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Vicky Sharp
Vicky Sharp

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Elastos and BEVM Partner to Unlock $1.3 Trillion in Dormant Bitcoin Value

Elastos, a blockchain ecosystem provider, has announced a strategic partnership with BEVM, a Layer 2 solution for Bitcoin, to launch a peer-to-peer (P2P) lending platform denominated in Bitcoin. This collaboration aims to unlock up to $1.3 trillion in dormant Bitcoin value by enabling users to collateralize their Bitcoin holdings.

Leveraging BeL2 for Bitcoin-Backed Loans

At the heart of this initiative is Elastos' Bitcoin Elastos Layer 2 (BeL2) protocol, launched in December 2023. BeL2 enhances Bitcoin's functionality by introducing features like staking and smart contracts directly within the Bitcoin network.

Through this partnership, Elastos and BEVM are developing a "BTC Oracle" - a real-time monitoring and analysis tool for all Bitcoin-based activities. This Oracle, powered by BeL2's unique zero-knowledge proof (ZK-proof) process, will facilitate transactions without interfering with the Bitcoin network, preserving its integrity.

By leveraging the BTC Oracle and BeL2's capabilities, the P2P lending platform will allow users to collateralize up to 80% of their Bitcoin holdings. In return, they will receive L2 credit, such as stablecoins, based on the terms defined in a Bitcoin-backed smart contract.

Unlocking Dormant Bitcoin Value

The key objective of this partnership is to unlock the vast potential of dormant Bitcoin value, estimated to be as high as $1.3 trillion. This untapped value represents Bitcoin holdings that are not actively being used for transactions or other financial activities.

By providing a seamless and secure way for users to leverage their Bitcoin as collateral, the Elastos-BEVM collaboration aims to catalyze the "Third Age of Bitcoin" - a period where native Bitcoin transactions become increasingly prevalent.

Enhancing Trust and Adoption

The timing of this partnership is significant, as it coincides with Elastos' BIT (Bitcoin; Innovation & Trust) Index, which reveals a surge in enthusiasm for Bitcoin among tech-savvy consumers in the United States.

According to the index, 63% of these consumers are either "perfectly comfortable" or "excited" about transacting in Bitcoin. Moreover, over half of the respondents use Bitcoin for various purposes, such as storing savings or hedging against inflation, with many engaging in monthly transactions.

Notably, 24% of the surveyed tech-savvy consumers trust Bitcoin more than traditional banking methods for safeguarding their savings. This growing trust in Bitcoin suggests a potential turning point in the adoption of cryptocurrencies among early adopters in the US.

Revolutionizing Finance with Bitcoin-Native Solutions

Hakan Sezikli, the Co-founder of the BEVM Foundation, emphasized the transformative potential of this partnership, stating that the BeL2 protocol "perfectly reflects what BEVM is all about; developing and supporting EVM-compatible DApps which can run in the Ethereum ecosystem to operate on Bitcoin L2."

By combining Elastos' expertise in blockchain technology and BEVM's focus on Bitcoin-native solutions, the collaboration aims to revolutionize the finance sector by providing a truly peer-to-peer, disintermediated, and anonymous lending platform powered by Bitcoin.

As the cryptocurrency landscape continues to evolve, partnerships like the one between Elastos and BEVM demonstrate the growing importance of leveraging innovative technologies to unlock the full potential of digital assets, particularly Bitcoin, and drive mainstream adoption.

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