What is an Elastic Coin?
Elastic Coin (XEL) is a revolutionary open source project that aims to create a decentralized, untrusted supercomputer through the use of cryptography and blockchain technology. It involves the formation of an integrated platform that can perform a variety of tasks that require computational resources. All processes are performed on a peer-to-peer basis on the Elastic platform.
Elastic Coin offers a versatile and flexible system that replaces hard-coded scenarios with self-programmable tasks. This is made possible by the ElasticPL’s own programming language. The system provides unrestricted access to computing resources at all times, from anywhere, while maintaining confidentiality and anonymity.
The components of Elastic Coin
In addition to its own dedicated blockchain, the system contains three main components: the main client, the XEL Miner, and the ElasticPL programming language. The Elastic platform uses its internal XEL token: the Elastic Coin. XEL serves as a settlement system and as a medium of exchange to reward miners with pro-rata payments for the provision of computer capacity.
Elastic is a project with a source code to create the first distributed supercomputer. Elastic Coin works with the cryptocurrency XEL and provides a market mechanism for buying and selling computer resources.
Those in need of powerful computational resources model their task using the Elastic Programming Language and translate it across the network, along with a specific number of XEL coins. This motivates miners to make their computing resources available against some of these coins.
The story of Elastic Coin begins with the fact that from February 29, 2016 to August 19, 2016, they raised funds for their project and eventually collected about 710 BTC. One hundred million coins were distributed, in proportion to the collected donations.
Almost immediately afterwards, one of the main developers disappeared, along with the collected money. It seemed that the project had to be abandoned.
But the project did not die; it lives and is being actively developed, thanks to three developers who have maintained their enthusiasm and ideas, and made tremendous progress. The community supports the project and plans to create a fund to provide some financing for further development of the project.
Despite the fact that the guys work with pure enthusiasm, they are ahead of other projects. They are doing their favorite work, and they enjoy it. Elastic has many competitors in the market, the most famous of which is Golem.
What are the benefits of Elastic Coin?
Competitors mainly use and rely on third-party centralized services (e.g. Berkeley Open Infrastructure for Network Computing) for their work. When the service stops working, the blockchain system itself does not work.
Other competitors do not track or check the miners and push this task to the customers, or they introduce a rating system in which the customers themselves rate the service providers. In the same protocol, Elastic already has an integrated verification mechanism (in the white paper you can read about the finer technical aspects).
Comparing Elastic (XEL) to its largest competitor, Golem (GNT)
With a capitalization of $252 million and a coin value of $0.30, Golem is very far from a current product. Elastic plans to release a working version very soon. A supporting video has been created by one of the developers. He has written a working program to mine Bitcoins on Elastic.
Elastic provides the infrastructure for decentralized and distributed computing of arbitrary tasks over the Internet. In this context, Elastic builds on a cryptocurrency and provides a market-based mechanism for buying and selling computer resources.
Buyers who need computing resources model their problem with the Elastic software development kit and send it to the network, along with a certain amount of XEL coins.
The so-called miners are then motivated to offer their computing resources in exchange for some of these XEL coins. The size of this share depends on the amount of work a miner has done, relative to the rest of the network.
With XEL as the driving force, Elastic offers prospective buyers a large, parallel computing cluster consisting of many CPUs, GPUs, FPGAs and other devices supplied by the miners.
There are 100 million XELs. These are distributed among the original donors to the project. So far, 70 million have been redeemed. These (or at least some of them) are made available to a larger audience through the major stock exchanges.
Buyers then purchase from there to pay for their arithmetic tasks. XEL is just a token, not a smart contract, and has no ability to attach a smart contract. XEL is literally just the fuel of the system.
Having paid, the buyer (or the ordering party) then sends their work (written in Elastic PL) along with the necessary XEL to the Elastic system.
Perhaps other projects are slightly better in some respects, but in development, they are all far behind. When Elastic releases a working version soon, there will be a big boost in the token price and a lot of money will go there. When the community invests in a project, investors see it as an important step in the development of the entire venture.
This means that Elastic will receive financial support for further development, which is also positive. If all this happens this year, the capitalization will grow several times and the coin will have good growth prospects.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.