AMA with LetsExchange and Elastos

Curious about how Elastos is revolutionizing Bitcoin with Layer 2 technology?

Jonathan Hargreaves, Head of Growth at Elastos, shared groundbreaking insights into how this pioneering blockchain platform unlocks new potential in Bitcoin staking, decentralized finance, and the SmartWeb in the AMA session on Twitter spaces hosted by LetsExchange.

Below are the main takeaways from the AMA session.

John from LetsExchange: Can you elaborate on how Bitcoin L2 aims to address the global debt crisis? And how specifically can Elastos help?

Jonathan: The global debt crisis stems from a lack of liquidity, where people needing loans can’t access capital. We see the ability of L2s, like Elastos, to basically open up over a trillion dollars of dormant Bitcoin liquidity. This means you can stake your Bitcoin, earn interest from it, and develop new financial products. So, even if the market drops, you can still earn money and interest from your Bitcoin. This is a new era for Bitcoin and L2s, and it’s really helping to move liquidity to the right places, addressing the core issues of the global debt crisis.

Tolga (community question): How does the merge mining process affect the supply and demand dynamics of the ELA token, particularly in relation to Bitcoin?

Jonathan: The merge mining process allows us to benefit from Bitcoin’s massive hash rate, currently around 46%. By adding just a few lines of code, Bitcoin miners can simultaneously mine ELA, essentially for free. This creates a secure and flexible environment for the ELA token within the broader crypto ecosystem. With a limited supply of 28 million ELA, the merge mining process helps ensure the network’s security while allowing miners to hold and potentially wait for significant price increases, influencing supply and demand dynamics.

Sam (community question): Can you explain how decentralized ID registration works with your platform and the SmartWeb and what advantages it provides users?

Jonathan: Elastos is unique because it has a dedicated Elastos Identity Chain specifically designed for decentralized IDs (DIDs). When you start a wallet on our platform, you generate a decentralized identity that you can link to various credentials, such as your driver’s license or marriage certificate. This system allows you to securely own and control your identity across different platforms. The key advantage is that it enables you to manage your digital identity in a decentralized manner, ensuring privacy and security while also allowing seamless integration with different dApps and services on SmartWeb.

These are just the main highlights of the AMA session. To learn more about Elastos and BeL2, listen to the full AMA.