NEWSLETTER
The Decentralized Finance Landscape (DEFI) continues to evolve, and bitcoin -centered solutions are gaining impulse. BTCFI is an emerging sector that transforms bitcoin (btc) of a passive value warehouse into an active asset in Defi.
A new Co -Intelegraph Research and Elastos report deepens how bitcoin's security helps create trust and scalable financial ecosystems.
bitcoin expanding paper in defi
Defi has been traditionally dominated by ethereum, which Accounts For more than 50% of the total total value of $ 175 billion of the sector (TVL). However, bitcoin's strong security and liquidity make it an attractive basis for Defi's innovation.
Despite its strengths, the lack of functionality of bitcoin's native intelligent contract has historically limited its role in decentralized finances. The appearance of defi -centered solutions centered in bitcoin aims to close this gap and allow bitcoin headlines to participate in loans, emission of stable and interoperability of cross chain without risks of custody.
Elastos: taking advantage of bitcoin's security for decentralized applications
Elastos stands out as one of the main players in this evolution by incorporating fused mining, a method that allows secondary block chains to inherit bitcoin's security.
Because approximately 50% of the total of 800 eh/s of bitcoin CONEHRATE It assures elastos, the platform is positioned as one of the most robust computationally robust -linked networks. This guarantees that the financial applications built on elastos maintain a level of security similar to that of bitcoin himself.
In the nucleus of elastic infrastructure is its Elastic consensus Model, a hybrid mechanism that integrates the auxiliary work test, the united stagnation test and the integrity test.
This multi -layer approach allows elas to provide safe and scalable financial services and improve its attractiveness for defi applications. He Intelligent elasture chainA side chain compatible with the ethereum virtual machine facilitates the development of decentralized applications (DAPP) to guarantee perfect integration with the broader defi ecosystem.
Bel2: An advance for Btcfi
An outstanding important report is the Bel2 Arbiter Network, designed to bring confidence bitcoin transactions to Defi. BEL2 take advantage of zero knowledge tests (ZKP) to verify bitcoin transactions in elasture and ethereum networks without depending on centralized custodians.
This mechanism allows bitcoin to be used in Defi protocols without synthetic assets or intermediaries and addresses a long data challenge in BTCFI.
This model has already attracted institutional interest. A <a target="_blank" href="https://elastos.info/announcement/launch-new-bretton-woods-project-harvard-bitcoin-stablecoin/” rel=”noopener noreferrer nofollow” target=”_blank”>initiative Directed by students and alumni of Harvard University, it is developing a stablcoin backed by btc using Bel2. The platform also admits decentralized loans that allow Bitcoins headlines to collaborate loans in Stablecoins while preserving exposure to the appreciation of btc prices.
The position of the elastos market and the future potential
The BTCFI of elastos approach competes with the established bitcoin solutions defi as batteries and holders. The batteries benefit mainly from the purpose of bitcoin, and the holder focuses on the compatibility of EVM, while elastos is distinguished by the combination of high security (through fused mining) and the interoperability of the cross chain. This positions elastos as a formidable player in the BTCFI landscape.
However, the report also identifies some challenges, such as regulatory uncertainties, ecosystem awareness and some technical complexities. Despite these obstacles, the combination of bitcoin's safety, the execution of intelligent contracts without trust and institutional support positions it for potential growth in the BTCFI evolutionary sector.
Challenges and opportunities in the adoption of bitcoin defi
As the blockchain industry changes towards the interoperability of the cross chain and decentralized governance, bitcoin assets are expected to play an important role in the remodeling of traditional and decentralized finances.
Elastos innovations, particularly through Bel2 and its Decentralized Identity Framework (DID), aim to improve the safety, scalability and institutional adoption of bitcoin in Defi.
With finance secured by Bitcoins <a target="_blank" href="https://www.galaxy.com/insights/research/crypto-predictions-2025/” rel=”noopener noreferrer nofollow” target=”_blank”>projected To expand significantly, elast infrastructure provides a solid base for the next wave of decentralized financial applications.
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