Lorenzo Protocol Integrates BabylonChain to Build Bitcoin Application Layer
The alliance will be key to Lorenzo’s BTC shared security and bitcoin liquid staking efforts, helping our team usher in a new era of scalability, security, and innovation for bitcoin
We are thrilled to announce our integration of BabylonChain as we continue our pursuit of redefining the bitcoin DeFi landscape.
This alliance, built on a shared vision to unlock bitcoin’s full potential, is set to transform the way we interact with the bitcoin ecosystem, heralding a new era of scalability, security, and innovation for our users. It will be key to our BTC shared security and bitcoin liquid staking efforts.
A Synergy of Innovation
By leveraging Babylon’s bitcoin staking and timestamping protocol, we are now setting the stage for a scalable and performant bitcoin application layer that can serve as a cornerstone for the next generation of digital assets and applications.
The synergy between our modular L2 and Babylon’s bitcoin security protocols ensures that all assets from bitcoin are compatible with the L2, and that bitcoin can be used not only for storing critical asset data (while supporting data is stored on a data availability module for faster and cheaper storage) but also for providing unparalleled security to users.
The Lorenzo architecture enables the following:
- Enhancing bitcoin’s scalability and storage capabilities through BTC-secured modules
- Enable execution of smart contracts, so that users can build dApps utilizing bitcoin assets.
- L2-as-a-Service, allowing users to customize their own bitcoin L2 by combining different execution, settlement, and data availability modules, which can be secured by bitcoin staking and timestamping.
- Asset compatibility, decentralized wrapping of bitcoin-native assets to the L2, and the settlement of smart contracts on bitcoin.
Thanks to Babylon’s technology, all these components draw their security from the BTC shared protocols currently being built. The result is a native, trustless, and self-custodial bitcoin staking protocol on the bitcoin blockchain (requiring no bridges).
A Call to Bitcoin Miners & Builders
We encourage all bitcoin miners and builders to follow our X so they can best prepare to engage in the future of bitcoin DeFi. Lorenzo Protocol offers a unique environment ready to elevate each group.
Bitcoin Miners
The upcoming halving will increase the financial risks associated with mining bitcoin, as block rewards for securing the network will be cut in half.
By validating our network — the most decentralized and secure bitcoin L2 in the world — miners will be able to dual-mine BTC and our native token, LRZ. By engaging in this approach, miners can more confidently continue contributing to the overall security and robustness of the bitcoin network.
Bitcoin Builders
Lorenzo Protocol is not just a platform; it’s a foundation for creativity, where your ideas can take shape and contribute to the evolution of bitcoin DeFi.
In the spirit of innovation and collaboration, we extend a heartfelt invitation to developers and visionaries in the cryptocurrency space: join us in the quest to enhance bitcoin’s ecosystem through decentralized solutions.
By building with Lorenzo, you’ll have the opportunity to be at the forefront of integrating DeFi capabilities into bitcoin, creating accessible, secure, and innovative products. This is your chance to be part of a movement creating transformative solutions that advance the bitcoin ecosystem.
Looking Ahead
As we embark on this journey together, we are not just envisioning a new future for bitcoin and blockchain technology; we are actively building it. The integration marks the beginning of a transformative phase for bitcoin where scalability, security, and innovation come together to unlock unprecedented possibilities.
Stay tuned for more updates as we continue to shape the future of bitcoin together.
