Elastos (ELA) aims to transform the internet as we know it today, creating a new internet that is powered by blockchain technology to revolutionise trust and allow users to own and distribute their digital assets and profit from them.
Content creators often give up their rights of their content as soon as they upload it on current platforms. Once a video is on YouTube it is YouTube’s intellectual property and often videos are downloaded and distributed among various websites. Elastos aims to secure digital assets for creators. There will be digital IDs created for each digital asset so ownership can be traced and rewarded accordingly. Content creators can limit the supply of their asset, making it valuable to the consumer after consumption.
The scarcity of digital assets is what will provide them with value, think of a film that everyone wants to see but there are only 100,000 copies created on the network, the demand will be so high that consumers could sell the content for a higher price than what they originally purchased the asset for. Fraudulent copies will be impossible, rewarding content creators and promoting creativity and production.
Another element that Elastos is aiming to implement into their smart economy is crowdfunding of digital assets. This could work in many ways but say for example there was a educational course that needed funding to be created. People in the network can contribute using ELA tokens and then receive a percentage of the transactions as a reward for the initial investment. There are tonnes of other ways that crowdfunding could be implemented in the digital asset world.
This is an entire new concept that is moving us towards a digital asset economy.
Elastos is a third generation blockchain technology that tackles the issues we have with second generation cryptocurrencies such as Ethereum.
1st Generation — Bitcoin
Bitcoin introduced the power of decentralised ledger technology to the world, showing how we don’t need financial institutions to transact value. Bitcoin’s purpose is a digital currency, with the intent to become electronic cash. Bitcoin is great; however, it is extremely outdated. Bitcoin has very slow transaction times, expensive transaction fees and uses Proof Of Work mining which is vastly uneconomical. Thanks to Bitcoin, the 2nd generation cryptocurrencies were born.
2nd Generation — Ethereum
Ethereum, as well as many others, are second generation cryptocurrencies. Ethereum was one of the first cryptocurrencies to introduce ‘smart contracts’ and the concept of decentralised apps. Smart contracts put the trust of contracts in the trust of code. For example, If I bought a TV from an online merchant, the payment would only clear once the TV had arrived and I was satisfied with it. They can be coded to included things like ’14-day money back guarantee’ and every other element that is in a normal contract. Drastically improving efficiency and breeds a new generation of trust.
Ethereum is a great project, however the scalability of smart contracts that are hosted on the Ethereum network is limited. A game called ‘CryptoKitties’ caused massive network congestion and that is just one of many decentralised applications that use smart contracts.
3rd Generation — Elastos
Elastos is one of many new cryptocurrencies that are build on a third generation blockchain, focussing on a few main elements to combat the scalability issues that arise with 2nd generation cryptocurrencies:
- Storage and Speed
- Bugs within the Smart Contracts (security vulnerability).
- Deletion of redundant data
The issue with second generation smart contracts is that they have to run solely on the blockchain, which causes network congestion and high transaction costs. Decentralised applications for Elastos are run by blockchain technology but can be built on current operating systems (IOS, Andriod and computer).
The lead software engineer for Elastos, Rong Chen, has vast experience building platforms at Microsoft and has had this vision since the early 2000’s. Blockchain technology was the final piece to the puzzle and now Elastos has many active developers and very well known members in their foundation such as Da Hongfei — the CEO of NEO.
Rong Chen understands the importance of ease of use for both the consumer and the producers. The integration of multiple well known coding languages make development relativity easier than other blockchains. They also support Android and Apple operating systems, which most other blockchain’s do not.
Safety is at the core of Elastos, decentralised applications are forbidden from accessing the network so they are not subject to DDOS attacks. There is also no need for IP addresses so users are far less likely to get hacked.
Elastos is not just the new internet, but a whole entire smart economy. Focusing on digital assets, monetising computing power and spare storage, financially incentive trade of digital assets all combined with the highest level of security and the removal of the middleman. With speed, security and minimal cost at the heart of Elastos, it is bound to scale over time.
Thanks for reading this article,
Download my free eBook called ‘Everything You Need To Know Before Investing Into Cryptocurrencies.’
P.S. You’ll also receive an email that details the top 5 cryptocurrencies I invest in and why.