Elastos Launches BeL2: A Layer 2 Network for Bitcoin
Elastos has announced the launch of BeL2, a Layer 2 network built on Bitcoin, with the aim of introducing advanced BTC transactions on its blockchain. This move comes as BTC’s narrative is fueled by innovations such as inscriptions and spot ETF chatter, leading to a growing interest in the cryptocurrency.
Unlocking Value with BeL2
BeL2 allows Bitcoin holders to stake their assets directly and earn interest on their holdings. This new development means that Bitcoin is now considered “smart,” as it enables users to put their dormant assets to work. Elastos aims to unlock a potential multi-billion dollar market through the BeL2 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.”
Sasha Mitchel, Head of Strategy and Operations, BeL2
In addition to BTC staking, Elastos plans to offer cheap transactions on native decentralized applications. The company also intends to enable smart contract deployment and irreversible digital agreements between participants on the BTC blockchain.
“Now Bitcoin owners can put the world’s most popular, liquid, and secure digital currency to work, potentially unlocking over $700 billion in value.”
Sasha Mitchel, Head of Strategy and Operations, BeL2
Bitcoin’s Increasing Interest and Inscriptions
Elastos unveiled its plan to bootstrap decentralized finance (defi) on Bitcoin during a period of heightened interest in the cryptocurrency. BTC has experienced significant growth since the start of 2023 and is expected to continue rallying. Additionally, users have developed a technology called inscriptions, which involves adding digital data to transactions similar to NFTs on Ethereum and Solana blockchains.
Inscriptions account for a substantial portion of the transaction fee revenue generated by BTC miners this year, while also consuming a minority share of block space according to Glassnode.
Hot Take: Unlocking the Potential of Bitcoin
Elastos’ launch of BeL2 on the Bitcoin blockchain marks an important milestone in unlocking the potential of Bitcoin. With the introduction of BTC staking and cheap transactions on decentralized applications, along with the deployment of smart contracts and digital agreements, Elastos aims to tap into a multi-billion dollar market. This move aligns with the increasing interest in Bitcoin and its adoption in various innovative applications such as inscriptions. By enabling Bitcoin holders to put their assets to work, Elastos seeks to unlock significant value and further solidify Bitcoin’s position as a smart and versatile digital currency.
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