Elastos announced the launch of BeL2, a Layer 2 network built on top of bitcoin, to introduce sophisticated btc transactions to its blockchain.
The blockchain network seeks to introduce a key defi solution in bitcoin (btc) as innovations such as ETF listings and conversations fuel the btc narrative. The new L2 network will bring participation to bitcoin and aim to unlock a potential multi-billion dollar market through its platform.
The arrival of BeL2 means that bitcoin is now “smart,” highlighting the potential for bitcoin holders to stake their assets directly and earn interest on their holdings. It has always been an anomaly that bitcoin reserves remained effectively “idle” between transactions.
Sasha Mitchel, Head of Strategy and Operations, BeL2
In addition to staking btc and providing direct yield through the BeL2 network, Elastos also plans to offer economic transactions on native decentralized applications. However, the company's statement did not clarify whether this product would integrate the Lighting network, another purpose-built L2 network focused on facilitating fast and affordable btc-denominated transactions.
Furthermore, Elastos plans to chart the defi course in btc by enabling the implementation of smart contracts and irreversible digital agreements between participants.
Now bitcoin owners can put the world's most popular, liquid and secure digital currency to work, potentially unlocking more than $700 billion in value.
Sasha Mitchel, Head of Strategy and Operations, BeL2
Elastos revealed its plan to essentially power decentralized finance on bitcoin during a period of heightened interest in the blockchain and cryptocurrencies' largest token. Not only is btc up more than 150 percent since early 2023 and expecting a continued rally following a brief correction, but users have also developed a technology called inscriptions.
This involves adding digital data to transactions in a method similar to NFTs on blockchains like ethereum and Solana. Signups account for 20 to 30 percent of the total transaction fee revenue generated by btc miners this year. At the same time, the inscriptions also consumed a minority part of the block space according to glass node.
<img decoding="async" width="1024" height="590" src="https://crypto.news/app/uploads/2023/12/bitcoin-inscriptions-fee-share-1024×590.jpg” alt=”Shared bitcoin fee for registrations”/>
