Bitcoin-focused blockchain Elastos has partnered with decentralized physical infrastructure networks (DePIN) network IoTeX on digital identity validation. However, the partnership also aims to bring Bitcoin’s robustness and trust to the forefront of DePIN, marking a significant leap towards the integration of digital and physical assets using Bitcoin.
The partnership represents an effort to leverage Bitcoin’s Layer-2 capabilities, specifically through Elastos’ approach, to improve the functionality and accessibility of real-world assets (RWA) such as buildings, equipment and other capital-intensive assets. By integrating these assets with blockchain technology and IoT (Internet of Things), the collaboration aims to create a seamless, secure and efficient ecosystem for managing and monetizing the physical infrastructure.
At the heart of this partnership is direct integration with ‘Layer 2’ Bitcoin, a move that Raullen Chai, co-founder and CEO of IoTeX, describes as a “major milestone.” He noted:
“Extending our offering to the Elastos Smart Chain (ESC) offers a number of compelling benefits, including direct integration with ‘Layer 2’ Bitcoin, meaning agreements can be directly embedded and matched into the world’s most popular and trusted digital currency . This is an essential capability as DePINs become more mainstream.”
This integration allows agreements to be embedded and reconciled directly into Bitcoin. This capability could be critical as DePINs become more mainstream, providing a secure and transparent mechanism for managing agreements and transactions within the physical infrastructure space.
This integration is powered by BTC Oracle of Elastos’ BeL2, which enables secure and efficient communication between Bitcoin and EVM blockchains through zero-knowledge proofs (ZKPs), laying the foundation for complex decentralized applications directly on Bitcoin Layer 2.
IoTeX’s modular infrastructure platform connects smart devices and real-world data to blockchains, while its middleware solution, W3bstream, brings real-world data on-chain. This capability is essential for seamlessly integrating IoT devices with blockchain technology, ensuring integrity, and optimizing speed and scalability.
Jonathan Hargreaves, Elastos Global Head of Business Development & ESG, summarizes the essence of this partnership as Web3’s ‘next frontier’. By reducing the number of intermediaries and increasing transparency and privacy in the physical domain, Elastos and IoTeX bridge the gap between the digital and physical worlds, powered by the security and trust of Bitcoin.