Elastos Partners with BEVM for Bitcoin P2P Loans, Aiming at $1.3 Trillion in Dormant Value

Elastos, the SmartWeb ecosystem provider, announced a partnership with Layer 2 provider BEVM on June 28th to create a peer-to-peer loan offering in Bitcoin. This initiative aims to unlock $1.3 trillion in dormant Layer 1 value, marking the “Third Age of Bitcoin” where transactions increasingly use native Bitcoin.

By partnering with BEVM, Elastos enables users to collateralize up to 80% of their assets and receive L2 credit, such as stablecoins, through Bitcoin-assured smart contracts. A key component of this system is the BeL2 protocol.

Role of BeL2

Launched in December 2023, the Bitcoin Elastos Layer 2 (BeL2) protocol enhances Bitcoin’s functionality with staking and smart contracts. This partnership focuses on developing a BTC Oracle to provide real-time analysis of Bitcoin activities, from staking to complex multi-party agreements.

BeL2 uses a unique ZK-proof process to maintain Bitcoin’s integrity, facilitating transactions without bridging or wrapping. This approach avoids network congestion and eliminates unnecessary fees, promoting true peer-to-peer loans with disintermediation and anonymity. Third-party verification is only required in case of disputes, avoiding delays and costs otherwise.

Hakan Sezikli, Co-founder of the BEVM Foundation, highlighted the partnership’s potential: “The BeL2 protocol perfectly reflects BEVM’s mission of developing EVM-compatible DApps for Bitcoin L2. This loan offering could revolutionize finance.”

US Tech-Savvy Consumers Trust Bitcoin

This collaboration aligns with Elastos’ BIT (Bitcoin; Innovation & Trust) Index, showing growing enthusiasm for Bitcoin among US tech-savvy consumers. The index reveals that 63% of these consumers are comfortable or excited about transacting in Bitcoin. Over half use Bitcoin for various purposes, from saving to hedging against inflation, with many engaging in monthly transactions. Additionally, 24% trust Bitcoin more than traditional banking methods for savings security.

Chen envisions a future where users control their data, free from Web 2 giants. He stated, “Elastos is committed to developing technologies that simplify Bitcoin interaction and transactions.”

As cryptocurrency becomes central in the upcoming US election, it continues to polarize opinions within political and crypto communities.