How Coinspect Helped Secure Babylon's 1000 BTC Cap
We are thrilled to announce that yesterday, Babylon Bitcoin Staking reached its 1000 BTC cap as expected and without any incidents. The success of this launch was remarkable: the 1000 BTC limit was reached in less than six blocks. This high demand led to a surge in Bitcoin miner fees, highlighting the significant interest in the platform despite the increased fee cost for participants.
Our collaboration with Babylon has significantly strengthened their security. This includes both the recent Babylon Phase-1 launch and the upcoming Phase-2. Drawing on our decade-long expertise in Bitcoin security, we identified unique issues. As a result, we enhanced the safety of the staking process for all users.
The Bitcoin L2 (aka Build on Bitcoin) ecosystem is experiencing unprecedented growth, driven by innovative developments in Bitcoin layers and smart contract capabilities. Babylon Bitcoin staking protocol connects Bitcoin holders with the demand for network security from Proof-of-Stake systems like PoS L1 chains, L2s, Data Availability layers, oracles, and others. At Coinspect, we are proud to be at the forefront of ensuring the security and robustness of innovative Bitcoin-native protocols.
Securing the Future of Bitcoin Staking
In May 2024, Babylon engaged Coinspect to perform a comprehensive source code review of their Phase-1 deployment. Our team evaluated the security of various libraries and applications developed by Babylon to enable staking during this initial phase. Babylon Phase-1 aims to allow stakers to lock their Bitcoin funds with the Babylon staking script and keep track of these stakes and their status.
Our collaboration with Babylon extends beyond this initial security review. We’ve been further strengthening ecosystem components and conducting an in-depth review of the Phase-2 prototype. This review has led to important security enhancements to Babylon Phase-2, which is currently under development.
Babylon’s decision to engage Coinspect for an early Phase-2 security assessment underscores their commitment to proactively ensuring platform security. Coinspect’s unique expertise in Merged Mining, Bitcoin sidechains, L1/L2 node security, Ethereum Virtual Machine (EVM) implementations, and smart contract audits resulted in actionable insights, enabling Babylon to implement concrete improvements to their protocol.
Babylon Phase-1 security audit report
You can read our comprehensive security audit for Babylon Phase-1 here. Our collaboration led to significant improvements in Babylon’s Phase-1 launch, directly benefiting users in several ways:
- Ensuring correct processing of staking and withdrawal transactions
- Protecting users from potential fund lockups due to incorrect staking values
- Safeguarding against attacks that could prevent unbonding or conceal withdrawals
- Improving the overall reliability and trustworthiness of the staking platform
Bitcoin L2 Security
At Coinspect, we’re committed to fostering the growth of the Bitcoin L2 ecosystem by providing expert security assessments tailored to Bitcoin-native protocols. We believe that security should be a cornerstone of the Bitcoin L2 movement, not an afterthought.
Secure your Bitcoin L2 project with Coinspect. Contact us today for expert Bitcoin-native security audits.
