BeL2 head describes revolutionary potential of bitcoin innovation
In an era where technology and finance are rapidly converging, BeL2 is working to innovative within the Bitcoin ecosystem. Sasha Mitchell, the head of BeL2 and founder of Elacity, recently shared the insights he's gained from the work with Zack Guzman during an interview with Roundtable on TheStreet.
Guzman kicked off the conversation by highlighting the shifting focus in Bitcoin applications and use cases.
“You guys are building in one of the hottest spaces in crypto this year,” Guzman noted, setting the stage for Mitchell to delve into the specifics of BeL2.
Mitchell explained that BeL2 stands for "Bitcoin Elastos Layer 2," a protocol designed to leverage the unparalleled security of bitcoin miners.
“Elastos is merged mined with Bitcoin, meaning that 50% of Bitcoin's miners secure Elastos,” Mitchell said, emphasizing the security this provides.
BeL2's mission revolves around enhancing the Bitcoin ecosystem by enabling secure and participatory digital environments.
Mitchell noted the importance of this shift, stating, “We want to create inclusive markets where we can actually participate in this digital economy.”
By using Bitcoin without bridging to other ecosystems, BeL2 is designed to offer a decentralized financial system that facilitates smart contract execution while preserving Bitcoin’s financial independence.
The discussion then turned to the parallels between BeL2 and Ethereum’s Layer 2 scaling solutions. Guzman pointed out that Ethereum is also focusing on scaling existing capabilities. Mitchell responded by highlighting bitcoin's unique position as a commodity and a symbol of financial independence.
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“Bitcoin is about financial independence,” he stated, adding that BeL2’s integration of Bitcoin technology with digital rights management creates a comprehensive system for managing finance and rights collaboratively.
One of BeL2’s most exciting innovations is the ability for users to generate their own stablecoins using bitcoin. This approach allows users to collateralize their bitcoin and issue algorithmic stablecoins on a Layer 2 network.
“This is really exciting to me,” Mitchell shared, underscoring the significance of a decentralized and secure method for managing digital assets.
Mitchell also discussed the decentralized lending and borrowing systems that BeL2 supports. By leveraging bitcoin holdings, users can take out loans on a decentralized platform, eliminating the need for centralized intermediaries. This not only enhances financial flexibility but also mitigates risks associated with centralized systems, as past failures like that of the Celsius network have shown.
A key advantage of BeL2’s protocol is its ability to reduce transaction fees. By conducting transactions on the Bitcoin network that create zero-knowledge proofs, BeL2 ensures privacy and security while minimizing costs. This method allows for efficient use of Bitcoin’s network and enables smart contract execution on a Layer 2 platform.
Guzman asked Mitchell about the evolution of the Bitcoin community’s attitude towards projects like BeL2. Mitchell acknowledged the divide but emphasized the overall benefits of BeL2’s approach.
“We're not changing Bitcoin,” he clarified, “We're using what's available today to allow these new systems to exist on top.”
This strategy not only enhances miner security but also introduces new financial services that align with Bitcoin’s core principles of decentralization and financial independence.
As the conversation drew to a close, Guzman sought Mitchell’s predictions for Bitcoin’s future. Mitchell expressed optimism, predicting significant growth driven by institutional interest and geopolitical developments. He highlighted the potential for countries to adopt bitcoin as a reserve asset, citing El Salvador as an example.
“There's a huge first-mover advantage,” Mitchell suggested, advocating for nations to diversify their assets with bitcoin reserves.
