Babylon Labs has announced the official release of Babylon Genesis, the first Layer-1 blockchain secured by Bitcoin.
The team behind Babylon has just revealed the launch of Babylon Genesis Layer-1. This follows the initial Phase 1 rollout in August 2024, which introduced the staking of Bitcoin (BTC) through self-custodial contracts. Since that initial launch, the protocol has garnered a significant amount of 49,678.65 BTC ($4.06B) staked within these contracts. According to reports, Babylon currently holds the second position in Total Value Locked among restaking protocols, trailing only EigenLayer.
With today’s launch, the project moves into Phase 2. This phase encompasses the complete rollout of the Genesis blockchain, the activation of key infrastructure such as validator nodes and finality providers, and the introduction of the BABY token, which is now available for transfers and staking.
Eligible users will have BABY tokens airdropped directly into their wallets, with transfers and staking enabled from the outset. The final stage, Phase 3, will see the addition of more Bitcoin-Secured Networks, allowing other blockchains to tap into BTC staking security and liquidity via the Babylon Genesis Layer-1.
Babylon presents a distinct approach to Bitcoin staking by enabling users to lock their BTC into self-custodial contracts while retaining ownership. Unlike conventional staking, where assets are handed over to a smart contract or custodian, Babylon’s structure ensures that users maintain full control. If any participant, such as a validator or finality provider, behaves dishonestly, their staked BTC may be “slashed” (partially penalized), akin to mechanisms in Proof-of-Stake blockchains.
“Bitcoin enthusiasts genuinely value holding their own keys and having authority over their financial choices,” stated Spencer Yang, co-founder of Fractal Bitcoin, in a prior interview.
The blockchain’s security is upheld by validators staking the BABY token and finality providers staking BTC for added protection.
Looking ahead, one significant feature to watch for is a trust-minimized bridge between Bitcoin and Genesis, named BitVM2. This bridge will facilitate the movement of BTC into the Babylon ecosystem without the need for multisig arrangements, utilizing slashing and cryptographic methods to ensure trustless operations.