Hersham, UK, June 28, 2024, Chainwire
Elastos partners with BEVM for native peer-to-peer lending. The partnership aims to unlock up to $1.3 trillion of dormant Layer 1 value as American consumers get excited about the third era of Bitcoin.
SmartWeb ecosystem provider Elastos has announced a partnership with L2 provider BEVM to develop a Bitcoin-denominated peer-to-peer lending offering around the former's BeL2 protocol. Together, the companies believe they can unlock up to $1.3 trillion of dormant Layer 1 Bitcoin value, which is supported by data from Elastos' latest BIT (Bitcoin; Innovation and Trust) index that suggests more than two-thirds of tech-savvy American consumers are comfortable using Bitcoin.
Collateralize 80% of assets while Bitcoin layer remains intact
Elastos believes momentum is building around the Third Age of Bitcoin, where users will be able to transact using native Bitcoin. Partnering with BEVM to develop this Bitcoin-native lending product will allow users to collateralize up to 80% of their assets in exchange for L2 credit (stablecoins, for example) based on terms defined in a secured smart contract. for Bitcoin. The integrity of the coin is ensured by BeL2's unique ZK-proof process, meaning the Bitcoin layer is not affected as the process can be completed without bridging, wrapping or otherwise interfering with the Bitcoin layer. Bitcoin. This maintains the integrity of the currency and avoids network congestion and additional fees that would otherwise result. This approach allows Elastos and BEVM to offer a genuinely peer-to-peer lending product, which is completely disintermediated and anonymous. Verification (potentially through third party services) and resulting costs/delays would only be required in the event of a dispute between the two parties.
“The BeL2 protocol perfectly reflects what BEVM is looking for: to develop and support EVM-compatible DApps that can run in the ecosystem to operate in Bitcoin L2. The loan offering is the perfect illustration of how these services could revolutionize the financial sector,” said Hakan Sezikli, co-founder of the BEVM Foundation.
Enabling information through BTC Oracle (NYSE:)
Launched in December 2023, the Bitcoin Elastos Layer2 (BeL2) protocol is a Layer 2 solution for Bitcoin, allowing multiple functionalities such as staking and smart contracts to be denominated directly in the world's most popular digital currency. BEVM will collaborate with Elastos' BeL2 protocol to offer a BTC oracle to monitor and analyze all Bitcoin-based activity in real-time. As the BeL2 protocol allows Bitcoin users to manage any relationship through the currency, from staking ('interest') to complex multi-party agreements through smart contracts, the BTC oracle will potentially become a vital source of information about how the currency is used.
Tech-savvy American consumers trust Bitcoin
This partnership comes as new data from Elastos' BIT (Bitcoin; Innovation and Trust) index indicates growing enthusiasm among tech-savvy American consumers for Bitcoin. 63% of “tech-savvy” consumers are “perfectly comfortable” or even “excited” about transacting in Bitcoin and more than half of those surveyed in the US use Bitcoin at least once a year. month. Among the use cases:
- 44% have already used Bitcoin to store savings
- 42% have used digital currency to shop online
- 34% to send/receive money from abroad
- 23% use it to mitigate the effects of inflation
- 15% use it to reduce their banking costs
Respondents also suggest they trust Bitcoin as much as online banking or cash to protect their savings:
- 24% of US respondents would trust Bitcoin more
- Compared to 25% who trust online banks more
- 23% who trust cash
“What this data shows is that we are reaching a tipping point in the understanding and acceptance of cryptocurrencies among early adopters in the US, mirroring the global trend towards the Third Age of Bitcoin,” said Rong Chen, co-founder of Elastos. “We are on the cusp of Bitcoin providing a new era of commerce, where users are in charge of their data and no longer beholden to Web 2 tech giants. This data shows there is work to be done to foster broader adoption in the US, but at Elastos our mission is to develop technologies that make it easier to interact and transact with Bitcoin.”
The BIT Barometer also revealed that a large number of voters were uncomfortable with Web2 data-sharing requirements. Globally and in the US, one in three (31%) described themselves as “uneasy” or “completely uncomfortable” with the requirement to share personal information to send messages or carry out transactions on Web2 social networks.
About Elastos
Elastos is a public blockchain project that integrates blockchain technology with a set of redesigned platform components to produce a modern Internet infrastructure that provides intrinsic protection for privacy and ownership of digital assets. The mission is to create accessible, open source services for everyone, so that developers can create an Internet where people own and control their data.
The Elastos SmartWeb platform enables organizations to recalibrate how the Internet works so they can better control their own data.
Elastos BIT (Bitcoin; Innovation and Trust) Index Methodology
The data was compiled from more than 1,400 self-defined “tech savvy” respondents from 7 countries around the world. The research was compiled from online interviews conducted in Brazil, Germany, Nigeria, South Korea, the United Arab Emirates, the United Kingdom, and the United States. Interviews were conducted by a third-party, registered market research company and were completed between March 30 and April 4, 2024.
About BEVM
BEVM is the first Bitcoin L2-compatible decentralized EVM that uses BTC as gas. It allows all DApps that can run on the Ethereum ecosystem to operate on Bitcoin L2.
www.bevm.io
ContactMedia ContactRoger DarashahElastos[email protected]
This article was originally published on Chainwire.
