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Non-Custodial Bitcoin Staking

Over 1.5 trillion dollars' worth of Bitcoin has remained idle, yielding no native yield for over its lifetime. Since Bitcoin is a Proof-of-Work blockchain, its holders do not get the yield benefits native to Proof-of-Stake chains. Nevertheless, Core has delivered Proof-of-Stake benefits to the definitive Proof-of-Work blockchain. Non-Custodial Bitcoin Staking substantially enhances Core’s security model while unlocking Bitcoin-native yield for the first time. This innovative approach allows Bitcoin holders to participate in and earn from Satoshi Plus without giving up custody of their Bitcoin, thereby integrating Bitcoin's economic power with Core's advanced blockchain functionalities.

Overview​

Core’s Non-Custodial Bitcoin Staking allows Bitcoin holders to earn CORE tokens without giving up control of their private keys or transferring their Bitcoin to a third party, external smart contract, or multi-party computation (MPC) wallet. Non-Custodial Bitcoin Staking lets Bitcoin holders securely lock their Bitcoin natively on the Bitcoin network. At the same time, the stakers can actively contribute to the validator election on the Core network, strengthening its security and decentralization through the Satoshi Plus consensus mechanism. This approach ensures that Bitcoin remains under the user’s control while enabling them to support network security and earn rewards.

Rationale Behind Core’s Non-Custodial Bitcoin Staking​

Core blockchain offers Non-Custodial Bitcoin Staking as a strategic move to enhance its decentralization and security. By incorporating Bitcoin, which has a robust and well-established network, into its consensus mechanism, Core can leverage Bitcoin's decentralization and security features. Through the Non-Custodial Bitcoin Staking, Core leverages Bitcoin security and provides the first-ever non-custodial Bitcoin native yield generation opportunities to the Bitcoin community. Participating in Non-Custodial Bitcoin Staking offers an additional incentive: earning CORE tokens. This is a way for Bitcoin holders to retain complete custody of their Bitcoin assets without transferring them elsewhere and receive additional rewards in CORE tokens.

Advantages of Non-Custodial Bitcoin Staking​

  1. No risk to principal BTC: Users can stake their bitcoins without involving any new trust assumptions, slashing, or protocol risks. Their principal BTC remains under their custody and on the Bitcoin blockchain, leveraging the high security and trust already provided by Bitcoin's robust infrastructure.
  2. Self-custody and 100% secure: Users only need to send themselves the staking transaction on the Bitcoin network, and the Bitcoin assets DO NOT need to leave the Bitcoin network.
  3. The Bitcoin Risk-Free Rate: By introducing zero new trust assumptions, Core’s Bitcoin staking unlocks riskless yield for Bitcoin holders.
  4. Bitcoin-Nativity: Using Bitcoin’s native absolute time locks, Bitcoin stakers retain full custody of their Bitcoin.
  5. Sustainable Yield: This mechanism transforms Bitcoin into a yield-bearing asset, whereby stakers can earn a portion of Core’s fixed emissions and gas fees in CORE tokens for securing the Core network.
  6. Network Integration: Non-Custodial Bitcoin Staking integrates Bitcoin holders into Core’s consensus mechanism, contributing to the network’s security and decentralization.

Conclusion​

Non-Custodial Bitcoin Staking transforms the Bitcoin asset from a passive Store of Value into an active, yield-bearing, and security-providing asset. Bitcoin staking allows Bitcoin holders to earn the Bitcoin Risk-Free Rate while contributing to the security of a smart contract platform designed to unlock more Bitcoin asset use cases.