What is Elastos (ELA)?

Deep Dive

1. Purpose & Value Proposition

Elastos reimagines the internet as a decentralized "SmartWeb" where users own their data, apps run locally on devices, and interactions are trustless. Unlike Web2 platforms that monetize user data, Elastos uses blockchain to return control to individuals, enabling private data storage, decentralized identity management, and direct peer-to-peer transactions.

2. Technology & Architecture

Elastos leverages merged mining with Bitcoin, sharing up to 50% of Bitcoin’s hash power to secure its network (TheStreet). This allows Bitcoin miners to validate Elastos blocks without extra effort, earning ELA rewards. Its BeL2 protocol acts as a Bitcoin Layer 2, enabling smart contracts and DeFi tools like BTCD—a Bitcoin-collateralized stablecoin that uses zero-knowledge proofs for real-time reserve verification (Elastos).

3. Ecosystem Fundamentals

Elastos’ BTCFi ecosystem targets Bitcoin’s underutilized $500B+ liquidity. BTCD lets users mint stablecoins against locked BTC, accessing DeFi without selling Bitcoin. The Elastos Smart Chain supports tokenized assets (e.g., media, AI services), while projects like Elacity explore wallet-less smart accounts and decentralized licensing.

Conclusion

Elastos is fundamentally a bridge between Bitcoin’s security and a decentralized internet, prioritizing user sovereignty and Bitcoin-centric DeFi. With innovations like BTCD challenging Ethereum’s DeFi dominance, will its Bitcoin-native approach redefine how value moves in Web3?