Blockchain operating system Elastos is one of a growing number of monolithic blockchain projects coming out of China. Along with NEO and Ontology, many are calling Elastos a kind of “third pillar” of China’s burgeoning blockchain dominance. With some analysts predicting that Elastos may one day compete with Google for internet influence and cultural significance, cryptocurrency investors are starting to pay attention.
Elastos has not received a great deal of press in the United States. It’s currently only sold through a single Chinese exchange, Huobi. It also trades at about $80 per coin. Many of the resources about Elastos are translated from Chinese, and fine details are sometimes lacking. So why do we think it’s worth making a gamble on Elastos ELA, a coin that hasn’t even broken the top 1000 on CoinMarketCap.com? To find out, read on.
It is quite possible that Elastos has been in development longer than any other blockchain project, Bitcoin included. Elastos founder Rong Chen left his job at Microsoft and began working on an innovative operating system project. Since then, the project has involved, dozens of team members have come aboard, the Chinese government has approved, partnerships have been made, an ICO has been launched, and more than 4 Million lines of code have been committed to the Elastos code base.
But what does Elastos do? Elastos is a project of multivarious goals and use cases. Here are some of the most important:
Elastos will be an operating system for all major blockchains, one which could compete with the likes of Google Chrome or Apple iOS for market share in the evolving internet.
Elastos is a novel new way to store blockchain Dapps. Rather than crowding the main chain with Dapps (as with Ethereum or EOS), Elastos uses a combination of internet cloud storage and side chains to keep all of this traffic off the main chain, dramatically increasing throughput.
Elastos is a smart contract platform, like Ethereum or NEO, which incentivizes smart contract/Dapp development with the network’s native token, Elastos ELA.
Elastos is a trust network. As partnerships extend between Elastos and other blockchains, the Elastos operating system will support their Dapps and smart contracts. Users of the Elastos OS can create a digital identity which allows them to move freely between dapps and blockchains, without cumbersome passwords and IP-based identity. The Ontology network is partner in this effort, as is NEO for many consensus issues. It’s important to note that Elastos is not a NEO token; it’s a blockchain network unto itself.
Elastos will launch unique digital assets which can be bought and sold, but not pirated or copied. An example from Elastos is a mobile video game, with a supply limited to 500. Because each unit will have its own blockchain-protected identity, these games will be able to be purchased and resold just like physical goods, subject to all of laws of supply and demand we see in the traditional economy. Digital collectables, a la Cryptokitties, will be a big thing in the future, as will digital mortgages, works of art, etc.
This, in a nutshell, is what Elastos is about. It shares many characteristics with blockchain 2.0 smart contract platforms, but because they are using a unified operating system to tie it all together, Elastos may have the most concrete plan for mainstream user adoption yet existent in the blockchain space. In short, Elastos is a moonshot if we’ve ever seen one. So what’s the deal with the token, Elastos ELA?
Elastos Token: Elastos ELA
Elastos just finished its ICO/crowdsale in February, and is today (March 3) available through only one exchange: China’s Huobi. Despite being relatively unknown, Elastos ELA is trading for about $80 per coin, after selling through the ICO at about $12 each. What justifies this high price for a relatively unknown coin?
We’ve already explained the utility of the Elastos network, but let’s dig a little deeper into the use case of the coin itself:
Elastos can be merge mined with Bitcoin, meaning that Bitcoin miners can earn BTC and ELA without expending any extra energy. Whether this makes Elastos “green” is debatable, but it’s better than starting from scratch and gives Elastos ELA a great deal of attention from one of cryptocurrency’s most significant populations, Bitcoin miners.
Elastos can be used as a unit of exchange, just like most cryptocurrencies. Its primary role is not to be money, but it’s inevitable that it will be used for payments outside of the Elastos network.
Elastos rewards holders. Every time a coin is launched on Elastos, a portion of the coin supply goes straight to Elastos ELA holders. Simply by owning Elastos ELA, you’ll also own a piece of every project ever released on the platform.
The Elastos supply is only 33,000,000. That’s a third of Ethereum’s supply. Elastos ELA is, and will be increasingly, scarce.
Elastos holders can “lock in” their coins for periods of 1, 2, or 3 years, with a guaranteed annual interest payment (non-compounding) of 4%, 5%, or 6%. That may not be a earth-shattering annual return, but for users holding ELA for long periods of time for the ICO rewards (described in the third point in this list), the extra benefit will be quite welcome.
Because of Elastos’ integration with existing projects (Bitcoin, Stellar, NEO, Ontology), and the support of the Chinese government, it’s likely that Elastos is going to be big. It has one of the most concrete and necessary use cases in its blockchain operating system, and its approach to scaling, throughput, consensus, and trust may be the best in the business.
If Elastos becomes the operating system by which users access Dapps from all blockchains, it could become the de facto internet, for many. Its insulation from internet hacks (DDOS, phishing scams, etc.) makes it a stronger framework for the internet. “Blockchain Powered Internet”, Elastos’s slogan, could become the new paradigm. Suffice to say, we’re excited about Elastos.
So what if you’d like to buy some Elastos of your own? Read on.
Elastos is only available through one exchange, China’s Huobi. Most western crypto traders have never used Huobi, but fortunately, signup is painless and the exchange works like a charm. As Elastos grows, it will definitely be added to more common Western-focused exchanges, like Binance. Until then, users can create a Huobi account for purchase. We’ll describe both methods.
But first, let’s get your Elastos Wallet set up. Go to https://wallet.elastos.org/#/onboarding/welcome and use the simple walk-through to create your wallet. Write down the 12 word recovery phrase you see and place the words in the right order to confirm. This phrase MUST be kept safe, because it is your password for restoring your wallet with each use. For security, this web wallet is essentially destroyed each time you log out. You recover it when you log in, with your pass phrase and password.
The Elastos wallet has only two pages: the homepage, which displays your balance…
and your addresses page. Elastos generates a new public address every time you use one. This can be repeated almost infinitely, and any past address can be used to receive tokens. Again, this is for your security.
Buy Bitcoin to Buy Elastos ELA on Huobi Exchange
As many of you will already know, you can’t buy most cryptocurrencies with US Dollars or other “fiat currencies”. You first have to buy Bitcoin (or other major currencies) with USD, then send the Bitcoin to the exchange that supports the coin you want to buy, then trade the Bitcoin for the coin you want. Go to Coinbase, CEX.io, Changelly, or Coinmama to buy Bitcoin.
Open Your Huobi Account
Start by going to Huobi.pro and clicking “Sign Up”. All this requires is to give your email, pick a unique password, and respond to the verification emails sent to you by Huobi. Now go to “Balances” > “Deposit & Withdraw”. Here you’ll find your Bitcoin wallet. Click on “Deposit” beside your “BTC” wallet. Copy the code you see here (like in the image below) and take it to the exchange where your Bitcoin is currently held. “Send” or “Withdraw” to that address and your Bitcoins should arrive in just a few minutes.
Trading Bitcoin for Elastos ELA
Now that your Bitcoin has arrived in your Huobi wallet, you’re ready to trade it for Bitcoin. Huobi trading operates just like trading on popular platforms like Bittrex and Binance, so it’ll be familiar if you’ve bought cryptocurrencies before. Here’s how it works in detail.
First click on “Exchange” in the upper left hand corner. This will take you to the page pictured below. Now click on “ELA” in the lefthand column of coins available for trade. This will bring up the ELA/BTC trading screen.
Now let’s focus on the “Buy ELA” menu and green button at the bottom of the screen. We’ll use this simple menu to trade Bitcoin for Elastos ELA. Here’s what it looks like close up.
The current Elastos price will already be filled in. Just set the amount you want to buy (or use the slider to use some or all of your Bitcoin). When you’re ready, click “Buy ELA”, and your order should be completed in a few seconds.
How to Send Elastos ELA to Your Elastos Wallet
It’s never a good idea to keep your coins on an exchange, even a good one like Huobi. Exchanges sometimes get hacked or have downtime, and you always want your coins to be safe. Head back to your Elastos Wallet (you can re-read the section above if necessary). Go to your addresses page and pick any address you see. Take this back to Huobi, and click on “Balances” > “Deposit & Withdraw”.
Click on “Withdraw” beside your ELA wallet. Paste your Elastos wallet address into the address line. Choose some or all of your Elastos ELA to send. Then click “Withdraw”. You’re done! Your Elastos ELA should arrive in your Elastos wallet in just a few minutes. [/su_note]
Final Thoughts on Elastos ELA
Elastos is a remarkable project with a real chance of changing the way the world uses blockchain. With deep development already completed, great partnerships in the bag, and support from the Chinese government, it seems like a no brainer that Elastos will have, at the very least, a significant run in the near future.
With a limited supply and public awareness, Elastos ELA remains a strong buy. Even at $80, this is likely a big bargain. Buy what you can while it’s still cheap and before it hits any major exchanges. It could be your last time to get two-digit ELA. Good luck!
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