The number of internet users has increased more than tenfold from 1999 to 2016. With an increasing number of users, the number of devices—each equipped with a processor— that is connected to the Internet increases as well. As most of these users are within the scope of non-technical and normal user activity, it can be assumed that, at any given moment, most of these devices are idle.
It is not a new idea to bundle these idle processors and distribute the computational resources among various problems that require large computational power. In fact, this movement has enabled previously infeasible research to be accomplished. Furthermore, with the growing adoption of cryptocurrencies such as Bitcoin, where solving puzzles that are intentionally designed to be resource-intensive is rewarded with a certain number of coins, supercomputing.
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 cryptocurrency 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. All at a fair and market-driven price.
Elastic Coin constitutes a market that matches buyers and sellers of computational resources according to economic criteria. Buyers, in this context, are those who demand computational resources in order to solve some arbitrary and computationally intensive task. They submit their task to the network and attach a certain amount of ELC—that is the currency of Elastic Coin—to it.
Then, sellers, in the remainder of the paper termed miners, are then motivated to offer their computational resources for solving these tasks in exchange for a portion of the attached ELC. The size of this portion depends on the amount of work a miner has contributed in relation to the rest of the network. All this happens “behind the scenes” in a process termed mining without the requirement of manual intervention.
More information about how XEL Mining can be can be used is demonstrated in this video. Technical aspects are available on their Whitepaper and GitHub.