Elastos Sets Sights on $700 Billion Bitcoin Staking Market Through Layer 2 Network
Elastos has made an exciting announcement about the launch of BeL2, a Layer 2 network built on the Bitcoin blockchain. This move aims to introduce advanced BTC transactions on the platform while capitalizing on the growing interest in decentralized finance (defi) solutions and the buzz surrounding inscriptions and spot ETFs in the BTC space. By introducing the BeL2 network, Elastos hopes to bring staking to the Bitcoin network, opening doors to a potential multi-billion dollar market. Additionally, the platform plans to offer cost-effective transactions for native decentralized applications. However, it remains unclear whether this product will integrate with the Lightning network, another Layer 2 network designed to facilitate fast and affordable BTC transactions.
Elastos also aims to pave the way for defi on the Bitcoin network by enabling smart contract deployment and establishing irreversible digital agreements between participants. This strategic move by Elastos comes at a time when interest in Bitcoin and its blockchain is surging. With BTC’s value increasing by over 150 percent since the beginning of 2023 and showing signs of a continued rally after a minor correction, users have also developed a new technology called inscriptions. Similar to NFTs on blockchains like Ethereum and Solana, inscriptions involve adding digital data to transactions. This innovative feature has accounted for 20 to 30 percent of the total transaction fee revenue generated by BTC miners this year. Additionally, inscriptions have only consumed a small portion of block space, as reported by Glassnode.
Overall, Elastos’ plan to bootstrap decentralized finance on Bitcoin aligns with the current trends and developments in the crypto industry. With the launch of the BeL2 network and the integration of defi solutions, Elastos aims to tap into the vast potential of the BTC market while providing users with enhanced transaction capabilities and cost-efficiency.
