Cambridge, MA, December 9th, 2024, Chainwire
A team of Harvard students and alumni seeks to provide accessible, decentralized financial tools to promote economic inclusion and financial autonomy
As Bitcoin surpasses its previous all-time highs, a team of Harvard students and alumni, operating under the name New Bretton Woods (NBW) Labs, has released a whitepaper outlining the development of a Bitcoin-backed stablecoin utilizing the Bitcoin Elastos Layer 2 (BeL2) protocol.
The BeL2 protocol, developed by Elastos—a SmartWeb ecosystem provider—is highlighted in the whitepaper as a key component of a Bitcoin-integrated SmartWeb. This approach aims to reimagine global finance, drawing parallels to the transformative effects of the Bretton Woods Agreement of 1944. The NBW Labs whitepaper, prepared as part of a student membership with the Harvard Innovation Labs, explores the potential for a Bitcoin-backed stable currency to address inflationary risks and enable transparent, programmable financial tools for a wider audience.
The proposed stablecoin, known as the Native Bitcoin Stablecoin (NBS), is pegged 1:1 to the U.S. dollar and collateralized by Bitcoin. This design enables Bitcoin holders to secure liquidity without selling their BTC or relying on third-party custodians, preserving both asset control and wealth. By leveraging the Bitcoin-Elastos Layer 2 protocol, the project seeks to provide accessible, decentralized financial tools to promote economic inclusion and financial autonomy.
Jacob Li, Head of Operations at NBW, stated: “A Bitcoin-backed stablecoin represents both an opportunity and a necessity. Utilizing Bitcoin as collateral offers a stable and secure financial instrument while adhering to principles of decentralization.”
Built on Bitcoin-Elastos Layer 2 (BeL2), the system integrates Bitcoin’s security and decentralization with Elastos’ scalable and interoperable SmartWeb infrastructure. The BeL2 protocol facilitates non-custodial Bitcoin collateralization via mainnet locking scripts, verified through Zero-Knowledge Proofs for enhanced privacy. Oracles bridge these proofs to EVM-compatible smart contracts, while decentralized Arbitrator nodes manage dispute resolution and time-based operations, ensuring system stability.
Key Advantages of the NBW Approach
- Liquidity Without Selling Bitcoin: The system allows Bitcoin holders to mint NBS by collateralizing their BTC, unlocking liquidity while maintaining ownership of their assets.
- Hedge Against Inflation: NBS provides an alternative to inflation-prone fiat currencies, serving as a decentralized store of value.
- Access to Decentralized Finance: Minted NBS can be utilized across decentralized finance (DeFi) platforms for activities such as lending, borrowing, and liquidity provision.
By integrating Bitcoin’s trust and security, the NBW system aims to provide a scalable model for decentralized finance (BTCFi). This initiative draws on Satoshi Nakamoto’s 2010 vision of merge-mining, a process supported by Elastos technology that allows Bitcoin miners to concurrently secure the Elastos network. With approximately 44.58% of Bitcoin’s global hashrate involved in merge-mining through prominent pools such as Antpool and Binance, Elastos achieves a high degree of network security.
Sasha Mitchell, Head of Operations at Bitcoin Elastos Layer 2, remarked: “The potential to unlock dormant Bitcoin value through stablecoins opens new possibilities for decentralized finance while maintaining Bitcoin’s robust security.”
Broader Applications of the Native Bitcoin Stablecoin
The Native Bitcoin Stablecoin introduces new use cases for decentralized finance, acting as both a medium of exchange and a tool for financial management. It provides a pathway for individuals, institutions, and governments to adopt programmable and transparent financial solutions while benefiting from Bitcoin’s inherent trust and resilience.
By bridging Bitcoin with decentralized finance, the NBW system seeks to enhance global financial stability, promote economic inclusion, and unlock the untapped potential of Bitcoin.
Additional Information
Users can read the Whitepaper: https://www.nbwlabs.org/Whitepaper.pdf
To learn more: Users can visit www.nbwlabs.org
Users may Contact: Email [email protected]
About New Bretton Woods (NBW)
New Bretton Woods (NBW) is an independent initiative led by Harvard students and alumni, developed as part of a student membership with the Harvard Innovation Labs during the Fall 2024 semester. The project integrates Bitcoin’s security with Elastos technology to explore innovative solutions for decentralized finance.
Contact
Roger Darashah
[email protected]
