Elastos Acquires $20 Million in Funding to Expand Its Indigenous Bitcoin Network
The Elastos project, a leading player in the blockchain industry, has unveiled its BeL2 utility layer, a groundbreaking development designed to make Bitcoin more suitable for Decentralized Finance (DeFi) applications. This innovative layer aims to unlock Bitcoin's potential for DeFi by enabling trustless, multi-address, cross-chain operations with novel fee and consensus mechanisms, thereby overcoming Bitcoin's traditional limitations in scalability and programmability.
BeL2 enables the transfer of Zero-Knowledge Proofs across chains, a feature that allows stakeholders to run zkBTC full nodes on mobile phones. This technology is set to revolutionize Bitcoin-based DeFi applications, enabling secure operations such as BTC-backed lending and stablecoin issuance without centralized custodians.
One of the key advantages of BeL2 is its multi-address Bitcoin support. The layer extends compatibility to all major Bitcoin address types, including Taproot (P2TR), Native SegWit (P2WPKH), Nested SegWit (P2SH), and Legacy (P2PKH) addresses. This broader integration and usability are essential for the widespread adoption of Bitcoin in the DeFi ecosystem.
In terms of consensus mechanisms and fee models, BeL2 uses a 36-node consensus, supports SPV dynamic sensing, and distributes fees fairly among Elastos multisig, miners, and NFT stakeholders. These mechanisms ensure a balanced ecosystem incentive structure.
Elastos is also developing several features around BeL2 to improve efficiency and usability for DeFi applications. These include low-barrier arbiter collateral models via foundation endorsement, decentralized licensing integration, walletless transactions, and smart account user experiences.
By leveraging Bitcoin's robust security and combining it with enhanced layer-2 features, BeL2 aims to create a scalable, user-friendly, and secure utility layer. This layer forms a decentralized native BTC settlement network, eliminating the need for third-party confirmations.
Elastos has recently secured $20 million in funding from Rollman Management for the development of the BeL2 network. This fresh capital will be used to scale the Bitcoin-based BeL2 network, making Bitcoin more preferred for decentralized finance (DeFi) applications.
Moreover, Elastos' native token, ELA, serves as a reserve asset, governance token, transaction utility, and mining reward for the BeL2 network. This integration further strengthens the synergy between the two platforms.
As the value locked in Bitcoin continues to grow, companies are looking to capitalize on this potential for DeFi applications. With the BeL2 network, Elastos is at the forefront of this exciting development, bridging the gap between Bitcoin and the decentralized finance ecosystem.
- The BeL2 utility layer, a development by Elastos, seeks to leverage technology for transforming Bitcoin into a more suitable asset for Decentralized Finance (DeFi) by supporting multi-address Bitcoin types for broader integration in the DeFi ecosystem.
- To further capitalize on Bitcoin's potential in DeFi, Elastos is utilizing its BeL2 network, which not only aims to revolutionize Bitcoin-based DeFi applications, but also intends to make Bitcoin more preferred, thanks to the fresh $20 million funding secured from Rollman Management.
