Everything you need to know about Elastos (ELA) in cryptocurrency


Elastos hope to become the internet of the future by building the first open-source blockchain internet operating system.  This involves developing the infrastructure for a new, more secure, internet that enables value transfer and wealth generation through ownership and exchange of digital assets, including the use of smart contracts and dApp hosting.

Quick Summary

  • Highly interoperable peer-to-peer network
  • Modular blockchain with sidechains hosting computing activities
  • Secure and stable environment with only one point of attack
  • Ownership of digital assets and wealth generation through trading these assets

Elastos will use blockchain technology to run a decentralized peer-to-peer internet operating system.  The design is highly interoperable with other blockchains, as well as with traditional operating systems, including Windows, iOS, Android, and Linux, making it a serious contender for the underlying network of the Internet of Things (IoT).

It will feature a decentralized network operating system responsible for running mainchain networking activities, including the transfer of value and data while computing tasks such as dApps, mining, and smart contracts are executed locally in sidechains separate from networking events.  This separation creates a virtual machine under which a secure and stable environment can run business-grade applications, all without posing a security risk through direct network communication.

  

DApps

Currently, internet users surf by clicking website URLs, but under the Elastos network, users will instead visit dApps that operate on the Elastos runtime system, which is a lightweight program designed to support the execution of applications created on the platform.  It works on any mobile device or PC, making it accessible for anyone on any device.

This system offers greater security because each dApp must have a decentralized ID, which is verified by the network each time a request for internet access is made.  Also, dApps only interact with Elastos runtime, meaning there is one point of attack for cybercriminals, the runtime system itself.

Elastos Carrier

The Elastos web runs through the Elastos carrier, a decentralized, peer-to-peer system that provides the hosting.  Each user is treated as a node in the Elastos network, and can choose to give processing power, bandwidth, and/or storage to the Elastos web.  In return, the contributors are paid in ELA tokens.

The Elastos carrier is safe from distributed denial of service (DDoS) attacks, due to the use of ID authentication via the decentralized ID system.  And man in the middle (MitM) attacks are also rendered unworkable, as a result of no middleman being present in a direct peer-to-peer network.

Digital Assets

The term digital assets can include e-books, music, movies, games, etc.  The main problem with the current paradigm is that it’s possible to buy a digital book, but once read, the book cannot then be sold – which by definition means the book was never owned in the first place. 

Elastos believe that people should have rights to their digital property, they propose to utilize their decentralized ID system to administer IDs for digital assets.  By marking each digital asset to an owner, and incorporating the use of smart contracts, it’s possible to run a system of digital asset trading.  This process forms the basis for a transparent, trustworthy and secure internet of wealth, where users get to reap the benefits of ownership, not conglomerates.

Merged Mining

The Elastos blockchain uses a Proof of Work (PoW) consensus model with a somewhat unique element – merged mining.  This refers to two different cryptocurrencies being mined simultaneously, meaning a low hash cryptocurrency piggybacks on a more popular one to increase its network hashing power.

Through a partnership with the world’s biggest mining pool, Bitmain, Elastos mining occurs cooperatively with Bitcoin.  By doing this, the Elastos blockchain benefits from the reliability and security of the Bitcoin blockchain and receives a boost in liquidity through ELA and BTC trading.  Bitmain also benefits from this situation by earning additional income at no additional cost or power usage.

ELA

At present, the circulating supply is 14,514,290 ELA, from a total supply of 34,064,564 ELA.  ELA peaked with a price of $89.19 towards the end of February 2018; it currently sits at $2.11.

Annually, the number of ELA will increase by 4%, as coins are mined in conjunction with Bitcoin.  The project operates a treasury system, with 30% of mined coins going to the Elastos Foundation, and the remaining 70% to miners.  Holders of ELA are entitled to airdrops of all tokens from dApps created on the Elastos network.

It’s expected that organic demand for the coin will be high, given the digital asset trading system proposed, and the possibility of using ELA to pay for Elastos-based domain names for dApps, usernames, storage services, and issuing tokenized content. 

The Team

Rong Chen (Founder) – a Masters of Computer Science and former Microsoft software engineer.  Rong’s concept of a new internet started way back in 2000, with the founding of Kortide, but it wasn’t until 2017 when he realized the benefits of using blockchain that Elastos was formed.

Sunny Feng Han (Co-founder) – Ph.D. in Physics and former principal of an English technology school in Beijing.  In May 2017, Rong co-founded the Elastos Foundation with Sunny to build their vision of using blockchain to drive the internet and create a new digital smart economy model that turns numbers into wealth.

This leadership team is supported by a large group consisting of senior technical managers, engineers, and team members that deal with community development.  However, what makes the Elastos team particularly noteworthy is the inclusion of blockchain big hitters, CEO of Bitmain, Jihan Wu, and CEO of NEO, Hongfei Da, who both work in an advisory capacity.

Summary

The Elastos project proposes a decentralized network operating system with which to run a new internet.  The modular blockchain and peer-to-peer design offer a secure network immune to DDoS and MitM attacks.  And because it’s highly interoperable, anyone can access and use the network on any device, which is an ideal situation for operating the IoT.  By using the decentralized ID system, users will have ownership of digital assets, and be able to generate wealth through the trading of these digital assets.  The partnerships and advisory team give Elastos a significant advantage, but it remains to be seen whether the project has enough to actualize Chen’s vision.

 


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Wilson

Wilson is a 3x Startup Entrepreneur. He is passionate about the cryptocurrency space. You can catch him tweeting about cryptocurrency often @itswilson8 You can also email Wilson directly at wilson@cryptomenow.com

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