David Tse is a Stanford University engineering professor and information theorist who has become a prominent builder in the Bitcoin staking and “security sharing” segment of the crypto market. He is widely known for foundational contributions to modern wireless communications and, more recently, for co-founding Byzantine Research Inc (formerly Babylonchain Inc.), the corporate entity associated with the Babylon Bitcoin staking protocol and related research and development efforts.
Overview
Tse’s profile sits at the intersection of academic research and applied cryptography. In academia, he is recognized for work in information theory and wireless systems that underpins many 3G, 4G, and 5G-era design choices. In crypto, he has focused on extending Bitcoin’s utility beyond payments and store-of-value narratives by developing mechanisms that allow Bitcoin holders to provide economic security to other decentralized systems without surrendering custody of BTC.
History and Background
Tse serves as the Thomas Kailath and Guanghan Xu Professor of Engineering at Stanford University. His research spans information theory, distributed systems, and applied cryptography, with a track record that includes both theoretical advances and practical influence on industry standards.
He is often credited as the inventor of proportional-fair scheduling, a resource allocation approach used broadly in cellular networks. Tse has also co-authored widely cited academic work and textbooks in communications, contributing to the education of engineers and researchers working on modern networking infrastructure.
Crypto Focus and the Move Toward Bitcoin Security Sharing
Tse’s move into crypto has centered on a specific thesis, Bitcoin’s security and liquidity can be leveraged to secure other networks and services without turning BTC into a wrapped asset or moving it into a third-party bridge. In interviews and public commentary, he has framed this as a path to expanding Bitcoin’s role in a multi-chain world while keeping custody and settlement anchored to the Bitcoin base layer. A discussion of his perspective is available in a CryptoSlate SlateCast episode: Babylon Chain aims to enhance Bitcoin’s utility through staking.
Byzantine Research Inc and Babylon
Byzantine Research Inc (formerly Babylonchain Inc.) is associated with the development and commercialization of Babylon, a protocol designed to make Bitcoin stakeable in a self-custodial way. The public-facing ecosystem commonly refers to Babylon Labs as the builder of the staking stack, while the protocol itself is positioned as infrastructure that PoS chains, rollups, and services can integrate to tap Bitcoin-denominated economic security.
CryptoSlate has covered Babylon’s efforts across funding, ecosystem partnerships, and the evolution of Bitcoin staking narratives, including: Babylon secures $70 million to turn Bitcoin into PoS security backbone.
Technology and Features
Babylon’s approach is generally described as “trustless” and “self-custodial,” aiming to avoid wrapping BTC into synthetic representations on other chains. At a high level, the system uses Bitcoin script-based time locks and protocol coordination to let BTC holders opt into staking commitments while keeping funds controlled by the original holder’s keys. In return, users may earn rewards denominated in the systems they help secure rather than in BTC itself, depending on the integration design.
- Self-custodial BTC commitments: Bitcoin remains under user control while participating in staking-style security provision.
- Security sharing for PoS ecosystems: Targets PoS chains, L2s, DA layers, and related services seeking additional economic security.
- Compatibility with liquid staking designs: Can serve as infrastructure for liquid staking tokens and yield products built on top of Bitcoin staking frameworks.
For a broader overview of the emerging category, see: What you need to know about Bitcoin staking.
Notable Milestones and Ecosystem Activity
Babylon’s progress has been measured through staged launches and partnerships that expand the practical surface area of Bitcoin staking.
- Funding and positioning: Babylon’s financing has been framed around using Bitcoin as a security backbone for PoS systems, covered in CryptoSlate’s funding report: $70 million raise coverage.
- Partnerships: Integrations have included liquid staking initiatives such as: Babylon partners with pSTAKE to launch Bitcoin liquid staking.
- Expansion narratives: Sponsored ecosystem updates have highlighted multi-chain programmability goals, including: Sui Foundation teams up with Babylon Labs, Lombard and Cubist.
Use Cases and Market Position
Tse’s work positions Bitcoin staking as an alternative to bridging models that depend on custodians or wrapped assets. The intended beneficiaries include PoS networks seeking additional security, Bitcoin holders looking for yield-like mechanisms, and DeFi builders creating collateral and liquidity products that remain tied to native BTC. This thesis is also part of a broader market trend where security, liquidity, and incentives are increasingly modularized across chains, particularly between Bitcoin and ecosystems influenced by Ethereum-style staking economics.
Risks and Considerations
Bitcoin staking infrastructure introduces new technical and operational risks. Protocol complexity, integration quality across chains, and the correctness of slashing and settlement assumptions can affect user safety and network outcomes. Market participants also weigh the tradeoff between earning rewards and committing BTC for fixed periods, alongside potential fee impacts and changing demand for lock-time transactions. As the category evolves, ongoing audits, transparent risk communication, and conservative rollout practices remain central to adoption.
