Elastos Teams Up With BEVM for Introduction of Bitcoin P2P Lending, Aiming at Unleashing $1.3 Trillion in Inactive Value
In a recent announcement on June 28th, Elastos, the provider of the SmartWeb ecosystem, disclosed a collaboration with Layer 2 provider BEVM to create a peer-to-peer lending service utilizing Bitcoin as the currency.
This partnership aims to tap into a potential $1.3 trillion of stagnant value at Layer 1, foreseeing the emergence of the “Third Age of Bitcoin,” in which users will progressively engage in transactions using native Bitcoin, further enriching the flourishing Bitcoin ecosystem.
By teaming up with BEVM to craft this Bitcoin Native lending product, users can pledge up to 80% of their assets as collateral. In exchange, they will receive L2 credit, akin to stablecoins, based on conditions outlined in a Bitcoin-secured smart contract. To delve into this further, it’s crucial to understand the significant role of BeL2.
The Importance of BeL2
Introduced in December 2023, the Bitcoin Elastos Layer 2 (BeL2) protocol enhances the capabilities of Bitcoin. This Layer 2 solution brings features such as staking and smart contracts directly within the Bitcoin network.
At the core of this collaboration is the development of a BTC Oracle, a joint effort between BEVM and Elastos’ BeL2 protocol. This Oracle will deliver real-time monitoring and analysis of all Bitcoin-related activities.
From staking to complex multi-party agreements enabled by smart contracts, the BTC Oracle powered by BeL2 will provide valuable insights into the utilization patterns of Bitcoin, empowering users to navigate relationships through the currency.
Elastos utilizes BeL2’s unique ZK-proof process to uphold the integrity of Bitcoin. This process facilitates transactions without the need for bridging, wrapping, or disrupting the Bitcoin Layer, thereby preserving its fundamental functionality.
By bypassing network congestion and eliminating unnecessary fees, Elastos and BEVM are poised to introduce a genuinely peer-to-peer lending product characterized by disintermediation and anonymity. In instances of disagreements between parties, third-party verification may be required, albeit with associated costs and potential delays.
Hakan Sezikli, Co-founder of the BEVM Foundation, highlighted the transformative potential of this partnership:
Tech-Savvy US Consumers Embrace Bitcoin
This partnership coincides with the Elastos’ BIT (Bitcoin; Innovation & Trust) Index, pointing to a surge in enthusiasm for Bitcoin among tech-savvy consumers in the US.
The index reveals that 63% of tech-savvy consumers feel “perfectly comfortable” or “excited” about engaging in Bitcoin transactions.
These consumers use Bitcoin for diverse purposes, ranging from savings storage to hedging against inflation, with more than half of US respondents conducting Bitcoin transactions on a monthly basis.
Furthermore, 24% place greater trust in Bitcoin over traditional methods like online banking or cash for safeguarding their savings. This growing trust signifies a potential shift in the understanding and adoption of cryptocurrencies among early adopters in the US.
Chen envisions a future where users have control over their data, breaking free from the influence of Web 2 giants. He remarked:
As cryptocurrency gains prominence, it has become a focal point in the upcoming US election, sparking debates within political and cryptocurrency communities.