Chakra is excited to announce our groundbreaking integration with Babylon DevNet, Euphrates, marking a significant milestone as one of the earliest consumer chains in the Babylon ecosystem. This partnership enhances our modular settlement layer with Bitcoin security, positioning Chakra at the forefront of the Bitcoin Renaissance.
Addressing the Growing Demand for Secure Bitcoin Settlements
As the BTCFi ecosystem matures, Chakra anticipates an exponential surge in demand for Bitcoin settlements. To meet this challenge and ensure that the Bitcoin settlement transactions can potentially exceed $1T in volume, Chakra leverages Babylon's staking protocol to enhance the security and efficiency of our modular settlement layer, setting a new standard in the industry.
Chakra's Innovative Approach to Babylon Integration
Chakra's modular design allows us to establish a seamless Inter-Blockchain Communication (IBC) channel with Babylon, showcasing our technical prowess and commitment to interoperability. Here's how our integration works:
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BTC Deposit and Delegation: When users deposit BTC into a self-custodial wallet on Babylon via Chakra, Babylon generates a "Delegation" record for this transaction.
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Cross-Chain Communication: Babylon notifies Chakra of the new Delegation Record through our established IBC channel, demonstrating the efficiency of our inter-chain operations. This leverages the security of Babylon to cross-enhance the security of Chakra message transfer, given that the security of Babylon is backed by Bitcoin's robust Proof of Work consensus mechanism.
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Proof of Asset Generation: Chakra Network generates a "Babylon Settlement Artifact" as proof of asset for the user. It enables the minting and distribution of BTC-backed assets on other chains.
After You Stake BTC on Babylon, Chakra Enables You to…
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Provide unlimited liquidity to the other execution layers
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Enable access to multiple layers of yield
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Participate in DeFi protocols across different networks without moving your BTC
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Use your staked BTC as collateral for lending and borrowing on supported platforms
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Engage in cross-chain trading and arbitrage opportunities
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And more.
As a result, protocols and asset holders can access all other execution layers with no friction. We generate one artifact per user per asset, such that all of your liquidities and gains can be clearly categorized and verified through Chakra’s own PoS consensus.
Through Chakra, you can always get your BTC back securely
When you initiate the unstaking process, a Chakra Settlement Handler burns the corresponding token on the target execution chain. Chakra Network then sends an "Undelegate" transaction via the IBC channel to the Babylon Network.
Efficient BTC Release: After the Babylon Unbonding Period, the Chakra Babylon Staking Custody Wallet unlocks and transfers the BTC to the user and burns the corresponding BTC-backed asset.
All mechanisms are open-sourced and undergoing community cross-validation with Code4rena. Please visit Chakra | Code4rena for our current ongoing contest and earn up to $60,000 for bug hunting!
How Chakra Benefits Babylon
This integration not only enhances Chakra's capabilities but also significantly contributes to the Babylon ecosystem:
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Expanding Babylon's Reach: As one of the earliest consumer chains in the Babylon network, Chakra helps extend Babylon's ecosystem and showcases its potential for diverse applications.
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Efficient and secure omni-chain liquidity access: We enable all users on Babylon to use their BTC stake as a proof to access the liquidity on other execution layers.
Looking Ahead
Our close relationship with Babylon underscores a shared vision for the future of Bitcoin. Chakra is committed to continuing our work with Babylon, driving innovation and providing secure, scalable, and efficient settlement services for the entire Bitcoin ecosystem.
This integration represents just the beginning of our journey. As we move forward, Chakra will continue to push the boundaries of what's possible in the BTCFi space with an eye toward enhancing security, scalability, and user experience.
Stay tuned for more exciting developments as we work together to realize the full potential of the Bitcoin Renaissance.
About Babylon
Babylon was founded in 2022 by Stanford Professor David Tse and Dr. Fisher Yu as a blockchain project that designs security-sharing protocols for the decentralized economy. Professor Tse is a member of the U.S. Academy of Engineering. He is renowned as the inventor of the legendary proportional-fair scheduling algorithm for wireless communications, and is the recipient of prestigious awards such as the IEEE Claude E. Shannon Award and the IEEE Richard W. Hamming Medal. Babylon is led by a team of consensus protocol researchers and experienced layer 1 engineers from around the world.
Babylon's mission is to scale Bitcoin to secure the decentralized economy. To achieve this, Babylon utilizes the three primary facets of Bitcoin: its asset, its reliable timestamping service, and the most censorship-resistant blockspace in the world. To leverage these facets, Babylon is developing three innovative security-sharing protocols: Bitcoin Staking Protocol, Bitcoin Timestamping Protocol, and Bitcoin Data Availability Protocol. Through these pioneering protocols, Babylon envisions a more secure and decentralized future.
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About Chakra
Chakra Network is the first modular settlement layer designed to unlock Bitcoin's liquidity across diverse blockchain ecosystems. Chakra offers a high-performance and parallelized modular settlement solution for efficient liquidity flow across Layer 2’s, AppChains, and native BTC assets.
Chakra Network provides a shared settlement layer that enhances Bitcoin's integration into the broader blockchain landscape, enabling other BTC Layer 2 solutions to focus on execution without the complexities of building settlement infrastructure. This innovative approach unlocks interconnected liquidity and economic security, fostering a dynamic and vibrant ecosystem.
Layer 2 solutions and decentralized applications (DApps) benefit from Chakra's robust liquidity network effects, ensuring secure and scalable transaction processing. Chakra Network empowers Bitcoin ecosystem participants with the tools needed to drive growth and innovation within a secure, scalable, and interoperable framework.