Elements is a cryptocurrency designed as a universal loyalty system. Find out how it works today in our review.
What Is Elements?
Elements, found online at TheElements.io, aims to be “the future of loyalty”. The cryptocurrency is built on its own unique blockchain. That blockchain uses the X11 Algo (Digishield) and works on Proof of Work (PoW). The blocks are generated through PoW.
Overall, Elements aims to create a currency accepted by multiple merchants. Merchants can give away tokens as part of a loyalty system, for example.
Of course, there are other cryptocurrencies designed to function as loyalty programs for merchants. So what makes Elements different? One of the big problems with today’s loyalty points systems is liability: merchants have millions of dollars in liability in their loyalty points system. Some merchants even have billions of dollars of liability. If all customers cashed in their loyalty points simultaneously, it could sink the business.
With that in mind, Elements aims to help merchants reduce their liability by allowing them to mine Elements.
Meanwhile, customers can exchange their Elements for fiat and cryptocurrencies.
Elements Features And Benefits
Universal Loyalty: Elements will be a single currency accepted by multiple merchants, delivering an advantage to consumers and merchants alike.
Low Liability: Merchants (or anyone) can mine Elements for free and significantly reduce the cost of liability of their loyalty program.
Value Appreciation: As Elements’ merchant partners make transactions, fresh demand is created for Elements tokens – which have a finite supply. This will inevitably raise the unit price.
Low Transaction Fees: Like other digital currencies, Elements aims to appeal to customers with low transaction fees.
Controlled by Consensus: Consensus mining helps decentralize the network and avoid a central point of failure.
No Counterfeiting: All transactions are recorded on the immutable blockchain, which means customers can’t counterfeit their loyalty points or perform other scams. The blockchain provides a secure record of all loyalty points in the ecosystem.
Instant Transactions: Elements claims that its blockchain processes transactions instantly. Later on in the whitepaper, it’s revealed that the block time is 30 seconds – which is still pretty good.
No Chargebacks: Merchants can reduce chargebacks and liability through the use of Elements tokens.
Extensive Wallet Support: Elements plans to launch wallets for all major operating systems, including Windows, Mac OS X, iOS, and Android. The wallet’s source code will also be available on Github, and web wallets are available for those who don’t want to download anything. An Android app is already available through the Google Play Store.
Mining Rewards: Miners are rewarded 50 Elements tokens (ELMs) as a block reward. Users can mine tokens through the Elements mining pool, which you can view online through TheElements.io. There’s also a block explorer in place to provide complete transparency over the Elements blockchain. The Elements mining pool, by the way, claims to charge no fees.
What Problems Does Elements Seek To Solve?
The Elements whitepaper has identified a number of major problems in the loyalty points industry. Namely, loyalty program signups have increased 25.5% from 2015 to 2017, but more than half of consumers registered for loyalty programs never participate. Consumers are willing to register for loyalty programs, but will not actively participate in those programs.
That may seem like a good thing for merchants – but it’s not. All of those unused loyalty points represent enormous liability for the company.
Meanwhile, on the consumer side of things, consumers face an overwhelming number of loyalty points programs. Every merchant has their own individual loyalty points program. Consumers are left with dozens of different cards and memberships, but with no major benefits from those memberships.
The end result is that consumers don’t benefit from loyalty programs because they can’t cash in, while merchants don’t benefit from loyalty programs because customers never return to spend their loyalty points.
Elements aims to provide a better loyalty points ecosystem while reducing liability for merchants and increasing usability for consumers.
How Do ELM Tokens Work?
Elements tokens, or ELMs, come with the following features:
PoW Coins: 1,080,000,000
PoW Coins Per Block: 50 ELM
Maturity: 12 Blocks
Block Time: 30 Seconds
Max Coins Per Day: 144,000 ELM
Premine: 25% mined in first block
Of the 25% pre-mine, 10% of coins have gone towards supporting development, while 15% have gone towards marketing. A 25% pre-mine is considered high.
Who’s Behind Elements?
Oddly, the Elements whitepaper and website give us no information about who’s behind the platform, or who’s leading development on Elements.
However, the original BitcoinTalk.org forum thread was posted by a user named marcosteffen85, so he appears to be linked to the project in some capacity.
Elements was announced online in late September 2017.
Elements is a cryptocurrency designed to function as a loyalty points program between merchants. The cryptocurrency helps merchants reduce their liability by participating in mining. There’s a no-fee mining pool where you can generate your own ELM tokens.
Overall, there’s limited information online about how Element works, who’s behind the project, or how the platform plans to cater towards merchants and consumers. We know the general idea behind the project – like how they plan to launch a unified loyalty points program – but there are no specific details on how Elements plans to differentiate itself from its competitors.
You can learn more about Elements and ELM tokens by visiting online today at TheElements.io