ELA token skyrockets by 100% after Bitcoin’s layer-2 announcement
Elastos, a blockchain developer, has unveiled its latest offering called “Bitcoin Elastos Layer2” (BeL2), which aims to enhance the capabilities of the Bitcoin network using SmartWeb technology. The main focus of BeL2 is to introduce staking solutions and incorporate zero-knowledge proof technology.
Initially, the announcement received a lukewarm response from the crypto community when it was made in late November. However, after the release of a detailed whitepaper outlining the BeL2 initiative, Elastos’ token ELA experienced a significant surge. In just one day, its price skyrocketed from $1.24 to $2.56, marking a remarkable 100% increase, according to CoinGecko data.
As of now, ELA is being traded at $2.06 with a market capitalization of $44.2 million.
The goal of BeL2 is to address the key challenges faced by the Bitcoin ecosystem, including limitations in handling high transaction volumes and complex programmable contracts. By leveraging zero-knowledge proofs and BTC-powered Ethereum Virtual Machine (EVM) smart contracts, BeL2 aims to expedite transactions within the network. The whitepaper also reveals that BeL2’s governance will be overseen by the Cyber Republic’s Decentralized Autonomous Organization (DAO), reflecting a decentralized governance model.
The development of a proof-of-concept for BeL2 is expected to take approximately three months, followed by another three-month period dedicated to the decentralization of relayers. These relayers are third-party services that facilitate communication and data transactions between different blockchain networks.
Elastos, founded in 2017 by Rong Chen, a former senior software engineer at Microsoft, focuses on providing a blockchain platform for decentralized applications. The ecosystem operates with its native utility token called ELA, which is used for transactions and network security through its three-layer consensus mechanisms: auxiliary proof-of-work, proof-of-integrity, and bonded proof-of-stake.
