In a press release issued on June 28th, Elastos, the SmartWeb ecosystem provider, announced a partnership with Layer 2 provider BEVM to develop a peer-to-peer loan offering denominated in Bitcoin.
Elastos’ BeL2 aims to revolutionize global finance using Native Bitcoin! ✨
Discover the financial revolution from the ruins of WWII to the digital age and why #Bitcoin might be the "digital gold" and the global reserve currency we need! 🪙https://t.co/uRIRfYfhIW
— Elastos (@ElastosInfo) June 26, 2024
This collaboration seeks to unlock a potential $1.3 trillion in dormant Layer 1 value and anticipates the “Third Age of Bitcoin,” where users will increasingly transact using native Bitcoin, building upon the blooming Bitcoin ecosystem.
Partnering with BEVM to develop this Bitcoin Native loan product allows users to collateralize up to 80% of their assets. In return, they receive L2 credit, like stablecoins, based on terms in a Bitcoin-assured smart contract. To facilitate this, let’s delve into the important role of BeL2.
What Part Does BeL2 Play?
Launched in December 2023, the Bitcoin Elastos Layer 2 (BeL2) protocol enhances Bitcoin’s capabilities. This Layer 2 solution introduces functionalities like staking and smart contracts directly within the Bitcoin network.
We have launched a 'BTC Oracle' MVP which is part of our innovative #Bitcoin L2 solution, BeL2 ✨
This BTC Oracle is not invasive to the #Bitcoin network but rather allows the flexibility for #Elastos to help drive security and scale for Bitcoin innovation💡
📖:… pic.twitter.com/WBUvRGwCCr
— Elastos (@ElastosInfo) March 21, 2024
Central to this partnership is the development of a BTC Oracle, a collaboration between BEVM and Elastos’ BeL2 protocol. This Oracle will provide real-time monitoring and analysis of all Bitcoin-based activity.
From staking to intricate multi-party agreements facilitated by smart contracts, the BTC Oracle, powered by BeL2, will offer invaluable insights into Bitcoin’s usage patterns, empowering users to manage relationships through the currency.
Elastos leverages BeL2’s unique ZK-proof process to maintain Bitcoin’s integrity. This process facilitates transactions without requiring bridging, wrapping, or interfering with the Bitcoin Layer, thus preserving its core functionality.
By circumventing network congestion and eliminating unnecessary fees, Elastos and BEVM can provide a truly peer-to-peer loan product characterized by disintermediation and anonymity.
Only in the event of a dispute between parties would third-party verification, along with its associated costs and potential delays, become necessary.
Hakan Sezikli, Co-founder of the BEVM Foundation, emphasized the transformative potential of this partnership:
“The BeL2 protocol perfectly reflects what BEVM is all about; developing and supporting EVM-compatible DApps which can run in the Ethereum ecosystem to operate on Bitcoin L2. The loan offering is the perfect illustration of how such services could revolutionize the finance sector.”
US Tech-Savvy Consumers Trust Bitcoin
This collaboration coincides with Elastos’ BIT (Bitcoin; Innovation & Trust) Index, revealing a surge in excitement for Bitcoin among US tech-savvy consumers.
The index indicates that 63% of tech-savvy consumers are either “perfectly comfortable” or “excited” about transacting in Bitcoin.
These consumers utilize Bitcoin for various purposes, from storing savings to hedging against inflation, with over half of US respondents engaging in Bitcoin transactions at least monthly.
Additionally, 24% trust Bitcoin even more than traditional methods like online banking or cash for safeguarding their savings. This growing trust signifies a potential turning point in US early adopters’ understanding and adoption of cryptocurrencies.
Chen envisions a future where users control their data, liberating themselves from the grip of Web 2 giants. He stated:
“While broader adoption in the US requires further efforts, Elastos remains committed to developing technologies that simplify Bitcoin interaction and transactions.”
As cryptocurrency gains prominence, it has become a central topic in the upcoming US election, dividing opinions within both political and cryptocurrency communities.