Babylon Labs, developer of the largest BTC staking protocol, Bitcoin $94,343.8Cosmos to improve the interoperability of the world’s oldest blockchain. 
$6.6 It builds a trust-minimized bridge with its network. This step aims to bring new functionality to the Bitcoin ecosystem.
Ethereum-Like Smart Contracts with BitVM2 Technology
Babylon, in partnership with Bitcoin developers Fiamma, Ethereum 
$3,243.3 It uses the BitVM2 computing paradigm, which enables smart contracts to run on Bitcoin. This technology makes it possible to bridge digital assets between different blockchains, paving the way for zero-knowledge technology.
Zero-knowledge calculations allow parties to verify information without revealing it to each other. This is based on the secure transfer of digital assets between different blockchains. Developers such as Babylon Labs and Fiamma aim to use this technology to use the value stored in BTC to fund other ecosystems and enable transactions on blockchains free of Bitcoin’s speed and scale limitations.
The Future of BitVM2 and Programmability
Introduced by Robin Linus in October 2023, BitVM2’s predecessor is seen as a turning point in making Bitcoin more programmable. BitVM2 provides a rollup that can handle faster and cheaper transactions without compromising security. This allows bridges to securely transfer BTC to the rollup and then bring the BTC back.
BitVM2 has aroused great interest among developers developing projects on Bitcoin. A zero-knowledge rollup called Citrea, backed by Galaxy Digital, deployed a BitVM-based bridge to the Bitcoin testnet in September. This bridge is designed to be compatible with the Ethereum Virtual Machine (EVM).
Babylon’s Bitcoin staking protocol aims to use BTC to secure other protocols and decentralized applications and has a total value lock of approximately $5.5 billion.
These developments are seen as part of a movement to derive more benefits from Bitcoin and aim to bring to Bitcoin functionality common in networks such as Ethereum. In this way, Bitcoin is preparing to play a more active role in the DeFi ecosystem.
On the other hand, institutions such as Lombard Finance express their opinion that Bitcoin could be the preferred collateral of DeFi.
This new bridge between Bitcoin and Cosmos could increase the interoperability of blockchains, enabling digital assets to be used in a broader ecosystem. Such developments could contribute to Bitcoin becoming more flexible and functional and create new opportunities for users.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
