The financial landscape (DEFI) is evolving, and bitcoin -oriented solutions are gaining momentum. BTCFI is a resulting sector that transforms Bitcoin (BTC) from a passive value warehouse into actively used assets in DEFI.
The recent Cointelegraph Research and Elastos report delves into how Bitcoin security helps create lean, scalable financial ecosystems.
The expanding role of Bitcoin in DEFI
Defi was traditionally dominated by Ethereum, who Accounts For over 50% of the total value of the sector of $ 175 billion (TVL). However, the robust security and smoothness of Bitcoin make it an attractive basis for DEFI innovation.
Despite the strengths of the lack of native knowledgeable functions of the Bitcoin contract, he historically constrained its role in decentralized finances. The appearance of bitcoin -oriented def solutions is aimed at filling this gap and enabling bitcoins owners of participation in loans, issuing Stablecoin and transition interoperability without the risk of freedom.
Elastos: Operate of Bitcoin security for decentralized applications
Elastos stands out as one of the leading players in this evolution, including combined mining, a method that allows secondary blockchains to inherit the security of bitcoins.
Because about 50% of the total 800 eh/s bitcoin Hashrate Protects elastos, the platform is set as one of the most computing networks related to bitcoins. This ensures that financial applications built on elasto maintain a level of security similar to Bitcoin itself.
At the root of the Elastos infrastructure Malleable consensus Model, a hybrid mechanism that integrates auxiliary proof of work, related evidence and proof of integrity.
This multi -layered approach enables elasto to provide unthreatening, scalable financial services and escalate its appeal to the DEFI application. . Elastos Intelligent ChainVirtual Sydechain compatible with Ethereum machines facilitates the development of decentralized applications (DAPP) to ensure trouble -free integration with a wider DEFI ecosystem.
Bel2: BTCFI breakthrough
The main attraction of the report is Bel2 Network arbiter, designed to introduce bitcoin transactions to DEFI without trust. Bel2 uses evidence of zero knowledge (ZKPS) to verify bitcoin transactions in elastos and ethereum networks without relying on centralized carers.
This mechanism allows the utilize of bitcoins in the DEFI protocol without synthetic assets or intermediaries and deals with a long -term challenge in BTCFI.
This model has already aroused institutional interest. Some initiative Harvard University, headed by students and graduates, is developed by Stablecoin supported by BTC with BEL2. The platform also supports decentralized loans that allows Bitcoin owners to secure loans in Stablecoin while maintaining exposure to recognition of BTC prices.
Market position elastos and future potential
The BTCFI ELASTOS approach competes with established Bitcoin DEFI solutions, such as stacks and pads. Piles utilize primarily Bitcoin, and Rootstock focuses on EVM compatibility, while Elastos stands out by combining high safety (through combined mining) and interoperability of commas. This positions Elastos as a powerful player in the BTCFI landscape.
However, the report also defines some challenges, such as regulatory uncertainty, ecosystem awareness and some technical complexities. Despite these obstacles, the combination of Bitcoin security, without the trust of knowledgeable contract and institutional support, provides potential growth in the evolving BTCFI sector.
Challenges and possibilities in Bitcoin DEFI adoption
When the blockchain industry changes towards the interoperability of hypertrophy and decentralized management, Bitcoins are expected to play an essential role in transforming both established and decentralized finances.
Elastos innovations, especially through Bel2 and its decentralized (DID) framework, are aimed at increasing the safety, scalability and institutional reception of Bitcoins in DEFI.
With bitcoins secured finances prohibited To develop significantly, ELASTOS infrastructure is a solid basis for the next wave of decentralized financial conclusions.
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