BVS (Bitcoin Validated Services) is a system where operators use BTC backed collateral to secure Web3 applications under predefined slashing conditions. Services like “oracles, bridges, or data layers” are run by operators who risk losing their stake if they act maliciously or incorrectly. What Role Does @satlayer Play? SatLayer is one of the first systems to support this model, but here’s the key: 🔸 Users first stake their BTC via Babylon. 🔸 In return, they receive a wrapped token (eg cBABY). 🔸 This token is then transferred to SatLayer, where it is used as collateral to secure BVS applications. 🔸 BVS developers define rules; if operators violate them, the slashing mechanism is triggered. Who Does What? Developer: Defines the BVS logic and slashing conditions. Operator: Runs the service using staked cBABY as collateral. Slasher: Monitors behavior and slashes the stake in case of violations. User: Stakes BTC and indirectly supports BVS while earning rewards. Why Is It Important?👇🏻 While wrapped tokens are used, the process starts natively on the Bitcoin chain via Babylon. Each application can define custom security logic 👉🏻 fully programmable risk management. SatLayer brings BTC backed modular security to Web3 without relying on Ethereum or wrapped assets. In short: SatLayer doesn’t operate with native BTC directly, but thanks to Babylon’s architecture, it enables a bridge free, stake based coordination system that begins on Bitcoin and supports decentralized application security through programmable slashing.
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