Elastos aims to use BeL2 to allow users to stake their Bitcoin holdings directly on the service.
Blockchain network Elastos may have devised a strategy to take advantage of the current high demand for Bitcoin (BTC) staking on its platform. This follows after it launched BeL2, a Bitcoin layer-2 network, in a supposed effort to retain the billions of dollars in BTC volumes that currently flow from the staking tools it offers.
According to Elastos developers, BeL2 is an upgrade to the base Bitcoin blockchain. And that is especially true in the way that it permits more sophisticated Bitcoin transactions such as smart contracts and irreversible digital agreements.
Meanwhile, Sasha Mitchel, head of strategy at BeL2, has hailed the new launch. Mitchel noted that it has always been odd that Bitcoin reserves are usually ‘dormant’ during transactions. “However, all that is about to change given that the arrival of BeL2 is expected to make Bitcoin smart,” he added.
With the BeL2, smart contracts can be defined, managed, tracked, and even entirely modified on Bitcoin without the need for an intermediary.
Elastos Eyes Boosting Investors’ Interest
Elastos aims to use BeL2 to allow users to stake their Bitcoin holdings directly on the service. By doing that, users get to enjoy their massive yields and also interact with other applications built on BeL2.
Transactional fee is another area of focus for Elastos. The network will be hoping that BeL2 helps it reduce the fees to the barest minimum, or get them completely removed. Whereas, Bitcoin transactions, as of Tuesday, still cost $10 on average.
It is worth mentioning that Bitcoin layer-2 projects have thrived so far in 2023. So much so, that tokens of some projects have seen unprecedented gains in the year. One of those is Stacks (STX) saw a parabolic price increase of over 300%.
To this end, therefore, the Elastos network is also seeking to toe the same path. It aims to bring much-improved offerings to its users, and also improve its fortunes on all sides.
Bitcoin layer-2 projects share a ledger that allows users to store data outside the main Bitcoin blockchain. This permission also extends to developers who are able to build apps on the platform in the same way that they can on Ethereum and Solana.
Interestingly, ELA, the native token of the Elastos network has reacted to the news of the layer 2 network launch. ELA price has surged over 84% in the past 24 hours to reach $2.34, per CounMarketCap data.
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