Elastos Collaborates With BEVM to Introduce Bitcoin P2P Loans Aiming to Unlock 13 Trillion in Dormant Value

Elastos Teams Up With BEVM to Introduce Bitcoin P2P Loans, Aiming for $1.3T in Unused Value


By Harvey Hunter
Last updated:
June 28, 2024, 13:30 EDT
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2 min read


Elastos, the provider of the SmartWeb ecosystem, has announced a partnership with Layer 2 provider BEVM to create a peer-to-peer loan offering using Bitcoin, as stated in a press release issued on June 28th. This collaboration is aimed at unlocking a potential $1.3 trillion in dormant Layer 1 value and is anticipating the “Third Age of Bitcoin,” where users will increasingly conduct transactions using native Bitcoin, further developing the flourishing Bitcoin ecosystem.
The collaboration with BEVM to develop this Bitcoin Native loan product enables users to use up to 80% of their assets as collateral. In return, they receive L2 credit, such as stablecoins, based on terms in a Bitcoin-assured smart contract. To facilitate this, let’s explore the significant role of BeL2.
What Role Does BeL2 Play?
Launched in December 2023, the Bitcoin Elastos Layer 2 (BeL2) protocol enhances Bitcoin’s capabilities. This Layer 2 solution introduces functionalities such as staking and smart contracts directly within the Bitcoin network.
At the core of this partnership is the development of a BTC Oracle, a collaboration between BEVM and Elastos’ BeL2 protocol. This Oracle will provide real-time monitoring and analysis of all Bitcoin-based activity.
From staking to complex multi-party agreements facilitated by smart contracts, the BTC Oracle, powered by BeL2, will offer valuable insights into Bitcoin’s usage patterns, empowering users to manage relationships through the currency.
Elastos utilizes BeL2’s unique ZK-proof process to maintain the integrity of Bitcoin. This process enables transactions without requiring bridging, wrapping, or interfering with the Bitcoin Layer, thus preserving its core functionality.
By bypassing network congestion and eliminating unnecessary fees, Elastos and BEVM can offer a truly peer-to-peer loan product characterized by disintermediation and anonymity. Only in the event of a dispute between parties would third-party verification, along with its associated costs and potential delays, become necessary.
Hakan Sezikli, Co-founder of the BEVM Foundation, emphasized the transformative potential of this partnership.
US Tech-Savvy Consumers Trust Bitcoin
This collaboration aligns with Elastos’ BIT (Bitcoin; Innovation & Trust) Index, which shows a surge in enthusiasm for Bitcoin among US tech-savvy consumers. The index indicates that 63% of tech-savvy consumers are either “perfectly comfortable” or “excited” about transacting in Bitcoin.
These consumers use Bitcoin for various purposes, from storing savings to hedging against inflation, with over half of US respondents engaging in Bitcoin transactions at least monthly. Additionally, 24% trust Bitcoin even more than traditional methods like online banking or cash for safeguarding their savings. This growing trust signifies a potential turning point in US early adopters’ understanding and adoption of cryptocurrencies.
Chen envisions a future where users control their data, liberating themselves from the grip of Web 2 giants. He stated:
As cryptocurrency gains prominence, it has become a central topic in the upcoming US election, dividing opinions within both political and cryptocurrency communities.