Elastos Partners with BEVM and US BIT Index
Hersham, United Kindom, June 28th, 2024, Chainwire
Elastos Partners with BEVM for Bitcoin Native Peer-to-Peer Loans. Partnership aims to unlock up to $1.3 trillion of dormant Layer 1 Value, as US consumers get excited about the 3rd Age of Bitcoin
Elastos, the SmartWeb ecosystem provider, has announced a partnership with the L2 provider, BEVM, to develop a peer-to-peer Bitcoin-denominated loan 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 the latest Elastos’ BIT (Bitcoin; Innovation & Trust) Index suggesting more than two-thirds of US tech-savvy consumers are comfortable using Bitcoin.
Collateralizing 80% of assets while the Bitcoin Layer is untouched
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 loan product will allow users to collateralize up to 80% of their assets in return for L2 credit (stable coins, for instance) based on terms defined in a Bitcoin-assured smart contract. The integrity of the currency is assured by BeL2’s unique ZK-proof process which means the Bitcoin Layer is untouched as the process can be completed without bridging, wrapping or otherwise interfering with the Bitcoin Layer. This maintains the integrity of the currency and avoids network congestion and additional fees that would otherwise result. This approach enables Elastos and BEVM to deliver a genuinely peer-to-peer loan 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 all about; developing and supporting EVM-compatible DApps which can run in the Ethereum ecosystem to operate on Bitcoin L2. The loan offering is the perfect illustration of how such services could revolutionize the finance sector,” Hakan Sezikli, Co-founder of the BEVM Foundation.
Enabling Insight via BTC Oracle
Launched in December ’23, the Bitcoin Elastos Layer2 (BeL2) protocol is a Layer 2 solution for Bitcoin, enabling multiple functionalities such as staking and smart contracts to be denominated directly in the World’s most popular digital currency. BEVM will be collaborating with the Elastos’ BeL2 protocol to deliver a BTC Oracle to monitor and analyze all Bitcoin-based activity in real time. As the BeL2 protocol enables 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 insight into how the currency is being used.
US tech-savvy consumers trust Bitcoin
This partnership comes as new data from the Elastos’ BIT (Bitcoin; Innovation & Trust) Index indicates growing excitement among US tech-savvy consumers for Bitcoin. 63% of ‘tech savvy’ consumers feel either ‘perfectly comfortable’ or, even, ‘excited’ about transacting in Bitcoin and over half respondents in the US are using Bitcoin at least once a month. Among the use cases:
- 44% have already used Bitcoin to store savings
- 42% have used the digital currency to purchase online
- 34% to send/receive money from abroad
- 23% turn to it to mitigate the effects of inflation
- 15% use it to reduce their banking costs
Respondents to the survey also suggest they trust Bitcoin as much as online banking or cash to protect savings:
- 24% US respondents would place most trust in Bitcoin
- Compared with 25% who place most trust in online banks
- 23% who place their trust in cash
“What this data shows is that we’re reaching an inflection point in the understanding and embrace of crypto-currencies among early adopters in the US that reflects the global trend towards the Third Age of Bitcoin,” said Rong Chen, co-founder, Elastos. “We are on the verge of Bitcoin delivering a new era commerce, where users are in charge of their data and are no longer beholden to the Web 2 tech giants. This data shows there is work to do to encourage broader adoption in the US, but at Elastos it is our mission to develop technologies that will make it easier to interact and transact with Bitcoin.”
The BIT Barometer also revealed sizable constituencies uncomfortable with the data sharing requirements of Web2. Globally and in the US, one in three (31%) described themselves as “uneasy” or “completely uncomfortable” about the requirement to share personal information to message or transact on web2 social media.
About Elastos
Elastos is a public blockchain project that integrates blockchain technology with a suite of reimagined platform components to produce a modern Internet infrastructure that provides intrinsic protection for privacy and digital asset ownership. The mission is to build accessible, open-source services for the world, so developers can build an internet where individuals own and control their data.
The Elastos SmartWeb platform enables organizations to recalibrate how the Internet works for them to better control their own data.
https://www.linkedin.com/company/elastosinfo/
Elastos’ BIT (Bitcoin; Innovation & Trust) Index Methodology
The data was compiled from over 1,400 self-defined ‘tech savvy’ respondents from 7 countries across the globe. The research was compiled from online interviews conducted in Brazil, Germany, Nigeria, South Korea, UAE, UK, and US. The interviews were completed by a third party, registered market research company and completed between 30 March and 04 April ’24.
About BEVM
BEVM is the first fully decentralized EVM-compatible Bitcoin L2 that uses BTC as Gas. It allows all DApps which can run in the Ethereum ecosystem to operate on Bitcoin L2.
