In a groundbreaking move poised to revolutionize the Bitcoin landscape, blockchain network Elastos has announced the introduction of BeL2, a Bitcoin layer-2 (L2) network. This strategic development is set to potentially bring billions of dollars in Bitcoin volumes, particularly from the staking tools offered on its new initiative.
BeL2 is designed to enable more sophisticated Bitcoin transactions than the base Bitcoin blockchain. Developers at Elastos stated that the BeL2 network will support features such as smart contracts and irreversible digital agreements, marking a significant departure from the limitations of the traditional Bitcoin network.
Notably, these smart contracts can be defined, managed, tracked, and modified entirely on the Bitcoin blockchain, eliminating the need for intermediaries.
One of the standout features of BeL2 is its provision for users to stake their Bitcoin holdings directly on the platform. This functionality allows users to earn yields while engaging with applications built on BeL2. Interestingly, transactional fees on the BeL2 network are anticipated to be remarkably low.
Sasha Mitchel, Head of Strategy at BeL2, expressed the significance of this development, stating, “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. She added:
“It’s always been an anomaly that Bitcoin reserves remained effectively ‘dormant’ between transactions.
BeL2: Cost-effective Transactions on Native dApps
In addition to Bitcoin staking and direct yield provision through the new project, Elastos plans to offer cost-effective transactions on native decentralized applications. The company compares its new project with Lightning Network, another layer-2 network specifically designed to facilitate fast and affordable BTC-denominated transactions. The blog post states:
“Distinguishing itself from existing solutions like the Lightning Network, BeL2 enables true staking and transaction recognition across Bitcoin and secondary networks, utilizing zero-knowledge proof technology for enhanced transaction authenticity and security.”
Jonathan Hargreaves, the Global Head of Business Development & ESG at Elastos, underscored the tangible real-world implications of BeL2. According to him, the new L2 network is positioned to empower both consumers and businesses to engage directly, facilitating transactions using Bitcoin without the intervention of intermediaries.
Elastos aims to enable smart contract deployment and irreversible digital agreements between participants, charting the decentralized finance (DeFi) course on Bitcoin. Mitchel commented on this ambitious move by stating:
“Now Bitcoin owners can put the world’s most popular, liquid, and secure digital currency to work, potentially unlocking over $700 billion in value.”
The announcement from Elastos comes at a time of heightened interest in Bitcoin, which has witnessed a remarkable 150% increase since the beginning of 2023. At the same time, users have developed technologies such as inscriptions, adding to the allure of Bitcoin in the evolving digital asset landscape.