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Architecture

The Babylon network has a layered architecture composed of Bitcoin scripts, Babylon node built on Cosmos SDK, Finality Providers, and peripheral software solutions that are designed to securely interact with Bitcoin Chain so it can facilitate staking and multi-staking of Bitcoin.

Overview of Babylon Bitcoin Staking ProtocolOverview of Babylon Bitcoin Staking ProtocolBabylon Architecture

On the top layer, Babylon ensures Bitcoin Chain and Babylon Genesis are securely connected and synchronized by using Checkpointing. It also keeps track of Bitcoin holders' staking transactions with a BTC staking monitor and indexer. The Vigilante network is used to monitor the Bitcoin Chain and Babylon Genesis for any malicious activities. Anyone can run these nodes and help maintain the security of the network.

The middle layer is the Babylon node. It is built on Cosmos SDK and implements the Babylon Bitcoin staking logic. It implements the eight core modules of: Babylon Epoching, Checkpointing, BTC Checkpointing, BTC Light Client, Zone Concierge, BTC Staking, Finality, and Rewards. It also includes the Babylon Genesis and the Validators and Finality Providers set and runs on CometBFT for consensus.

At the bottom layer, EOTS Manager and Finality Provider nodes provide the means for group signatures and validating the data of an external network. Covenant Emulator provides enforcements on the transaction data for staking, unbonding and slashing. The IBC relayer and Babylon Contracts, which are usually implemented by BSNs consuming Bitcoin security help to communicate and standardize the data exchange between them.

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