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Elastos has obtained 20 million dollars in funding to develop BeL2, a protocol that aims to integrate DeFi services on the Bitcoin blockchain. The project intends to leverage the security and liquidity of the network to innovate the decentralized financial sector.
A new boost to decentralized finance on Bitcoin
Bitcoin and DeFi: The new frontier of Elastos
Bitcoin is considered the benchmark for cryptocurrencies due to its security and decentralization. However, unlike Ethereum, it has not been an ideal ecosystem for decentralized finance (DeFi) so far.
Projects like Elastos are trying to bridge this gap, creating solutions that make Bitcoin a more functional platform for advanced financial applications.
Elastos, a provider of decentralized blockchain infrastructure, has announced that it has raised 20 million dollars to expand BeL2, a protocol designed to serve as a utility layer on the Bitcoin network.
This financing was obtained by the investment company Rollman Management and will be used to implement new solutions for DeFi based on Bitcoin.
BeL2 was developed to offer Bitcoin users access to smart contract services without having to leave the security of the main network.
Thanks to this protocol, BTC holders will be able to collateralize their assets directly in compatible wallets and access advanced features such as minting stablecoins and peer-to-peer lending, already widely used on Ethereum.
The architecture of BeL2 allows for the integration of key elements of decentralized finance without compromising the robustness of the Bitcoin network.
The protocol takes advantage of merge mining, a process that allows miners to simultaneously extract multiple cryptocurrencies without consuming additional resources.
In this way, Elastos aims to create a self-sufficient ecosystem that benefits from the security of Bitcoin and the flexibility of smart contracts.
The importance of liquidity and security in DeFi
One of the main obstacles to the development of DeFi on Bitcoin has been the limited support for complex transactions.
Unlike Ethereum, which was built from the beginning to support smart contracts, Bitcoin has always been more focused on the function of a store of value. However, DeFi requires two fundamental elements: liquidity and security.
Bitcoin offers both of these characteristics. With a market value exceeding 2 trillion dollars, it represents the main digital asset available for decentralized finance.
Furthermore, its network is the most secure among all existing blockchain, making it an ideal foundation for the development of new financial applications.
Projects like Elastos are trying to leverage this potential to attract developers and investors in the DeFi sector on Bitcoin.
The possibility of integrating advanced financial instruments on the original blockchain could revolutionize the market, opening new opportunities for users and companies.
The blockchain industry is witnessing a growing competition among DeFi platforms, with numerous projects seeking to capitalize on the enormous amount of capital locked in Bitcoin.
Besides Elastos, other initiatives are working to make Bitcoin more accessible to DeFi applications.
An evolving ecosystem
The success of BeL2 will depend on the protocol’s ability to attract users and developers, while ensuring security and scalability.
The possibility of minting stablecoin, accessing decentralized lending tools, and interacting with smart contracts could make Bitcoin a leading player in DeFi, on par with Ethereum.
In other words, Elastos has taken a significant step towards expanding DeFi on Bitcoin, raising 20 million dollars for the development of BeL2.
The protocol aims to create an infrastructure that allows users to leverage the security of Bitcoin without giving up the flexibility of decentralized finance.
If it is successful, this project could mark a turning point for the entire sector, paving the way for a new era of DeFi based on the most secure blockchain.
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