This guy is Mr Rong Chen. He used to be a senior software engineer for Microsoft for over 10 years and was part of the team that created the .net operating system. When that project ended in 1999, he left Microsoft in the year 2000 to start Elastos as the world’s first internet based operating system.

In 2003 he was receive by Jin-tao Hu, the former, CPC General Secretary. • In 2013, Foxconn made a $ 200 million RMB investment in the Elastos Operating System. For those who don’t know who Foxconn are, they are China’s and probably the world’s biggest electronic products manufacturer. They produce electronic products for the biggest international companies e.g. Blackberry, Ipad, Iphone, Ipod, Kindle, Nintendo DS, Nokia Devices, Playstation 3 and 4, Wii U and Xbox one. At one point it was estimated they manufactured 40% of all consumer electronics sold worldwide. So very big investor. • In 2017, Sunny Feng Han and Jihan Wu started the Bitcoin Investment Elastos Blockchain Community and founded the G3 with Bitmain, NEO, and Elastos. You guys all know who Neo is, Bitmain is the world’s largest maker of mining chips.

• In 2017, the Elastos Blockchain community also received a global digital token investment worth 600 million RMB.

So Elastos is not a new project, it is a project that has been in the making for 18 years, and huge industrial attention and financial backing. It is a novel technology that has only recently in the last couple of years integrated with blockchain technology to solve some of the problems with security and asset value that it couldn’t solve with just the internet alone. We’re gonna cover all of the tech and more, but Elastos is in a nutshell a mega project that I believe is going to take the blockchain world by storm in the next couple of years. It’s a project that I believe every crypto investor should be aware of.

As written in their whitepaper’s introduction, “Elastos aims to create a new kind of internet, powered by blockchain”.

This new internet will be called the “Elastos Smart Web” or the “internet of wealth”.

The main difference with this new internet is where the current internet is a web of information. So if you click on a URL, it directs you to a website. Elastos Smart Web though, is a web of Apps. So when you click on a URL, you don’t go to a website, you go to an APP.

How does it achieve this? It does so by being an internet based operating system.

When we say operating system, we generally think of Microsoft Windows, Apple IOS and Linux. These are the major operating systems PCs run on and programs/ applications are built on these operating systems.

The blockchain equivalent would be a blockchain platform/ protocol. E.g. projects like Ehtereum, Neo, Cardano etc..

The problem with all of these operating systems is that they have to be present for you to open your app. If you don’t have an operating system, you can’t open an app. Almost every electronic device is dependent on a few major operating system to be used, it’s an extremely centralised process. Furthermore, there are a lot of limitations with using apps on the mainstream platforms e.g. ownership of digital assets. E.g. when you buy an E-book and download it to kindle, do you really own it? Or does Amazon own it and just allow you to read a copy? If you really own a book, you should be able to sell it. That’s the proof of ownership, so the ownership of digital assets is a major problem current operating systems and the internet.

Elastos is an operating system that is built on the internet. Meaning, as long as you have the internet, you can access the app from anywhere. It is a peer-to peer network, so there is no centralised control and no unnecessary middle man between the app and the users and the entire platform is open source (meaning anyone can build an app on it, just like anyone can create a website on the current internet. It is also designed to use blockchain technology to establish ownership of digital assets and create and economy of wealth, that’s why it’s called the internet of wealth.

There are 4 pillars to the Elastos project.

i) Elastos Blockchain ii) Elastos Runtime iii) Elastos Carrier iv) Elastos SDK

If you understand these 4 pillars, you understand the Elastos project. So lets take a look at each of the pillars.

Elastos Blockchain

Current blockchains are designed to record transactions, not to store data. There is simply not enough space on the current blockchain to store a large quantity of digital movies and books. Blockchains are also made for consensus-based record keeping, they were not made to be a processor for large complicated applications. That’s why there is the issue of scalability because blockchain was never designed for the things that people are using it for these days.

The problem as well with usage of blockchain technology currently is that it is a parallel process with legacy systems. So e.g. if I am running a blockchain based Dapp on my cellphone. It doesn’t matter how powerful my cell phone is, it cannot speed up Ethereum’s computation. Vice versa, it doesn’t mater how secure Ethereum is, it cannot extend its security features to the cell phone. This is because the technology is not integrated. It is not integrated because smart contracts are designed to run on the blockchain exclusively.

To address this problem, Elastos proposes to adopt a flexible main chain and sidechain blockchain design structure. The main chain is only responsible for basic transactions and transfer payments, while the sidechain executes smart contracts to support various applications and services.

And what this means is that the Dapps built on Elastos will have the benefits of blockchain technology built into it, but they don’t need to run on a blockchain platform, they can run on the internet based operating system known as the Elastos OS which runs on Android, IOS or any PC system.

This is an interoperability solution that I have never seen in any other blockchain project, yet it makes so much sense.

Now this Elastos OS, which is the internet based operating system, has a core component known as the Elastos Runtime. Elastos Runtime is a 3 in one technology. It is the security, as well as virtual machine and also the SDK ( or software development kit). The virtual machine and SDK are what allows the Dapps to integrate into other mainstream operating systems. The security layer is what keeps the Elastos Smart Web safe from the malware and viruses on the internet.

So the current internet is completely infected with viruses and malware etc.. so if I have 500 dapps running on the Elastos OS, rather than having to install 500 anti-virus and anti-malware softwares for each Dapp, I simply build a super security system into the Runtime which checks every interaction between the internet and the Dapps.

Elastos will also be working with NEO and Ontology to create digital asset identity. This will mean every asset on the smart web will have an identity AND also a limited quantity. So e.g. if it’s an E-book, its not unlimited copies, there will limited copies, this creates demand and gives each asset a value. This asset is then in the control of the owner to sell or do as he sees fit.

For those of you who want to know how the ID system will be achieved, check out our Ontology video, as Ontology is the one driving the ID system and their tech is described in detail in our Ontology review video.

Another thing to mention about the Elastos blockchain is their concensus algorithm.

So their main chain will be running POW. The reason for proof of work is because POW is the most secure concensus algorithm. It does take up electricity etc.. but they circumvent this problem by doing what is called merged mining with Bitcoin. Which means they will be an auxillairy chain of Bitcoin. An auxillary node, does not need the concensus of multiple nodes, so its doesn’t need all the nodes on Bitcoin to reach concensus for its transactions. It also means that all the excess energy on the Bitcoin’s POW can be used to process Elastos work, so it doesn’t use any excess energy in addition to what Bitcoin is using now. So it’s very smart, it is basically making full use of Bitcoin’s additional computing resources, whilst being environmentally friendly, without the limitation of Bitcoin’s consensus on every node and being really independent of Bitcoin. Nicely done!

Also remember that only the main chain uses POW, and in their case, the majority of the blockchain processing work and smart contracts is actually done on the side chains which exist somewhat independently and each side chain will have their own concensus e.s. POS, DPOS, etc… The main chain is only responsible for very basic transactions and transfer payments only.

When you put all of these features together, what you end up with is essentially a decentralised internet.

So just as you might have Singtel or Telstra or Optus being your service provider and providing you internet, Elastos smart web has a service provider for the decentralised internet is called Elastos Carrier.

It is basically a decentralised model where each user of the Smart web is considered a node and contributes processing power to do work such as create decentralised domain names, decentralised storage etc… So for those who are familiar with the Substratum project which is a Dapp to create a decentralised way of using the current internet, the Elastos Carrier is similar in concept, but rather than improve the use of the current internet it is basically creating an entire internet. The scope of this project is really mind-blowingly big for me. And like any decentralised project, should the user choose to lend his processing power, he will be remunerated with Elastos tokens.

Talking about the Elastos Token, it’s the native token which will be used for trading, investing in digital assets, payments of blockchain fees etc.. there will only ever be 33 million tokens in existence. Now circulating supply is the tokens that are active, that means actually seen on the market. Sometimes with crypto, coins get lost, meaning the user loses his wallet etc… and coins are removed from circulation. Because Elastos is an economy and they do need to keep the circulating supply relatively stable, there will be an annual 4% increased in circulating supply. Again this is not meant to dilute the currency, its meant to provide stability to the circulating supply. The total currency will always be capped at 33 million tokens. That’s not big in the crypto space where you have projects with 100billion tokens.

The current circulating supply of Elastos is only 5.1 million tokens. And to put things in perspective. Bitcoin who has 17million circulating supply has a token value of $8.645 whilst Elastos is only $48. If you think Bitcoin is too big a comparison, look at Ethereum, Ethereum has 99million circulating supply (so 20x much more diluted) but its current token is worth $719. Can Elastos as a project every catch up to Ethereum even Bitcoin, in terms of its project scope and use case, I definitely think so. It’s marketcap right now is just under $250 million, I think this coin could be a top of the market coin worth $50–100 billion one day. Bitcoin in this down market is already $147 billion. So lots of room to grow.

Elastos had a token lock-in and return plan earlier in Feb, which unfortunately if you were like me, and didn’t know about you would have missed out. But it was a scheme that allowed holders to stake their tokens for up to 3 years with 4,5 and 6% returns each year. You could also withdraw your tokens at any point, but why would you want to.

So those who missed this missed this, but something we can still look forward to is sugar dividends.

The details of this has not been released, but it has been announced that holders of Elastos tokens will be entitled to future airdrops of future coins on the ecosystem.

I’m going to spend the rest of this post talking to you about why I think Elastos has a huge potential to explode very soon.

The first reason is about exchanges.

Since it hit the market in Feb until now, it is only being sold on two exchanges which are Huobi and BCEX. The reason for that is their SPV (simplified payment verification) was still in development and they needed that to integrate with exchanges. Taken from a recent reddit post, their CMO Fay, recently told the community that they have come to an agreement with 7 new exchanges and are now just waiting for the SPV to be finished to integrate and list them.

I saw this and I thought, “my goodness is this potentially massive” and I actually signed up for an account with Huobi today just for this reason. If anyone is thinking of signing up for Huobi after this, feel free to use my new registration link below.

The second reason is their advisors

They have a stellar team of advisors including Da Hongfei, the CEO of NEO, Jihan Wu, the CEO of Bitmain, there’s also Xueyong Gu, who is a professor at Tsinghua University and Dean of the icentre international exchange, Ziheng Zhou who is the advisor and member of the academic committee for Alibab Research Institute.

The third reason is potential partnerships. We we already know they are part of G3 which is a partnership with Bitmain and Neo, and also have a massive investor in Foxconn.

But potential partnerships include Huawei the telecom giant who visited Elastos in April and left stating they were considering future partnership

and Alibaba who invited Elastos to their headquarters last year in Dec.

There’s also Commerical airline industry, Huafu Enterprise Holdings Limited and Far Eastern Air Transport (FAT) who invited Chen Rong, the founder of Elastos, for a two-day visit to discuss the future cooperations of the three parties last month,

and also in April, Shanghai Automobile Group, the largest automobile manufacturer in China, commissioned the Elastos tech team to implement Elastos applications in the in-vehicle central control system.

And this is the very potential future partnerships, it excludes the list of their current partnerships including Origin Agritech, Reactor (RIGG) gaming and more.

This project is not fluff guys, it’s the real deal. It’s cutting-edge technology that is getting adopted by huge organisations with future massive partnership and exchange listings. I think Elastos project going to be absolutely huge.

So that’s it guys, these are my thoughts on Elastos, I personally think this is a great project!

As always, none of this is professional advice. This is just my personal thoughts and opinions, so always do your own research and make your own decisions.

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