“BeL2” implements smart contracts
Blockchain technology company Elastos today announced the launch of BeL2, a Bitcoin layer 2 (L2) network that enables the development and management of smart contracts in the cryptocurrency Bitcoin (BTC). Announced.
It is said that staking with Bitcoin will also be possible.
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Sasha Mitchell, Head of Strategy and Operations at BeL2, said:
With the launch of BeL2, Bitcoin owners will be able to take advantage of the world’s most popular, liquid and secure virtual currency. It also has the potential to unlock more than 100 trillion yen ($700 billion) in value.
Erastos also explained that BeL2 addresses some of the capacity and feature limitations that have prevented the Bitcoin ecosystem from becoming truly popular.
BeL2 includes, among other things, smart contracts that mediate digital contracts through blockchain technology. According to Erastos, its smart contracts can be tracked, changed and modified with complete integrity, without the need for third-party intermediaries.
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What is Layer 2 (L2)?
This refers to the “second layer” blockchain. Writing all transaction history to the main chain increases the load, leading to a decrease in processing speed and a rise in network fees. Therefore, by recording part of the transaction history on an off-chain or side chain, it can be expected to reduce the load on the main chain and improve processing speed.
▶️Virtual currency glossary
Staking function also available
Erastos says it will also enable staking functionality using Bitcoin.
It states that users may be able to earn staking yield by depositing their Bitcoin holdings on the BeL2 network. He also said that transaction fees could be significantly lower, or even zero, compared to the current average of about 1,400 yen ($10) per transaction.
The rise of Stacks and Ordinals
The Lightning Network is known as Bitcoin’s Layer 2, but it primarily improves scalability in payment processing and does not introduce smart contract functionality.
connection: What is the “Lightning Network” that even beginners can understand? | Explaining the characteristics and mechanism
An existing project to introduce smart contracts to Bitcoin is Stacks (STX), an open source network for decentralized applications and smart contracts.
Users can mine STX tokens by transferring Bitcoin to Stax.
connection:Bitcoin Layer 2 “Stacks (STX)” has soared approximately 6 times since the beginning of the year
Another project that has emerged is Ordinals, which enables the issuance of NFTs (non-fungible tokens) on the Bitcoin blockchain.
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