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Elastos Introduces BeL2: Revolutionising Bitcoin’s Layer 2 Infrastructure
Elastos, a pioneer in decentralised internet solutions, is working on a significant innovation. Since its inception, Elastos has maintained a close link with Bitcoin, sharing a merge-mined history since early 2018. Now, Elastos introduces ‘Bitcoin Elastos Layer2,’ codenamed ‘BeL2,’ a Layer 2 solution for Bitcoin, signifying a significant evolution in its journey. Next week, Elastos will release the ‘Be Your Own Bank’ BeL2 whitepaper. To be the first to read it, turn on notifications on Elastos Twitter for its announcement and join the community’s Telegram group. Here is some supporting information in the lead-up!
Bitcoin and Elastos History
Elastos’ journey with Bitcoin dates back over five years, beginning when BTC.com merged-mined its first block for Elastos’ mainchain at no extra cost, earning ELA rewards. This contributed to gaining over 50% of Bitcoin’s hash power security in the subsequent years. Merge mining with Bitcoin leverages its robust and battle-tested Proof of Work infrastructure, offering unparalleled security to Elastos at a fraction of the cost. This approach not only simplifies the SmartWeb ecosystem by supporting resource-sharing but also fosters a symbiotic relationship, enhancing both security and rewards across networks. It’s Elastos’ fundamental belief that without Bitcoin’s security, no ecosystem is truly decentralised. You can learn more about Elastos’ Bitcoin-powered architecture here.
Bitcoin-secured ELA has been powering transactions across its ecosystem, from gas to staking, and it’s used yearly in its Cyber Republic DAO governance layer for election voting and as collateral for council member participants. This historical connection with Bitcoin now forms the foundation for Elastos’ new direction – leveraging its long-standing relationship to build “BeL2”, a Bitcoin Layer 2 solution aimed at making the $700billion worth value on its Layer 1 more adaptable and intelligent using Elastos technology for various applications in the digital economy.
The BeL2 Architecture
BeL2 represents an exciting move for Elastos, aligning with Bitcoin’s ethos while expanding its utility. BeL2 will augment Bitcoin’s capabilities without altering its core principles. BeL2 aims to address Bitcoin’s limitations – transaction speed, smart contract complexity, and privacy issues, by layering Elastos’ SmartWeb technology atop Bitcoin’s robust infrastructure.
- Zero-Knowledge Proofs: A zero-knowledge proof is a method for proving a fact is true to someone without disclosing any details about the fact itself. In BeL2, zero-knowledge proofs are generated from Bitcoin transactions, allowing the verification of their truthfulness by the Layer 2 network without disclosing transaction details.
- Relayer and Staking Mechanisms: Relayers are responsible for transmitting zero-knowledge proofs to BeL2 smart contracts and validating transactions from the Bitcoin network. Relayers are incentivised and regulated through a staking mechanism, ensuring network integrity and reducing the risk of malicious behaviour.
- Smart Contract Capability: Unlike Bitcoin’s original scripting language, BeL2 introduces more complex smart contract functionalities such as Ethereum Virtual Machine (EVM) logic, allowing Bitcoin users to enter with proofs and opening up Bitcoin Layer 1 to a wider range of decentralised applications. BeL2 is secured by Elastos SmartWeb’s DAO council members, the Cyber Republic, who are voted in annually by its global community using ELA, its Bitcoin-merged mined reserve currency.
Potential Use Cases
BeL2 revolutionises how value is leveraged within the Bitcoin ecosystem. For example, pledging Bitcoin on BeL2 can unlock USDT loans, usable across various platforms.
- Credit Casting Based on Bitcoin Pledges: Transforming Bitcoin on Layer 1 into a collateral asset for credit lines in Layer 2.
- Decentralised Financial Transactions: Streamlining Bitcoin swaps on Layer 1 and asset exchanges into Layer 2.
- NFT Trading and Digital Content Market: Providing a Layer 2 platform that enables secure and private trading of digital content rights, from access, and distribution to royalty, powered by Bitcoin.
Months of planning have led to an architecture plan that harnesses the strengths of both Elastos and Bitcoin. The BeL2 upcoming whitepaper, scheduled for early December, will detail the operational mechanics and timeline, including:
- 3 Months: Development of a Proof of Concept
- 3 Months: Decentralisation of Relayers
- 6 Months: Integration into “Hero” Products
The Elastos Foundation will be sponsoring BeL2. Sasha Mitchell, the CEO and Founder of Elacity and a long-standing member of the Cyber Republic Council (CRC), has been asked to lead BeL2. Working alongside him is Jon Hargreaves, known for launching platforms like Cosmos and LinkedIn, and recently backed by the Cyber Republic DAO. Alongside other ecosystem teams such as Infinity and the Guardians, their mission is ambitious yet clear – to drive market-wide utilisation of Elastos through BeL2 and ignite interest in the SmartWeb.
2024 is shaping up to be a very exciting year. Not only will we witness the release and enhancement of Elacity DRM for video, showcasing Rong Chen’s 2017 vision for the first time, but Elastos’ move to develop BeL2 represents more than a strategic shift; it’s a redefinition of Bitcoin’s capabilities using SmartWeb technologies. Next week, Elastos will release the BeL2 whitepaper and immediately begin its execution. To be among the first to read it, turn on notifications on Elastos’ Twitter for its announcement and join the community’s Telegram group.