Recently, Babylon launched airdrop queries and registrations, bringing great expectations to the Bitcoin ecosystem and community. It also announced the grand conclusion of the Babylon ecosystem Phase 1 staking mining campaign. However, if one truly understands the technical principles of Babylon, it becomes clear that staking BTC on the main chain is just Chapter 1; the launch of the Babylon Genesis public chain is the real chapter belonging to Babylon. Let’s briefly explain:

The greatest value innovation of Babylon lies in constructing complex UTXO script contracts on the Bitcoin mainnet, allowing BTC to be securely and non-custodially locked. This means that users' BTC can be locked on the Bitcoin mainnet in a self-custodial manner while also enjoying staking mining yield rights on other PoS chains.

The question arises: how can assets locked on the Bitcoin mainnet be utilized on other PoS chains, becoming effective locked assets that provide security consensus for the PoS chains? 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 mainnet through cryptographic algorithms, it is equivalent to a remote, secure staking system. However, to achieve remote scheduling and management of assets, a chain with "programmable capabilities" is needed to build consensus, and the Genesis chain serves as the unified verification layer and interactive operation layer that helps the Babylon protocol convert mainnet BTC assets into security consensus capabilities for other PoS chains.

Through the orderly coordination of the Genesis chain (the central brain), Babylon can enable the BTC locked on the Bitcoin mainnet (the insurance vault) to generate actual use cases and thus yield (sources of income) on other PoS chains. At the same time, it can also emulate Eigenlayer to package this security consensus capability as a product, offering it to more Bitcoin Layer 2 PoS chains to expand sources of income and the imaginative space for business combinations.

Understanding this layer of logic clarifies that the true value of the Babylon protocol does not lie in how much asset is locked on the mainnet, as most assets are still in a self-custodial form. Babylon's cryptographic algorithms can only be considered a "security steward," sharing some asset management rights, and it requires the cooperation of the Genesis chain to realize its value. Simply locking assets does not unleash the full capability of the Babylon protocol's "security as a service."

Therefore, to truly unlock Babylon's transition from PoW to PoS and help BTC holders achieve the great commercial vision of native yield, it strictly relies on the performance of the Genesis chain after its launch. Liquidity staking service providers in the Babylon ecosystem, such as Solv Protocol, Lombard, PumpBTC, and BedRock, if their liquidity supply adopts a 1:1 mapping of BTC on the mainnet, will naturally depend on the operation of the Genesis chain to provide them with unified secure accounting management and greater business model expansion.

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