Future of Shared Security with Babylon & Eigenlayer

Another technological breakthrough in the industry is the idea of "Shared Security," which combines multiple blockchains to utilize the strength of dependable blockchain networks. This article provides information on this idea from REDeFiNE TOMORROW 2023, which features David Tse, CEO and co-founder of Babylon, Sreeram Kannan, CEO and co-founder of Eigenlayer, and Pailin (Pie) Vichakul, COO and partner of venture capital of SCB 10X, in a discussion on the topic of "Future of Shared Security with Babylon & Eigenlayer."

Learn about the idea of Shared Security.

It is widely acknowledged that starting new projects depends on a wide range of variables and costs an immense amount of money to support the growing number of users. This leads to the idea of "Shared Security," which is the extension of the highly secure blockchain network into other domains.

This idea describes a mechanism where applications pool together on a dependable decentralized system. It is inspired by the Ethereum idea, which allows different applications to be developed using the same programming language.

Transparency and public disclosure are the distinctive features of using the security mechanism of a blockchain. While Eigenlayer concentrates on the Ethereum Shared Security model, Babylon implements many appealing Bitcoin security features.

Reasons for selecting a network for Shared Security

Both platforms work to highlight the benefits of the two networks and increase usage. Babylon tries to integrate the robust security system of Bitcoin into any applications that are supported by the vast Layer-2 economy of Bitcoin.

Eigenlayer strives to achieve Permissionless innovation, or the state of being a protocol where anyone can participate in usage without restriction on Ethereum, and the full functionality of Ethereum's Stake system. The key technology behind Eigenlayer is "Restaking," which is the act of using Ethereum to stake other services concurrently, allowing users to take part in validation services and be paid.

Babylon desires to develop numerous protocols, which is comparable to developing special gadgets using a unique mechanism. It takes the strength of Bitcoin's security maintenance concept and applies it to other applications. The Timestamping Protocol, a method of identifying Bitcoin's obvious and secure time, is revealed in this process as a universal standard to be used with other Proof-of-Stake networks.

Babylon works with 25 Cosmos networks to provide a timestamping service that is safe and expedites token unbonding. It is essential to apply the security of the larger Bitcoin network to the smaller Cosmos network because security risks and fluctuations persist. Additionally, Cosmos has a technology called Inter-Blockchain Communication (IBC), one of the most powerful bridge technologies in the blockchain ecosystem. This is the rationale behind Babylon's decision to go with Cosmos.

The Data Availability Layer is an application that Eigenlayer develops, along with other services that extend from Ethereum. It emphasizes the development of Roll-Ups technology's capacity to speed up the data transfer rate. With the use of off-chain processing and on-chain storage, roll-up is a Layer-2 solution for the Ethereum network that aims to increase capacity.

These services, as well as the platform's various and potential applications, such as Decentralized Sequencing, Fast Settlement Guarantees, Maximal Extractable Value Management, Decentralization Oracles, bridges between roll-ups, and AI-based services, will soon be made available by Eigenlayer.

The main advantage of the Eigenlayer's restaking mechanism is that it lowers the cost of security for smaller networks. Services developed on Eigenlayer will be paid for their work and permitted to join the platform before going live. For those just getting started with restaking, this seems like an attractive deal.

Challenges during platform development

The main challenge for Babylon, a platform requiring extensive cross-network collaboration, lies in effectively communicating the intrinsic security benefits and associated risks of Bitcoin to diverse ecosystems. Eigenlayer expresses concern over the misinterpretation of Vitalik's warning about the overburdening of the Ethereum consensus mechanism, which is simply a suggestion for developers to pick the mechanisms that work best for their particular projects.

Future plans for the two platforms

Both Babylon and Eigenlayer attempt to forge partnerships, move forward, and find the best route for Shared Security, which is still a new idea.

Babylon is working on a project to spread the security of Bitcoin by concentrating on the creation of a layer of smart contracts as a Restaking solution. Despite having a number of security features, Bitcoin does not yet have a dedicated layer for smart contracts.

Sreeram expressed his enthusiasm for Bitcoin's programmability as well as for the staking potential and transparency of the blockchain.

However, managing the blockchain's security challenges is essential, and people should receive the most appropriate advice and education about risk and compensation from Shared Security. These components are necessary for the growth and development of the blockchain industry in the future.

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