The decentralized financial scene (DEFI) is constantly changing, and bitcoin-centric solutions are gaining momentum. BTCFI is an emerging sector that changes in Bitcoin (Btc) from a passive value store to an actively used defi -owned.
A new report of Cointelegraph research And Elastos reflects how Bitcoin’s security helps to create distrustful, measured financial ecosystems.
Bitcoin’s expansion of the Defi
Defi is traditionally dominated by Ethereum, which Accounts For more than 50% of the total $ 175 billion total amount locked (TVL). However, Bitcoin’s strong security and liquidity makes it a attractive -attractive foundation for Defi innovation.
Despite its strengths, the lack of bitcoin of the native intelligent operation of the contract has a history of limited role in decentralized finances. The emergence of Bitcoin-Centric Defi solutions This space is intended to bridge and enable bitcoin holders to participate in lending, stablecoin issuance and crosschain interoperability without care risks.
ELUPAST: SHOP OF BITCOIN SECURITY FOR DECEMENTALIZED APPLICATIONS
Elawapos stands as one of the leading players in this evolution by incorporating combined -with mining, a technique that allows the second blockchain to inherit the security of Bitcoin.
Since approximately 50% of the total 800 eh/s Hashrate Secures Elawos, the platform is positioned as one of the most computationally stable networks associated with Bitcoin. This ensures that financial applications developed in Elastos maintain a level of security similar to Bitcoin itself.
In the main infrastructure of elapos is its its Elastic consensus Model, a hybrid mechanism that includes auxiliary proof-of-work, bonding proof-of-stakes, and proof-of-integrity.
This multi-layered approach enables Elastos to provide safe, measured financial services and enhances its appeal for Defi applications. The ELASPAY SMART CHAIN.
Bel2: A breakthrough for BTCFI
A major highlight of the report is the Bel2 Arbiter Network, which is designed to bring unreliable bitcoin transactions to Defi. Bel2 uses proofs that are zero-knowledge (ZKP) to verify Bitcoin transactions on Elipper and Ethereum networks without relying on centralized custodians.
This mechanism gives Bitcoin to be used in defi protocols without Synthetic assets or mediators and addresses a prolonged BTCFI challenge.
This model attracts institutional interest. An initiative Led by the students and alumni of Harvard University form a BTC supported by Stablecoin using Bel2. The platform also supports decentralized lending that provides Bitcoin holders to sollate loans in stablecoins while maintaining exposure to BTC price appreciation.
The position in the Elipper’s market and future potential
The Eastay ‘BTCFI approach competes with established solutions to Bitcoin Defi such as stacks and rootstocks. Stacks primarily benefit from the end of Bitcoin, and Rootstock focuses on EVM’s compatibility, as Elipos recognizes itself by incorporating high security (through combined mining) and crosschain’s inteoperability. These positions are elapos as a dreadful player in the BTCFI scene.
However, the report recognizes some challenges, such as regulation uncertainty, ecosystem awareness and some technical complex. Despite these obstacles, the combination of Bitcoin’s security elapos, unbelievable intelligence contract with implementation and Institutional -backs This is a position for potential growth in the emerging BTCFI sector.
Bitcoin Defi’s Adoption Challenges and Opportunities
While the blockchain industry is moving towards the interoperability of crosschain and decentralized management, Bitcoin-secured assets are expected to play an important role in repairing both traditional and decentralized finances.
Changes in Elyapos, especially by Bel2 and the decentralized identity (created) framework, aim to enhance the security, scalability and institutional adoption of Bitcoin in Defi.
With financially secured bitcoin expected To expand greatly, the infrastructure of the elapost provides a stable foundation for the next wave of decentralized financial applications.
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