Chakra Protocol Aims to Unlock Bitcoin's Economic Potential with Secure Staking System

According to PANews, the Chakra Protocol aims to establish a secure Bitcoin proof-of-stake system, activating the liquidity of long-term held Bitcoin assets and providing decentralized services maintained by asset holders. As a Bitcoin re-staking protocol, it seeks to utilize the strongest blockchain network to protect new chains and applications, using cutting-edge zero-knowledge proof technology to unlock economic potential for Bitcoin holders. The challenge is evident, as Bitcoin holders desire to benefit from staking returns without compromising the security of their Bitcoin. Chakra addresses this issue by allowing Bitcoin holders to enjoy multiple benefits without worrying about re-staking security concerns. What sets Chakra Protocol apart in Bitcoin re-staking? Self-custody staking: Bitcoin enthusiasts trust Bitcoin due to its highly decentralized nature and robust security. Therefore, compromising security for staking returns may be a significant concern. Chakra's solution allows Bitcoin holders to stake without transferring assets out of their wallets, using time-locked scripts to ensure no third-party risk is involved. ZK-based staking proof: In Chakra's solution, Bitcoin staking events are proven through zero-knowledge proofs, which can be verified off-chain to access on-chain information without connecting to the Bitcoin network. Chakra will use STARK to implement the proof system, providing a zero-knowledge proof solution without a trusted setup and enhanced security compared to SNARK. Re-staking services: Staking proofs can be verified in various places, granting multiple rights to stakers and providing a range of services maintained by stakers. Each right or service can be customized to meet specific needs, such as AI, DeFi, gaming, etc., all facilitated and secured by Bitcoin holders. Bitcoin holders only need to stake once, and they are then authorized to extend Bitcoin in many aspects. Chakra's applications: The Chakra Protocol supports various Bitcoin applications, leveraging Bitcoin's strong security while unleashing the liquidity of Bitcoin assets. Guiding new Bitcoin second layers: Staking proofs can be verified on Bitcoin's second layer, allowing stakers to participate in second-layer consensus and governance. These second layers share Bitcoin's security, providing data availability services and execution environments maintained by stakers. For example, a Bitcoin second layer maintained by stakers can be launched and run alongside the Cairo VM. Various benefits for stakers: Staking proofs can be used to create derivatives of Bitcoin assets, providing opportunities for users to use Bitcoin-backed assets in DeFi protocols. For instance, similar to stETH in the Ethereum ecosystem, Chakra Protocol can be used to issue stBTC and build DApps to interact with it.