Recently, Babylon launched airdrop inquiry 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 briefly explain:
Babylon's greatest value innovation lies in the fact that by constructing a complex UTXO script contract on the Bitcoin mainnet, BTC can be locked in a safe and custody-free manner. In other words, users' BTC can be locked on the Bitcoin mainnet in a self-custodial manner, while also having the rights to Staking mining income on other Pos chains?
The question is, if the assets are only locked on the Bitcoin mainnet, how can they be used on other PoS chains to become effective locked assets and provide security consensus for the PoS chain? The answer lies in the Babylon Genesis chain.
The Babylon Genesis Chain (Bitcoin Secured Network, BSN) is a Pos chain built on the Cosmos SDK. When Babylon locks BTC on the main network through cryptographic algorithms, it is equivalent to a remote, secure and guaranteed pledge system. However, in order for the system to realize remote scheduling and management of assets, it also requires a chain with "programmable capabilities" to build consensus. The Genesis chain is to help the Babylon protocol realize the conversion of main network BTC assets into other Pos chains with secure consensus capabilities. The unified verification layer and interoperable layer.
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 generate income (source of revenue). At the same time, it can also follow the example of Eigenlayer to package 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 logic can we understand that the real value of the Babylon protocol is not how many assets are locked on the main network, 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 steward" that only shares some asset management rights and needs the cooperation of the Genesis chain to realize its value. The step of locking assets alone cannot bring out the full capabilities of the Babylon protocol's "security as a service".
Therefore, to truly unlock Babylon’s Pow-to-Pos conversion and help BTC Holders 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 Solv Protocol, Lombard, PumpBTC, BedRock, etc., 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.
