Cointelegraph and Elastos research explores how Bitcoin's security helps create trustless financial ecosystems.
Bitcoin's Role in DeFi
Traditionally, Ethereum has dominated the DeFi sector, accounting for over 50% of the total $175 billion total value locked (TVL). However, Bitcoin's strong security and liquidity make it an attractive foundation for DeFi innovation. The lack of native smart contract functionality has historically limited Bitcoin's role in DeFi applications, but new solutions are bridging this gap.
Elastos and Bitcoin Security
Elastos stands out by utilizing merged mining allowing secondary blockchains to inherit Bitcoin's security. With about 50% of Bitcoin's total hashrate securing Elastos, it positions itself as one of the most robust Bitcoin-linked platforms. Elastos' infrastructure is based on the Elastic Consensus, a hybrid model integrating multiple consensus mechanisms.
BeL2 Network Solutions
A major highlight is the BeL2 Arbiter Network designed for trustless Bitcoin transactions in DeFi. BeL2 uses zero-knowledge proofs to verify transactions, enabling Bitcoin usage in DeFi without synthetic assets or intermediaries.
Elastos' technologies aim to enhance the security, scalability, and institutional adoption of Bitcoin in DeFi. With Bitcoin-secured fintech expected to grow significantly, Elastos' infrastructure provides a solid foundation for the next generation of financial applications.
