What is Elastos?
Elastos is an environment where decentralized applications are detached from the internet while also permitting full scalability to millions of users. Elastos enables the generation of wealth through ownership and exchange of your data and digital assets.
What problem does it solve?
1) Decentralized applications are slow, not scalable, and applications in general are vulnerable to attacks and third party malware.
2) Digital assets are easy too easy to copy and share.
What is its solution?
Create a fast and secure network for Dapps and scarce digital assets. From its whitepaper, here is a comparison to Bitcoin and Ethereum:
How does it work?
Elastos is built off of four pillars: its blockchain and smart contracts, Carrier, Runtime, and Software Development Kit. Its blockchain gives everything within its ecosystem (devices, assets, individuals, web sites) a unique ID to establish trust between users. With unique IDs, assets cannot be copied and reproduced freely. The Carrier is a network for direct peer to peer activity. The Runtime is an operating system that runs applications and digital assets without a third party. Runtime prevents malicious third party attacks and malware from interfering with digital assets. The Software Development Kit is essentially a digital toolbox for developers to use to create apps and assets within the Elastos ecosystem.
Elastos uses its mainchain to transfer ELA but uses sidechains for smartcontracts and dapps. Popular Dapps will therefor congest particular sidechains, but not the primary Elastos mainchain. However, sidechains can use their own customizable consensus methods, so if congestion is a concern, a Dapp developer could just to use a faster consensus method.
Issuing tokens for digital assets:
Users can issue tokens for digital assets and establish ownership of digital content through smart contracts. A great example would be how movie directors can fundraise for a new movie and distribute tokens to contributors. The direcotrs could write a smart contract so that whenever somebody watches the movie, token holders will get a small share of the fee.
Supports traditional programming languages:
Developers can create applications within Elastos using C++ and Java.
Elastos will adopt merged mining with Bitcoin, which means that the proof of work used to mine Bitcoin will also be valid proof of work for mining Elastos. Merged mining with Bitcoin means that Elastos will have a secure network and minimizes electricity usage. Also, Bitcoin miners will have an incentive to keep mining Bitcoin instead of an altcoin, which would make Bitcoin’s network more secure.
What is the point of ELA?
ELA is used to buy digital assets, use decentralized applications, and to pay for fees within the Elastos ecosystem.
Elastos started with 33 million coins but it has a 4% inflation rate. The inflation is distributed 70% towards miners and 30% towards the Cyber Republic, which is a decentralized autonomous organization intended to reward Elastos community contributors.
50% of the initial 33 million coins is for ecosystem development. Some of that 50% was for a Bitcoin airdrop and some of it is for the Cyber Republic
24% went to crowdfunding
15% went to angel investors
11% went to the Elastos Foundation
Elastos is lead by Rong Chen, a former senior software developer for Microsoft. Elastos has an extensive team, but most of their team member were hard to research on LinkedIN. Elastos has prominent advisor team with most notably Jihan Wu, CEO of Bitmain and Hongfei Da, the CEO of NEO. It is presumable that Jihan Wu and Hongfei Da can significantly help Elastos’s development.
Elastos is an exciting project but is still in its infancy. We would expect high risk and high rewards associated with Elastos. If one is interested in Elastos but does not want to take on that much risk, it may be less risky to invest once Elastos has more technical development and more community support.