Blockchain developer Elastos introduced a Bitcoin layer-2 network, aiming to attract liquidity through its staking tools.
According to a blog post, Elastos‘ new solution called “Bitcoin Elastos Layer2” abbreviated as BeL2, intends to leverage SmartWeb technology to enhance the capabilities of the Bitcoin network. The focus is on bringing staking solutions and incorporating zero-knowledge proof technology.
Despite the announcement being made in late November, the response from the crypto community was initially muted. However, following the release of a whitepaper by the development team outlining the details of the BeL2 initiative, Elastos’ token ELA experienced a noteworthy surge. Its price catapulted from $1.24 to $2.56, representing a remarkable 100% increase in a single day, as per CoinGecko data.
As of press time, ELA is trading at $2.06 with a market capitalization of $44.2 million.
With BeL2, Elastos aims to tackle key challenges faced by the Bitcoin ecosystem, such as limitations in handling high transaction volumes and complex programmable contracts. By utilizing zero-knowledge proofs and BTC-powered Ethereum Virtual Machine (EVM) smart contracts, BeL2 is anticipated to accelerate transactions within the network. The whitepaper outlines that BeL2’s governance will be under the Cyber Republic’s Decentralized Autonomous Organization (DAO), embodying a decentralized governance model.
The development of a proof-of-concept is expected to span approximately three months, followed by an additional three-month period dedicated to the decentralization of relayers, which are third-party services facilitating communication and data transactions between different blockchain networks.
Founded in 2017 by Rong Chen, a former senior software engineer at Microsoft, Elastos focuses on providing a blockchain platform for decentralized applications. The ecosystem has its native utility token called ELA, which is used for transactions and securing the network through its three-layer consensus mechanisms: auxiliary proof-of-work, proof-of-integrity, and bonded proof-of-stake.
