The proof-of-work consensus mechanism of the Bitcoin network may be able to serve as a beneficial way of securing numerous proof-of-stake (PoS) smart contract blockchain protocols, due to the work of a professor from Stanford University.
David Tse and his research team are utilizing the leading cryptocurrency to provide additional protection to PoS networks. Tse’s exclusive Babylon blockchain seeks to employ Bitcoin (BTC) to reinforce network security and encourage BTC holders to engage in a novel technique that enables the staking of Bitcoin on proof-of-stake chains.
In an interview with Cointelegraph, Tse explained how Babylon utilizes the Bitcoin scripting language to link a PoS-based slashing system to the Bitcoin network. This enables the formation of intelligent contracts that can establish predetermined expenditure stipulations.
Tse stated that Babylon’s BTC staking protocol permits BTC to guard its network without changing or branching off the Bitcoin blockchain. This also permits BTC owners to gain rewards for contributing to the safety of PoS networks by staking their BTC.
The Stanford professor stated that the straightforwardness of the approach also ensures the safety of blockchains by sidestepping potential susceptibilities connected with cross-chain bridges. As Cointelegraph extensively reported, cross-chain hacks and exploits have been widespread, resulting in more than $2 billion in crypto being stolen in the past year.
Bitcoin is still the leader in terms of market capitalization among cryptocurrencies and adheres to the original guidelines created by its anonymous creator, Satoshi Nakamoto.
Despite this, the ecosystem has experienced a resurgence of interest and expansion with the introduction of Bitcoin Ordinals, which enable users to inscribe non-fungible tokens onto individual satoshis, the smallest denomination of a Bitcoin unit.
Tse also believes that protocols like Babylon can increase the usefulness of Bitcoin beyond just being a store of value or a means of exchange by providing the strong security of Bitcoin to other blockchains and applications.
The crypto-currency environment is continuing to create original solutions for blockchain consensus. Proof-of-stake networks have profited and are rapidly embracing novel techniques such as zero-knowledge proofs (ZK-proofs). Eli Ben-Sasson, co-founder of StarkWare and originator of the technology, is of the opinion that ZK-proofs could be highly advantageous for the Bitcoin blockchain which is based on proof-of-work.
Magazine: Here is how ZK-rollups of Ethereum can be made interoperable.
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