What is ELA?

Question

What is ELA?

Accepted Answer

## TLDR
Elastos (ELA) is a blockchain project building a decentralized internet, often called a "SmartWeb," where users own their data and identity, and it uniquely leverages Bitcoin's security to power a new financial ecosystem.

1. **A Decentralized Internet Vision** – It aims to create a user-owned web alternative to today's centralized platforms where data is controlled by corporations.
2. **Bitcoin-Native Security** – Its mainchain is secured through **merge-mining** with Bitcoin, inheriting immense security from Bitcoin's hash power.
3. **BTCFi Ecosystem Catalyst** – It enables Bitcoin-based decentralized finance (DeFi) through its BeL2 layer-2 and the Bitcoin-backed stablecoin **BTCD**.

## Deep Dive
### 1. Purpose & Vision: Building a User-Owned SmartWeb
Elastos envisions a decentralized internet where applications run on user hardware and data ownership returns to individuals, contrasting with the centralized, data-exploitative model of Web2 ([Elastos](https://x.com/ElastosInfo/status/1953218964206588052)). This "SmartWeb" is designed to be trustless and peer-to-peer.

### 2. Technology: Bitcoin Merge-Mining & BeL2
Elastos's key innovation is **merge-mining** with Bitcoin, allowing Bitcoin miners to secure the Elastos chain simultaneously and earn ELA rewards, leveraging up to 50% of Bitcoin's hash rate ([Yahoo Finance](https://finance.yahoo.com/news/more-bitcoin-mint-stablecoins-generate-010900033.html)). This provides exceptional security, earning it the community moniker "BTC Queen." Its **BeL2** is a Layer-2 solution that brings smart contract functionality to Bitcoin, enabling complex DeFi applications.

### 3. Ecosystem & Use Case: Unlocking Bitcoin for DeFi (BTCFi)
Elastos's primary use case is expanding Bitcoin's utility into decentralized finance. Its flagship product is **BTCD**, a fully Bitcoin-backed, over-collateralized stablecoin pegged to the US dollar ([Elastos](https://x.com/ElastosInfo/status/1940008798631969269)). This allows Bitcoin holders to generate liquidity (by minting BTCD) without selling their BTC, aiming to unlock hundreds of billions in dormant Bitcoin value for a new "smart economy."

## Conclusion
Elastos is fundamentally a bridge between Bitcoin's robust security and a new decentralized internet economy, using its unique merge-mined architecture to enable novel Bitcoin-centric financial applications. As its ecosystem develops, will its vision of a user-owned web powered by Bitcoin's security reach mainstream adoption?

What is Elastos (ELA)?

Deep Dive

1. Purpose & Vision: Building a User-Owned SmartWeb

2. Technology: Bitcoin Merge-Mining & BeL2

3. Ecosystem & Use Case: Unlocking Bitcoin for DeFi (BTCFi)

Conclusion

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