- PoS protocols are based on the immutable and tried-and-true Bitcoin blockchain
- The larger Bitcoin community continues to develop new methods for blockchain consensus
Thanks to the work of a Stanford University scientist, the Proof-of-Work consensus process of the Bitcoin network may one day prove useful for securing a number of Proof-of-Stake (PoS) smart contract blockchain protocols.
According to David Tse and his research team, the leading cryptocurrency is being used to bolster PoS networks’ security. Tse co-founded Babylon blockchain, which seeks to leverage Bitcoin BTC tickers down $25,975 to increase network security and encourage BTC owners to take part in what is a novel method that permits the staking of Bitcoin on Proof-of-Stake networks.
Tse, in an interview with a major news agency, described that despite the limited ability of the Bitcoin scripting language to express complex spending conditions, Babylon connects a PoS-based slashing mechanism to the Bitcoin network via the Bitcoin scripting language. This makes it possible to create smart contracts that can define precise expenditure requirements, they have used advanced cryptography to translate the slashing conditions of a PoS chain into a spendable transaction on the Bitcoin blockchain.
Proof-of-Stake (PoS): What Is It?
A consensus mechanism for processing transactions and adding new blocks to a blockchain in cryptocurrencies is called Proof-of-Stake. A consensus mechanism is a technique for ensuring the security of a distributed database and validating entries. Since the database in the case of cryptocurrencies is referred to as a blockchain, the consensus process protects the blockchain.
Block and transaction verification requires less computational work when using Proof-of-Stake. Heavy computing needs to keep the blockchain secure under Proof-of-Work. Proof-of-Stake reduces the amount of computing labor required by changing how blocks are confirmed using coin owners’ devices. Owners are eligible to validate blocks and receive rewards by staking their currencies in exchange.
Validators are chosen at random to verify blocks of information and confirm transactions. Instead of employing a competitive rewards-based approach like proof-of-work, this system randomly selects who is eligible to receive fees.
How Can Bitcoin Secure PoS Blockchain Protocol
Immutable and tried-and-true blockchain: The Bitcoin blockchain has been in use since 2009 and has consistently shown itself to be impervious to attacks. The massive amount of computing power devoted to Bitcoin’s PoW consensus method is what gives its blockchain, security. This resilience can boost trust in PoS protocols, particularly when using Bitcoin as a secondary security layer or drawing inspiration from its design principles.
Decentralization and power-sharing: PoS protocols are reliant on a network of stakeholders or validators who own a specific quantity of the native cryptocurrency. The decentralization ethos of Bitcoin and PoS systems are complementary since both seek to disperse authority and decision-making over many users. To maintain decentralization and avoid any single organization gaining excessive power, PoS protocols can take a cue from Bitcoin’s network topology.
Resistance to Sybil attacks: A Sybil attack is one in which an attacker creates many identities to take over the network. Bitcoin’s PoW consensus algorithm provides considerable resistance to this type of assault. Because they need token ownership, PoS systems are naturally immune to Sybil assaults, but they can still gain from Bitcoin’s expertise and mitigation strategies.
Smart contract capabilities: Through initiatives like the Lightning Network and Rootstock, Bitcoin’s growth has cleared the path for the introduction of smart contract capabilities. With the help of these advances, Bitcoin can communicate with other blockchain protocols, such as PoS networks. The functionality of PoS protocols can be increased and their compatibility improved by utilizing Bitcoin’s smart contract features.
Interchain communication: Due to its popularity and extensive use, bitcoin is the perfect bridge money for cross-chain interoperability. PoS protocols can take advantage of Bitcoin’s trusted and established network to make it easier to communicate and do business with other blockchains. The overall security and usefulness of PoS systems may be improved by this compatibility.
Conclusion
The larger Bitcoin community keeps coming up with fresh methods for blockchain consensus. The advantages of proof-of-stake chains have prompted them to quickly accept novel ideas like zero-knowledge proofs (ZK-proofs). Eli Ben-Sasson, a co-founder of StarkWare and the technology’s inventor, thinks that the proof-of-work Bitcoin blockchain may gain a lot from ZK-proofs.
