Elastos, a blockchain network, is launching BeL2, a new network for Bitcoin. This could bring in a lot of money from staking tools on the platform.
BeL2 will make it possible to do more complicated bitcoin transactions than the regular Bitcoin system. This includes things like smart contracts and digital agreements that cannot be changed, according to Elastos developers speaking to CoinDesk. Smart contracts are agreements that can be created, controlled, and changed on Bitcoin without a middleman.
Users can put their bitcoin holdings on the network and earn rewards while using applications on BeL2. The fees for transactions are expected to be very low or even gone, compared to the $10 average for Bitcoin transactions as of Tuesday.
“BeL2 coming means Bitcoin is now smart. This shows that Bitcoin holders can stake their assets and earn interest directly,” said Sasha Mitchel, head of strategy at BeL2 in a note to CoinDesk. “It has always been strange that Bitcoin reserves were not being used between transactions. ”
Bitcoin layer-2 projects have done really well this year. Tokens of projects like Stacks (STX) have gone up by as much as 300%. These networks have a record that lets people save information separately from the main Bitcoin system. This lets developers create apps on the platform, like they can with Ethereum and Solana.