Quick take:
- Elastos is building BeL2, a utility layer developed to turn Bitcoin into a more preferred blockchain for DeFi apps.
- BeL2 allows stakeholders to run zkBTC full nodes on mobile phones, the company states on its website.
- This eliminates the need for third-party confirmations, thus forming a decentralised native BTC settlement network.
Elastos has announced $20 million in funding from private investment company Rollman Management, according to a CoinDesk report. The fresh capital will go towards scaling the Bitcoin-based protocol’s BeL2 network.
Described as a decentralised clearing network, Bel2 is a utility layer being developed to turn Bitcoin into a more preferred blockchain for decentralised finance (DeFi) apps.
On its website, the company states that the network allows stakeholders to run zkBTC full nodes on mobile phones. This eliminates the need for third-party confirmations and forms a decentralised native BTC settlement network.
According to Elastos, BeL2 enables the transfer of Zero-Knowledge Proofs, rather than assets, across chains, allowing collateralized Bitcoin to participate in smart contracts without leaving the main network.
“Your BTC acts as collateral, remaining non-custodial and non-liquidatable before maturity,” the company writes on the BeL2 website. This allows users to mortgage BTC or borrow USDC. When borrowers repay, lenders receive USDC and interest. In the event a borrower defaults, the lender gets more BTC.
This fundraising comes as Bitcoin is rapidly emerging as a major player in the decentralised finance ecosystem. Companies are looking to capitalise on the $2 trillion worth of BTC stored on the blockchain.
Elastos’ native token ELA, which is merged-mined with Bitcoin serves as a reserve asset, governance token, transaction utility, and mining reward for the network.
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