In a groundbreaking partnership set to transform the financial landscape, Elastos, a SmartWeb ecosystem provider, has teamed up with Layer 2 (L2) provider BEVM to develop a peer-to-peer Bitcoin-denominated loan offering based on Elastos’ BeL2 protocol. This innovative venture aims to unlock up to $1.3 trillion of dormant Layer 1 Bitcoin value, as indicated by Elastos’ BIT (Bitcoin; Innovation & Trust) Index, which reveals that over two-thirds of tech-savvy U.S. consumers are comfortable using Bitcoin.
The collaboration allows users to collateralize up to 80% of their assets in exchange for L2 credit, such as stablecoins, through Bitcoin-assured smart contracts. Elastos’ BeL2 protocol ensures the integrity of transactions with a unique ZK-proof process, eliminating the need for bridging, wrapping, or interfering with the Bitcoin Layer, thereby avoiding network congestion and additional fees.
“The BeL2 protocol perfectly reflects BEVM’s mission of developing and supporting EVM-compatible DApps within the Ethereum ecosystem to operate on Bitcoin L2. This loan offering is a prime example of how such services could revolutionize the finance sector,” said Hakan Sezikli, Co-founder of the BEVM Foundation.
Launched in December 2023, Elastos’ BeL2 protocol is a Layer 2 solution for Bitcoin, enabling functionalities such as staking and smart contracts directly in Bitcoin. BEVM will work with Elastos to deliver a Bitcoin Oracle to monitor and analyze all Bitcoin-based activity in real time. This BTC Oracle will provide essential insights into Bitcoin usage, enhancing the protocol’s capabilities.
The partnership aligns with data from Elastos’ BIT Index, which indicates growing enthusiasm for Bitcoin among U.S. tech-savvy consumers. The survey showed that 63% of respondents feel “perfectly comfortable” or “excited” about using Bitcoin, with over half transacting in it at least once a month. Common uses include storing savings (44%), online purchases (42%), international money transfers (34%), mitigating inflation effects (23%), and reducing banking costs (15%).
The data also highlighted a high level of trust in Bitcoin, with 24% of respondents placing the most trust in the digital currency, closely following online banks (25%) and surpassing cash (23%).
Rong Chen, co-founder of Elastos, commented on the survey results, “We are at an inflection point in the understanding and acceptance of cryptocurrencies among early adopters in the U.S., reflecting a global trend towards the Third Age of Bitcoin. We are on the verge of a new era of commerce where users control their data, free from the constraints of Web 2 tech giants.”
Additionally, the BIT Barometer revealed significant discomfort among respondents (31%) about sharing personal information on Web 2 social media platforms for messaging or transactions.
The Elastos and BEVM partnership represents a significant step forward in unlocking value for Bitcoin users, showcasing a joint effort to advance the use of digital currency in the modern financial ecosystem.
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