Elastic Project, an open-source project to build a distributed supercomputer, is raising funds to continue development. In exchange, they are giving away some of their currency, XEL.
Elastic Coin provides the infrastructure for a decentralized and distributed computation of arbitrary tasks over the internet. In this context, Elastic Coin is built on-top of a crypto currency and provides a market-based mechanism to buy and sell computational resources. Buyers, those who need computational resources, model their problem using Elastic Coin’s software development kit and broadcast it, along with a certain amount of ELC coins, to the network. The so-called miners are then motivated to offer their computational resources in exchange for a portion of those ELC coins. The size of this portion depends on the amount of work a miner has contributed in relation to the rest of the network. Using ELC as the driving force, Elastic Coin offers potential buyers a large parallel computation cluster composed of many CPUs, GPUs, FPGAs and other devices supplied by the miners.
This transaction is being framed as a ‘donation ‘and 5 million XEL are being distributed among donors on a voluntary basis. The website contains many disclaimers: “Please do not consider Elastic Coins (XEL) to be shares, futures, certificates, securities, bonds, treasures, profit-sharing agreements, or anything similar. That is, do not expect any future rewards for your donation. Donating just means supporting the development of an open source project.” (bolding removed)
- Instructions on participating: After reading numerous disclaimers, send BTC the address listed on this page. XEL will be given the public address from which funds came, so don’t use an exchange, which will likely send funds from an address that you don’t own.
- Distribution: 5 million XEL (unclear how many of the total this will be)
- Escrow Used: Multi-sig wallet controlled by founder
- Rate: No rate given.
- Currencies used: BTC
- End: The ‘donation period’ will end at Bitcoin block 425920 – approximately 2pm New York time on August 20, 2016.
- Proof of work for user-defined functions. Computational resources from ‘miners’ will be used to solve arbitrary problems modeled with Elastic’s development kit.
- ‘Sellers’ will sell computational resources to the network, while ‘buyers’ will model problems and purchase computational resources in XEL from the network to solve them
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