Babylon Labs, the team behind one of Bitcoin's largest staking protocols, has announced plans to build a novel bridge connecting Bitcoin to the Cosmos network using cutting-edge zero-knowledge technology.
The project, developed in collaboration with Bitcoin developers Fiamma, leverages the BitVM2 computing framework to enable Ethereum-style smart contracts on Bitcoin. This advancement opens new possibilities for zero-knowledge proofs - a cryptographic method allowing parties to verify information without revealing the underlying data.
The bridge aims to tap into Bitcoin's massive stored value, making it accessible across different blockchain ecosystems while addressing Bitcoin's speed and scaling constraints. This development aligns with broader industry efforts to expand Bitcoin's utility beyond simple transactions.
Babylon Labs has already established itself as a leader in Bitcoin innovation through its staking protocol, which holds approximately $5.5 billion in total value locked (TVL). The protocol enables Bitcoin holders to use their BTC to secure other blockchain protocols and decentralized applications.
The announcement builds on momentum generated by BitVM's introduction in October 2023, which marked a major step forward in Bitcoin programmability. BitVM enabled faster, more cost-effective transactions through rollups while maintaining security standards.
The technology has sparked enthusiasm among Bitcoin developers, particularly those focused on cross-chain connectivity. Similar initiatives include Citrea, a zero-knowledge rollup project backed by Galaxy Digital, which launched a BitVM-based bridge on Bitcoin's test network in September.
This new bridge project represents another step toward expanding Bitcoin's capabilities while preserving its core security features through advanced cryptographic techniques.