“Three Chain Combination and One” is undervalued Babylon

Author: dapangdun, Source: Author Twitter @Dapangduncrypto

one,What is babylon?

There are already a lot of introduction to babylon. Many big institutions and media have analyzed it. Therefore, I will not introduce the process and principles of the process here. I will try to describe what Babylon is in the simplest language.

BABYLON is a “self -limiting” solution to achieve BTC’s “depending on the pledge”.

Here are a few nouns to explain:

1. Self-limit: This means that Babylon comes from my restrictions in accordance with the “Zero-Trust” method. It has not adopted multiple signing and other methods as basic design.one.

2. To trust the pledge: here contains two concepts, one is to trust. Babylon is not a hosting plan. It cannot control user assets. User’s assets are locked in “Time-LOCK” and “Schnorrsignature” in one receiving one.In the address controlled by the user (of course, the operation is limited), there is no need to trust the third party; the other is pledge. To be precise, I prefer to use “lock”, because the real situation is the lock of BTC on the main network.But “pledge” is considered from the perspective of use, and it is easier to be understood.

3. Pure vouchers: This is a good understanding. The pledge incident is treated as a voucher through technical means, so that it can be used in different places.The point of explanation is that the BTC is not transferred to the target chain to pledge, but the credentials are confirmed as pledge.

4. The security layer of the POS chain: We know that the security of the POS chain mainly depends on the pledged funds. The more funds, the more secure.Many chains will use the token of the chain itself as pledge. This actually contains unsafe factors. If the price of the currency falls, the security of the chain will be reduced and the security will be reduced.Falling and producing “death spiral”.The most high -quality assets in Crypto such as BTC as the guarantee of the security layer will greatly enhance the security of the POS chain.

5. Income: Yes, Babylon is a project that acquires income. The income comes from “rewards” to provide security for POS chain.The point to be proposed is that Babylon is not a project used to activate BTC DEFI. The pledged BTC cannot directly participate in the DEFI.However, the income or points can be involved in DEFI through certain means. This is another matter, don’t be confused.

two,What is the significance of babylon?

1. Activate BTC

This is one of the most important significance I think Babylon. I said in the previous article that the problem that the current BTC ecology urgently needs to solve is “how to activate those BTCs that do not want to move.”

BTC currently has a market value of 1.3 trillion US dollars. Except for the coins in the CEX, most of them are in a “hibernation” state or in a “fake hibernation” state, lying in the account.Let you be southeast and northwest wind, I will never move!

The cause of this phenomenon is rooted in the usual concept of BTC holder “NOTYOUR Key, Not Your Coin”.Gray will never participate.Because they know that many projects are designed by the purpose of “stealing” their BTC.

The characteristics of the holder’s pursuit of “extreme security” are naturally different from the ETH holder. At the same time, because the BTC main network has a limited script ability, it cannot effectively use the form of smart contracts to “secure cross -chain”, soThe utilization rate of BTC has always been very low, and pledge projects based on multiple signing (including optimized solutions) have also been widely criticized.

The appearance of babylon can break this deadlock. Although BabyLon is not perfect, it still cannot bring huge liquidity to BTC-ECO, but it can slowly activate these BTC holders to use BTC’s idea and gradually cultivate this habit.EssenceAnyway, BTC is also placed in the account. If you can not lose control, and you can lie down and make money, why not?Intersection

This seemingly small step may be a big step in the development of BTC ecology!

2. Build a security layer module of the Crypto world

There are many public chain systems in the Crypto world, but everyone needs a “security layer” as the guarantee of chain security.EVM series, cosmos system, etc. are mostly based on the POS consensus mechanism, which requires sufficient high -quality funds as a foundation for ensuring safety.

From a modular perspective, Babylon can develop into a “general module component”: security layer module.Widely used in each POS chain, introducing BTCs for these chains as security guarantees.

BTC holders get more opportunities for income, and each chain gets more security, mutual benefit and win -win!

three,What is the prospect of babylon?

1. Three chain combination, bright prospects

Why do you say that is based on Babylon’s “technical and narrative background” is indeed very good:

1) COSMOS chain: Babylon is rooted in COSMOS, and the concept of “security sharing” also comes from cosmos, using COSMOS’s IBC chain communication.For the COSMOS chain, it will inevitably embrace the security brought by Babylon, and it will also bring new vitality to the COSMOS series.

2) BTC chain: BABYLON’s positioning goal is the BTC chain. As mentioned earlier, Babylon can gradually activate the use of BTC in the BTC network. When the holder gradually adapts to this method, it will become a habit.It will also be closer to Babylon.

3) ETH chain: BABYLON’s concept and Eigenlayer are “same veins”, but based on the BTC network, BabyLon realizes self -hosting, which also surpasses Eigenlayer in this piece.If you treat ETH as a BTC test chain, then Eigenlayer can even be considered as Babylon’s experimental products in some dimensions (the prerequisites of a family).Moreover, for the EVM chain, it is not impossible to introduce the “high -quality” assets that transcend ETH.

2. Valuation and basis

When it comes to the prospect, we have to mention the valuation of the project; calculate the valuation, we have to find a comparison. Here we simply make a few hypothetical comparison (non -rigorous):

1) TVL

At present, EIGENLAYER’s TVL is $ 14.7 billion, and the market value of ETH is about 350 billion US dollars, accounting for 4.2%; the current BTC market value is about 1.3 trillion US dollars.US dollars, (what is the concept of 50 billion U.S. dollars, according to the current situation, TVL will surpass the market value of USDC, second only to SOL), even if there is not so high proportion, we are only half, and we are more than 20 billion US dollars.Note that the locks here are the best assets.

2) FDV

Let’s compare with Eigenlayer first, Eigenlayer will be on 2024-2-22

Whees has received A16Z’s 100 million US dollars in financing, and I will measure this project according to $ 50-10 billion, then Babylon I think the FDV in the future will not be lower than EIGENLAYER;

If you use TVL to compare, ARB’s TVL is 15 billion and FDV is about 10 billion. According to the previous analysis, Babylon’s future TVL will not be lower than ARB, then the valuation will not be lower than ARB, that is, 10 billion yuan, that is, 10 billion yuanUS dollars; of course, you may say that ARB is a public chain. Babylon is actually a chain, and ARB is seeking development and benefits internally. Babylon is for development and benefits from the outside.Win.

Therefore, in my non -rigorous deduction, Babylon FDV will be at least $ 10 billion in the future.

Four,What are BABYLON participating opportunities?

In view of the actual progress of the current babylon, for ordinary people, I think there are three main methods for participation:

1. Participate in Bitcoin Staking Pioneer Pass secondary transaction

This is the reward of the testnet-3 test network. There are a total of 98,651. At present, it can only be purchased through the trading market:

A question will involve here: how to measure the value and odds of this NFT?

My personal opinion is that the purpose of buying NFT is to gamble the probability airdrop. Therefore, you can roughly estimate how the probability P is in the airdropping, what is the proportion of the airdropThe formula can be calculated.

Nft-value = FDV*P*R/98651

2. Participate in babylon testnet -4

Babylon Testnet-3 is closed immediately, and Testnet-4 is about to open, but I think Testnet-4 is likely to have no reward, and the main network may soon be online, so you need to pay more attention to relevant information.