to move your assets. Additionally, Babylon’s
decentralized staking process is distributed across the network, which enhances both security and transparency. By simply connecting your wallet, you can stake your Bitcoin and start earning rewards without the need for cross-chain transfers.
How to Stake Bitcoin with Babylon using Bitget Wallet
To make your experience with Babylon staking even smoother, Bitget Wallet has integrated a dedicated Babylon DApp section. Here’s how to get started:
1.
Access the Babylon page in
Bitget Wallet: On the "Discover" page and go to the "Babylon Ecosystem" section and click on "Babylon".
2.
Connect Your Wallet: Click on "Connect Wallet" in the upper right corner of the Babylon page.
3.
Choose Your Staking Provider: Select a provider, enter the amount of BTC you want to stake, and click "Preview" to review the details. If everything looks good, click "Stake" to proceed.
4.
Confirm the transaction: In the pop-up window, click "Signature" to finalize the staking process. You can view your staking status or cancel the stake anytime under "Staking history".
You can check out the "FAQ" section if you have any questions about staking.
After staking, you can unbind and withdraw your BTC anytime. The unbinding process takes just one day, and the maximum staking period is currently set at two days. If you don’t unbind before this period ends, you can still withdraw your assets at any time afterward.
If you run into any issues while staking with Babylon using Bitget Wallet, feel free to reach out to the official Bitget Wallet community. We’re here to help.
*Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly speculative and involve significant risk, including the potential for total loss. They are not insured or guaranteed by any government agency. We strongly recommend conducting thorough research and understanding the risks before making any investment decisions.
About Bitget Wallet
Bitget Wallet is Asia's largest and a leading global Web3 wallet with over 20 million users worldwide. It offers a comprehensive range of features, including asset management, intelligent market data, swap trading, launchpad, inscribing, NFT, DApp, and token earning center. Currently, it supports more than 100 major blockchains, hundreds of EVM-compatible chains, and over 250,000 cryptocurrencies. Bitget Wallet enhances liquidity by aggregating it across hundreds of top DEXs and cross-chain bridges, facilitating seamless trading on nearly 50 blockchains.
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