Foreword

This introduces an innovative protocol for Bitcoin staking that aims to leverage the substantial yet dormant capital tied up in Bitcoin, valued at approximately 1.3 trillion, to enhance the security of Proof-of-Stake (PoS) networks.

Our proposal allows Bitcoin holders to utilize their idle assets for security enhancement without the need to transfer these assets onto PoS chains. This is achieved through a novel, trustless staking protocol that ensures full slashable security guarantees and incorporates rapid unbonding processes to maintain asset liquidity.

Bloom's design is modular, making it compatible with various PoS consensus mechanisms and suitable as a foundational layer for further development of restaking protocols. Furthermore, we propose a scalable system architecture that employs a Bitcoin-staked Bloom as a control plane, ensuring efficient coordination and synchronization between Bitcoin and multiple PoS networks.

This development not only pioneers a valuable new functionality for Bitcoin but also significantly furthers its integration with the financial ecosystem

Why Staking/Restaking?

Bitcoin staking and restaking introduce significant innovations by leveraging Bitcoin's substantial market capitalization to enhance the security of Proof of Stake (PoS) networks.

These mechanisms allow Bitcoin holders to utilize their idle assets productively, earning rewards while increasing network security without transferring their assets off the Bitcoin blockchain. This not only promotes greater interoperability between different blockchain protocols but also improves economic efficiency by activating dormant capital.

Additionally, features like fast unbonding and liquid staking offer flexibility and maintain liquidity, broadening Bitcoin's use case beyond a mere store of value and laying a foundation for further financial products in the decentralized finance (DeFi) space. Through these developments, Bitcoin staking and restaking significantly enrich the blockchain ecosystem, offering new utility and attracting a broader user base.