Sunday, June 10, 2018

Bithumb Cleared of Accusations by South Korean Authorities

June 10, 2018 Read in Browser
Blockchain Brew
quote-left-filled.pngQUOTE OF THE DAY quote-right-filled.png
"The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge."
- Stephen Hawking

Happy Sunday! It's been revealed that 21 Savage, the rapper, is attempting to build his cryptocurrency portfolio. If that isn't bullish news, we don't know what is.

Cheers,
Blockchain Brew Team

MARKETS
COIN PRICE 24H

BTC $7,229.43 -5.18%

ETH $566.729 -6.16%

XRP $0.622093 -6.9%

BCH $1,027.02 -7.91%

EOS $13.0557 -9.68%

*Information as of 9:30 AM EST


EXCHANGE

Bithumb Cleared of Accusations by South Korean Authorities

BITHUMB

  • Bithumb is a cryptocurrency exchange based in Seoul, South Korea
  • The exchange is the largest cryptocurrency exchange in South Korea, a country crazed by cryptocurrency
  • According to Coin Market Cap, Bithumb is the 7th largest cryptocurrency exchange in the world by daily volume with almost $200 million traded each day

INVESTIGATION

  • In January, multiple Korean agencies, including the National Tax Service, Financial Services Commission, and Korea Financial Intelligence Unit, opened an investigation into Bithumb
  • Authorities were investigating Bithumb for tax evasion and suspicious business activities
  • Computer files, devices, and other information was seized by authorities for investigation

CLEARED OF ACCUSATIONS

  • After three months of investigating, South Korean authorities have finally come to their conclusion, Bithumb had no wrongdoings
  • Even though they were acquitted of all accusations, Bithumb was still ordered to pay $28 million in taxes
  • A spokesperson form Korea's National Tax Service said the agency has "initiated several investigations into Bithumb between 2014 and 2017, and over the past four years, Bithumb has continuously paid all of the taxes imposed to the company without any conflict with the NTS”

REGULATION

ICO's Are Not Self-Reporting to the SEC

SECURITIES

  • The Securities and Exchange Commission has repeatedly preached that most initial coin offerings are indeed securities and must register with the Commission and follow imposed regulations
  • They have also said that they will not modify the securities framework to accommodate ICO's, meaning ICO's must follow the same regulations as traditional securities

WAIT AND SEE

  • Many ICO founders are taking the wait and see approach, waiting for the SEC to make a more clear ruling on ICO regulation and not registering as a security
  • The SEC is not changing its stance on ICO regulation, even though ICO's are not self-reporting
  • The Commission plans to become more strict on ICO's this year, sending more cease and desist orders and going after exchanges that trade ICO securities that did not report with the SEC

SEC Director of division of trading and markets, Brett Redfearn, told CNBC:

“We’re underwhelmed by the enthusiasm for coming within the regulatory structure right now. There are a number of exchanges that are trading ICOs that I would think that we would see more registrations.”


RESEARCH

New Bank Report Finds 1 in 3 Germans See Cryptocurrencies as an Investment Opportunity

29% ON BOARD

  • In a new report released by Postbank, 3,100 Germans were interviewed from February to March of this year
  • Of the 3,100 people interviewed, 29% believe that cryptocurrencies are a desireable investment opportunity

YOUNGER INTEREST

  • Not surprisingly, the younger generation, specifically 18-34 year-olds, is most interested in cryptocurrencies and accounts for 46% of the interested population
  • In addition, 14% of this generation are planning on buying or mining cryptocurrencies within the year
  • However, although there is much interest among the younger generation, this demographic only accounts for 8% of the general German population, marking low interest overall

WARNINGS

  • With high interest among younger individuals seeking riskier assets than previous generations, Dr. Thomas Mangel, Postbank Chief Digital Officer, warned millenials to not completely concentrate on cryptocurrencies

Mangel believes the media has created a false narrative for cryptocurrencies and their native risk:

"Due to the media hypes, many people overestimate their knowledge of the opportunities and risks of cryptocurrencies as an investment"


NEWS

Tom Lee Believes Bitcoin is the Next Step for Banks

MOVE INTO EXCHANGE

  • Earlier this week on CNBC, Tom Lee of Fundstrat explained that as the regulatory environment is evolving to accept cryptocurrencies, banks should look into becoming exchanges
  • Lee makes a good point stating that Coinbase and Binance, which have close to a 2-3% market share, make close to $1 billion while a traditional bank like Goldman Sachs has made $8 billion over the past 12 months
  • Lee explains that exchanges provide a lucrative opportunity to expand profits for traditional banks

LESS SPECULATION THAN EXPECTED

  • Lee also explained that Bitcoin has far less speculation than expected and are actually being used to transact value
  • Referencing the ease of transaction, Lee stated that Bitcoin is far easier to transfer money across borders than going through a traditional transaction

CONCLUSIONS

  • It is well known that Lee is a very bullish supporter of Bitcoin and this has allowed him to have some lofty price predictions in 2018
  • Another point is that though Bitcoin is easy to transact, Lee missed a crucial downfall of the currency and that is volatility
  • Still, Lee makes some solid points regarding banks jumping into Bitcoin in order to gain a position if crypto becomes mainstream

TODAY IN CRYPTO

Today in Crypto is powered by coinmarketcal.com


MORE BREWING
  • Study Shows That 1/3 of All Bitcoin Owned by 1,600 Wallets
  • Blockchain Tech Will “Change the World,” Says ShapeShift CEO Erik Voorhees
  • Blockchain Games Have Got a Long Way to Go

COIN OF THE DAY
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CyberVein (CVT)
The CyberVein network is the first Distributed Ledger System allowing for the decentralized management of complex datasets on the blockchain itself, without requiring centralized storage providers. Just as the Internet is a public network of networks, CyberVein is a public network of immutable databases, on which information can easily be traded, interconnected, and transformed into structured knowledge.
WEBSITE | TWITTER | REDDIT

MEME
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SUBSCRIBE | FEEDBACK | ADVERTISE
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The above is not intended to be investment advice.
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Saturday, June 9, 2018

Daily Coin Update - Sunday, June 10th 2018

Daily Coin Update

Sunday, June 10th 2018

Coin Value 24h Change 24h Volume Mkt Cap
(BTC) Bitcoin $7,313.68 -4.69% $4b $125b
(ETH) Ethereum $574.98 -5.34% $2b $57b
(BCC) BitConnect $0.5758 +19.7% $1k $6m
(XMR) Monero $148.03 -7.32% $34m $2b
(DASH) Dash $286.71 -7.78% $77m $2b
(XRP) Ripple $0.6392 -5.64% $219m $25b
(NEO) NEO $49.33 -7.09% $78m $3b
Missing something? Comments? Suggestions? Email me at ohad@ohadron.com

Third Largest Crypto Exchange Huobi Expands to United States

June 9, 2018 Read in Browser
Blockchain Brew
quote-left-filled.pngQUOTE OF THE DAY quote-right-filled.png
"If you're looking for a home run -- a great investment for five years or 10 years or more -- then the only way to beat this enormous fog that covers the future is to identify a long-term trend that will give a particular business some sort of edge."
- Ralph Wagner

Happy Saturday! Thank you to all of those who are subscribed and take the time each day to educate themselves about cryptocurrencies and blockchain. It is truly special what we are a part of. We are witnessing history.

Cheers,
Blockchain Brew Team

MARKETS
COIN PRICE 24H

BTC $7,601.76 +0.3%

ETH $601.324 +0.65%

XRP $0.665607 +0.04%

BCH $1,111.35 +0.33%

EOS $14.3317 +3.32%

*Information as of 9:30 AM EST


EXCHANGE

Third Largest Crypto Exchange Huobi Expands to United States

HBUS

  • Yesterday, Finance Magnates reported that the Chinese-founded exchange Huobi has plans to open a new U.S. trading platform called HBUS
  • In a Medium post, HBUS expressed the fact that it will not be an "arm" or "subsidiary" of Huobi, but rather an independent "strategic partner"
  • HBUS will be conducting a soft launch on June 10th with official trading set to start on June 15th

MOVE INTO U.S.

  • Amongst cryptocurrency exchanges catering to retail investors there is agressive competition and exchanges have been expanding rapidly into new markets to stay ahead
  • This move from Huobi to jump into the United States is bold since U.S. regulators have been strict on crypto exchanges
  • To operate properly, HBUS will have to comply with strong anti-money laundering and counter-terrorism financing policies

BOLD MOVES

  • To keep up with the leading rival exchanges Binance and OKEx, Huobi has been making some bold moves recently
  • Along with the HBUS partnership in the U.S., Huobi has launched a crypto-based exchange traded fund (ETF), announced the launch of its new public blockchain, and entered into a partnership to launch an investment fund focused on blockchain startups

RESEARCH

Report Finds There Is Now As Many Speculators and HODLers

WEAK HANDS

  • According to research done by the Financial Times, using data from Chainalysis, the number of short term investors in Bitcoin is reaching the number of long term investors
  • It is estimated that the number of Bitcoins held by day traders is around 5.1 million in comparison to 6 million Bitcoins that have been held for more than a year
  • The data also shows that the volume of Bitcoin trading has fallen drastically since Bitcoin reached its peak in December, which is theorized to be a reason for the price decline
  • The date also shed light on the “Bitcoin wealth list” and determined that 1,600 addresses own roughly 1/3 of all Bitcoins

WHAT THIS MEANS

  • People have speculated that the price of Bitcoin is being manipulated by some big players and Coinalysis’s data backs up this theory
  • These findings could be the result of institutions entering the game and if that is the case, the real big determinant of the potential for Bitcoin’s price to rise past all time highs is regulation

NEWS

Baidu Announces Interstellar Blockchain Game

BAIDU

  • Baidu is a Chinese based internet services and products company, that is known as the 'Chinese Google' as it is the main search engine used in China
  • The website is currently ranked as the 4th most popular website by the Alexa Internet rankings

PRIOR INTEREST IN BLOCKCHAIN

  • Earlier this month, Baidu revealed its 'Super Chain' protocol with the goal of reducing mining energy consumption
  • Before the birth of 'Super Chain', Baidu launched its Blockchain-as-a-Service product and the 'Super Chain' protocol is another addition to its service

DU YUZHOU

  • Baidu’s next venture into the blockchain space is a blockchain powered game called Du Yuzhou (translates to The Universe)
  • The game involves users building their own planets with elements on the blockchain
  • When the game starts, users will be airdropped 100 random elements to start their planet
  • The goal of the game is to build a bigger and bigger planet to attract more elements via gravity

Baidu describes the game as:

“An open blockchain interplanetary journey, a magical world made up of all kinds of rare elements.”


NEWS

On Friday, CFTC Commissioner Rostin Behnam spoke at the BFI Summit “Fostering Open, Transparent, Competitive, And Financially Sound Markets” at the United Nations, here is an excerpt about what he had to say about cryptocurrencies:

“The debate on virtual assets is just beginning. None of us know where it will end. But it has forced us to rethink. We have learned that virtual assets respect no borders. Regulation is often behind the curve, unable to keep up with daily developments. At least the developments we know about. As a result, some countries have outlawed virtual currencies. Others have new, strict laws to control them. Many countries simply don’t know what to do. Their policy is bewilderment. Or avoidance. And, some countries think virtual currencies are only a problem for developed countries like Switzerland, or Germany, or Singapore, or the United States.
But virtual currencies may – will – become part of the economic practices of any country, anywhere. Let me repeat that: these currencies are not going away and they will proliferate to every economy and every part of the planet. Some places, small economies, may become dependent on virtual assets for survival. And, these currencies will be outside traditional monetary intermediaries, like government, banks, investors, ministries, or international organizations.
We are witnessing a technological revolution. Perhaps we are witnessing a modern miracle. Virtual currencies could transform the economic and social landscape. It could mean a massive, and equitable, shift of wealth. Technology could be transformational, without a military take-over, civil war, or political or religious creed.”

Read the commissioner's full speech here


TODAY IN CRYPTO
1958.png
TRON (TRX)
BitForex lists TRX. Trading begins at 4PM (GMT+8).
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Binance Coin (BNB)
World Blockchain Forum Singapore from June 8-9 in Singapore.
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Cortex (CTXC)
19:30 ~ 21:30, Dreamplus Gangnam.

Today in Crypto is powered by coinmarketcal.com


MORE BREWING
  • Wall Street’s ‘Crypto King’ Says Regulatory Clarity Will Jump-start Institutional Investments
  • Huge Bitcoin Whale With 94,947 BTC Transfers Crypto Onto an Exchange, Rattling Nerves
  • China as a Prime Example of “Blockchain Before Bitcoin” Policy

COIN OF THE DAY
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Paypex (PAYX)
Paypex іѕ a рlаtfоrm that еmроwеrѕ & еnhаnсеѕ thе рауmеnt ѕуѕtеmѕ based оn Ethеrеum blосkсhаіn tесhnоlоgу аnd ѕmаrt contract. Inсrеаѕе the еffісіеnсу, decrease thе соѕt оf money transfers аnd ѕеnd оr rесеіvе сrоѕѕ-bоrdеr payments іnѕtаntlу.
WEBSITE | TWITTER | REDDIT

MEME
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SUBSCRIBE | FEEDBACK | ADVERTISE
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The above is not intended to be investment advice.
1317 8th Street SE, Minneapolis, MN 55414.
If you don't absolutely love us, drop us, click here.
Copyright © 2018 Blockchain Brew, All rights reserved.

Friday, June 8, 2018

Daily Coin Update - Saturday, June 9th 2018

Daily Coin Update

Saturday, June 9th 2018

Coin Value 24h Change 24h Volume Mkt Cap
(BTC) Bitcoin $7,669.85 +0.22% $4b $131b
(ETH) Ethereum $607.05 +0.39% $2b $61b
(BCC) BitConnect $0.5663 -15.64% $2k $5m
(XMR) Monero $159.34 -2.77% $36m $3b
(DASH) Dash $310.87 -1.14% $71m $3b
(XRP) Ripple $0.6768 +0.63% $219m $27b
(NEO) NEO $53.04 +0.22% $76m $3b
Missing something? Comments? Suggestions? Email me at ohad@ohadron.com

Elastos Weekly Updates — 08 June 2018

And what he greatly thought, he nobly dared.
— Homer

This weekend Elastos is headed to Hollywood. A place that is no stranger to the art of telling the epic journey…we should fit right in.

This week also saw a partnership ioeX, another internet of things platform, which all of us now know are at the center of our global future.

What's Feng Han up to? Just helping to support the next generation of blockchain experts by setting up an Elastos scholarship program at the University of Chicago.

Last, but not least…we're coming to Europe.

Elastos continued its forward momentum this week. Let's recap.

Technical Dynamics

1. NodeJS SDK added streaming support to example chat-app

2. New JSON RPC 2.0 API documentation for Elastos ELA

Please check out our Github links:

https://github.com/elastos/Elastos.Community

https://github.com/elastos/Elastos.Community.Global

Community News

• The Elastos Video Contest deadline is July 15th. https://medium.com/elastos/elastos-video-contest-final-version-5efb9fbebf19https://bitcointalk.org/index.php?topic=3089082.0#post_a2

• The Fresco Art Award competition is now open. The competition runs through August 22nd https://medium.com/fresco-network/introducing-fresco-art-award-the-worlds-first-blockchain-art-award-f94294925413

June 3

Feng Han gave a presentation at 2018 Global Digital Asset Vancouver Summit.

Link: https://twitter.com/elastos_org/status/1004011681238978561

June 4

Elastos partnered with ioeX at a signing ceremony at the Shanri-La Hotel in Taipei.

Feng Han gave a presentation at Impact Blockchain Summit 2018 in Vancouver.

Link: https://twitter.com/elastos_org/status/1004199567330545665
 

June 7

Feng Han visited the University of Chicago to create a scholarship fund that will help support the next generation of top blockchain and computer science experts. The Elastos fund will help support graduate students at the Department of Computer Sciences over the next 5 years. Feng's goal is to help train the best students and have them contribute to the Elastos open source community and ecosystem.
 

Meetups and Events

 

LA

Elastos will host an event with Fresco and Viewchain on June 10th at the Globe Theater in Hollywood. Speakers include Rong Chen, Roy Huang of Fresco, Frank Wang of DewMobile (Zapya), and Hanh Cho who is an innovator in the field for over 25 years and an advisor to WeatherBlock.

A panel discussion will include blockchain for entertainment, art, and digital assets.

Link: https://www.meetup.com/LA-blockchain-fintech-cryptocurrency/events/251276279/
 

Vietnam

Elastos will host a meetup in Ho Chi Minh City on June 19th.

Link: https://www.elastos.org/meetupvietnam/?source=twitter


Hong Kong

Elastos will host a meetup in Hong Kong on June 21st.

Link: https://www.elastos.org/meetuphk/?source=twitter


Europe Tour

Elastos is coming to Europe in June and July. Additional details with times and locations will be released.


London

Elastos will be WeWork Moorgate on June 19th.


Barcelona

Elastos will be in Barcelona on June 21st, location TBD.


Zurich

Elastos will be at Trustsquare, a blockchain incubator space on June 23rd


Berlin

Elastos will be at Factory Berlin on June 25th.


Amsterdam

Elastos will be at Blockchain Expo Europe 2018 in Rai on June 27th and 28th.

Link: https://blockchain-expo.com/europe/

Elastos will also be at Impact Hub Amsterdam on June 29th.


Ghent

Elastos will be in Ghent, Belgium on July 1. Location TBD.


Paris

Elastos will be in Paris on July 4th. Location TBD.

 

Community Contributions

KP posted to Reddit an early prototype of how an Elastos DApp would run on a smart phone.

Link: https://www.reddit.com/r/Elastos/comments/8nuabw/early_prototype_of_how_an_elastos_dapp_would_run/?st=JHWS7OJZ&sh=c10f3793&utm_source=share&utm_medium=branch_ios_app&_branch_match_id=479674914265531721
 

KP also posted to Medium and Youtube "Elastos Architecture: The main chain, sidechains and friendchains."

Link: https://medium.com/@kiran.pachhai/elastos-architecture-the-main-chain-sidechains-and-friendchains-3727ef477d8e

Link: https://www.youtube.com/watch?v=AM-cr7tRN5s&feature=youtu.be
 

Kevin Zhang gave a demonstration for an early prototype of the Trinity browser during last week's Virtual Meetup.

Link: https://youtu.be/3WR93iuXZ18?t=57m41s
 

The Crypto Lark posted a video with an interview with Kevin Zhang about Elastos.

Link: https://youtu.be/_zKQDW3TYaY
 

Amos from Chill Zone International posted a video on youtube called, "Elastos in 15 minutes or Less"

Link: https://www.youtube.com/watch?time_continue=1&v=obprlaqUQio
 

Jeremy from God Country Crypto posted a review of the Elastos Weekly Update.

Link: https://www.youtube.com/watch?v=OSD1sAm0XOI&t=305s
 

Elastos Partners with ioeX

On June 4th Elastos partnered with ioeX.

ioeX is an internet of things decentralized peer to peer platform that allows smart devices to connect and enable software updates without the use of an OTA server. The company estimates it can save the industry billions of dollars per year.

Elastos and ioeX share a common interest and ability to run on all smart devices in the world.

Link: https://medium.com/elastos/elastos-partners-with-ioex-379982cf0249

Thoughts and Conclusions

Sing to me Muse of the man of many gifts, 
who was driven on many twists and turns, far and wide, 
after he left the embattled internet of that distant age.
Many flaws he saw and many fixes he devised, 
many nights he pondered on the open sea, 
fighting to save our network and protect our rights, 
our ideas, our safety, and set us free.
But he could not convince his comrades then, 
as hard as he did try, 
for the Gates were shut in their gated minds. 
Their narrow views made them blind like fools, 
and as they built the internet, the internet Gods becried. 
Launch out this story Muse, daughter of our cyber eyes, 
sing to us of this man who will return us home, 
with his cyber gift for our cyber time.

On this tenth thoughts and conclusions section, it seems a fitting time to take a look back to one of the earliest tales in all the world, of a man who left for war for ten years and took another ten to return home. It is time to tell a story, this time, in Homeric fashion, of a man coming home from a different kind of great battle. Rong Chen has been walking home for 18 years. Walking home not just to his life's work, but to a home for all of us. Elastos is like a Homeric epic. Rong Chen is our Odysseus. The internet of the past is our Trojan War — and the creation of Elastos is our journey home.

Rong Chen was born into a family of scientists. According to him, the keywords of his life and career have been,"epiphany, perseverance, gratitude, luck."

In 1977, after a decade long chaos that was known as the Cultural Revolution in China, college entrance examinations were resumed for the first time since 1965. To make up for the prolonged gap of education and opportunity that plagued China during these years, citizens from ages 13 to 37 were allowed to take the exam. This was not only a chance at freedom, but at escape. The build up and bottleneck of talent in China led to 5.7 million people taking the exam in November and December of 1977, in what is considered possibly the single most competitive scholastic test in the history of modern China. Only 4.7% of people who took the test, or 273,000, were admitted to universities. This class of 77' would become known as the best and the brightest of their generation. From artists, to politicians, to engineers, to this day, the class of 77' includes many of the most elite citizens of China who have gone on to succeed at the top of their society. This was a single moment for those who dreamed of a better life and wanted to make a desperate plea for advancement.

Rong Chen was one of the 4.7%. In fact, his scores were top notch and he was admitted to Tsinghua University. He became not only one of the first people in China to receive a college degree after the Cultural Revolution, but became one of the first people in the history of China to become a software development graduate. After Tsinghua University, Rong went on to study at the Institute of Computing Technology of the Chinese Academy of Sciences. Founded in 1956, it was the first school to specialize in computer sciences in China.

On January 4, 1984, feeling both luck and gratitude, Rong Chen stepped off of a plane in New York City at John F. Kennedy International Airport. From there, he began his education in operating systems. Rong was admitted to the University of Illinois at Urbana-Champaign, which in the mid-1980's began a state-federal partnership to become home of The National Center for Supercomputing Applications, leading the university to house some of the best supercomputers in the world to this day. Supercomputers…remember that term.

Rong's 7 years studying operating systems was backdropped by a time in computing history that included UNIX operating systems beginning to become open source for many top American universities and the arrival of a new coding language called C++. Rong Chen was captivated by this new language. It was…an epiphany.

Rong studied and studied, even staying up at night to read hundreds of thousands of lines of operating system code. He began designing his own operating systems in those years. He was obsessed, singularly, with this new and beautiful language.

In 1992, Rong began work at Microsoft Research as the first Chinese employee in its history. His work was in writing for the research of operating systems. Within a few years, Microsoft's browser and Windows converged to monopolize the market and the PC internet. But there was a fatal weakness, and Rong saw it.

Computers around the would were vulnerable. Hackers. Viruses. Attacks. These were not going away. Money was being lost.

Rong's team began to work on solutions. His team were some of the best programmers in the world at a time when the internet was beginning to take off in a global way. Yet even among his elite team at Microsoft, Rong had ideas that were extremely advanced.

An idea emerged from their work.

"The network is the computer."

It was the concept of designing an operating system that made the network into a large computer, with the operating system solving the security problems. The project became known as ".NET"

This idea, of a network computer and a world computer coming together was the first seed of what would later become Elastos.

Up until then, Microsoft's operating system was Windows 2000, which would later become Windows XP. These are stand-alone operating systems which are very different than network operating systems. .NET was the idea of a network of operating systems connecting together.

Rong now saw the battlefield, the war torn landscape of the future of the internet filled with viruses and attacks, and he proposed something to save it. He would write .NET in C++. He would create the network operating system.

But his proposal was rejected — and in 2000, he left the war behind, and returned to China to begin work on his own idea, alone.

While Odysseus devised the idea for the Trojan Horse, Rongysseus devised the way to stop them.

Thus began the twists and turns of his epic journey. Rong believed he could complete his virus-free operating system within three years, but did not take into full account that it would need to go onto hardware, and that meant competing with giants who wanted their own operating systems and their own hardware.

Now home again, it was the early days of the internet in China. William Ding, Founder and CEO of NetEase, had just registered his first domain name. Pony Ma, CEO of Tencent, was trying to sell his QQ with no success. Even Jack Ma, who was giving passionate speeches about the internet and e-commerce was met with disbelief. No one believed him about the future of the internet. In fact, they called him a liar. But these men, like Rong Chen, were men of perseverance. Men who would prove people wrong.

Rong assembled some classmates from Tsinghua. He said of the time, "Starting portal sites and doing e-commerce was not enough to quench our thirst. We wanted to do the most difficult task by developing the first set of operating systems." They made plans to develop an embedded operating system called, "Hexin," and to complete it in three years time. They would take down the monsters and be home in no time. Or so they thought.

There were many who doubted their vision. Calypso-like voices who tried to convince Rong and his team that they should stop their journey, that the landscape was too tough, and should instead, stay on their little island for the seas of the domestic market were too rough to sail.

But Rong and his team continued, and in 2003 finished Hexin and were visited by President Hu Jintao. Programmer Magazine declared Rong part of their, "20 people who influenced China's software development." It was a list of some of today's most important programmers.

Rong became the first person in China to create an operating system.

But the twists and turns continued. In 2003, because of State policy changes, investors withdrew capital from the team of more than 100 people and Rong found himself in a tight spot, like being trapped in a cave with a Cyclops. His team were low on funds, and just when things became dire, the Shanghai government reached out with an offer to help them with mobile phones. They agreed.

Rong and his team continued to work until 2006 and completed their operating system in C++. They now had an OS that could be installed onto any hardware. With this OS, network requests would be handled by the operating system itself instead of the applications, thus blocking applications from creating background processes and preventing man in the middle attacks and many viruses that are spread through the use of background processes on a device. Applications would now be prevented from direct access to the internet. This would later become the Elastos OS.

By 2006, when the smartphone was launched in China, Rong and his team had designed all of the software, the kernel, the interface, and the functionality. The phones were a success. But by 2007, Rong found out that Apple and Google were also releasing smartphones with operating systems…and it was then that he said to himself, "I know it's over."

His new operating system would need to go onto hardware to succeed, and this meant competing with companies whose means were far too great at the time.

"Both Apple and Google are rich companies that we couldn't match from a hardware and ecology standpoint. Building an operating system exceeds the capacity of a person, a company, or even a local government…. We were not prepared psychologically and financially. We also lacked hardware capabilities at that point."

Within four years, his company was in an even tighter spot financially. They took an investment from Foxconn and Rong temporarily stopped working on the product design of the operating system, but refused to part with his native code. Until 2012, his team worked on mobile customizations for Foxconn and outsourced work for Android. They learned a lot about the Android system.

Then, in 2012, Rong found out that Microsoft was pursuing his original idea that he gave to them to rewrite .NET into C++. He proposed to Terry Gou at Foxconn that he create an open source industrial internet operating system by rewriting Android into C++ with end-to-end security. Foxconn agreed to invest.

Rong and his team began rewriting the Android code, which used the Java language, into C++, thus allowing him to run Android applications on a C++ device, or any device.

This code evolved into a virtual machine in C++.

A little background. An operating system is a piece of software that can control the hardware of a computer. A virtual machine is an emulation of a computer system, yet it can run within an existing operating system. It is like a computer within a computer, that can be installed on top of existing operating systems without replacing them. Rong realized that this could be the ticket to circumventing the monopoly that the giants had. They controlled the process of getting their operating systems onto the major hardware providers in the world, but a C++ virtual machine would not have to compete with them for hardware, but instead, could go on top of their software.

At the time, there was already a Java virtual machine in existence, but there was a problem with it. With a Java virtual machine, you can only write code for its use, in Java. This means that every machine would need Java installed onto it for a network to work. However, with a virtual machine written in C++, you can use something called reflections, that allows you to wrap any programming language to write a program for the virtual machine to work. You could write in Java, Html5, or JavaScript and they could all run on a C VM.

Rong was now combining his original OS from 2006 with the Android in C++, to create a virtual machine in C++. The benefits of this were that with a CVM, there is no bridge needed for the virtual machine to talk to the hardware. This prevents man in the middle attacks. This is a true sandboxed environment. By not needing to communicate with a bridge to the hardware, when a file is opened in a C virtual machine, the VM can act as a quarantined area if it has a malicious actor within it. This is unique to the C language and was a breakthrough for technology.

This marvelous machine would later become the Elastos Runtime.

The team also began work on a decentralized peer to peer network. If they could install their new virtual machine on top of an Android or iOS, they now had a solution for creating millions of users without needing to compete for hardware. They began writing the protocol for this peer to peer network from scratch. This would become the Elastos Carrier. With the new sandboxed C virtual machine and a P2P network to connect them all directly through potentially hundred of millions of devices, Rong and his team were truly getting close to the network operating system.

This idea, of creating a network of devices is really the same idea as the internet of things, but with a much more accurate name. For an operating system in a sensor, in a camera, in a router, in a smart speaker, in a car, in a phone, in anything at all, to be able to communicate with other operating systems and create a network with real security that itself becomes a giant computer, is not really about the thing, but about the web that connects them. It is the web that is the core of this, not the thing. To call this an "internet of things" is less accurate than calling it a network operating system or web OS. What Rong devised is larger than the internet of things itself… it is the web of interconnection with real security that can connect any hardware in the world into a giant smart network….and even with the immensity of this idea, he had not even discovered what he would use as the final piece of his project.

Halfway through the project Foxconn pulled out its investment. This near final twist and turn on his journey home led him to a new entrepreneurial opportunity and the cherry on top of a decades long dream. After all of his different innovations, after every twist and turn, after the amalgamation of 17 years of work, Rong Chen finally found his epiphanic glue: blockchain.

With the discovery of blockchain technology, and the influence of Feng Han, Rong Chen decided that when combined with the network operating system of virtual machines and a decentralized peer to peer network, he could actually achieve "the value internet."

Thus, Elastos was born.

In 2017, Rong realized that with the combination of hundreds of millions of virtual machines all within their own sandboxed environment with each request made by the virtual machines authenticated by a blockchain ID and communicated directly via a decentralized peer to peer network, he would finally and truly create the Elastos network operating system.

With so many virtual machines being able to talk to each other, each getting its own ID from the blockchain, Rong finally had a real "world supercomputer."

The internet he had been imagining for so long, was about to become very smart.

But Rong also knew that while blockchain helped create the value internet, it was not the value internet alone. A blockchain is a bookkeeping method. It can allow people to know how A transferred over to B, and this creates a new revolution of transparency and trust, but it does this slowly. It is more trustworthy, but less efficient. Blockchain is not meant for transferring movies, and music, and messages, and sending large packets of data. Blockchain is a ledger, not an entire internet, and not an operating system. Instead, blockchain would become the ledger of the network operating system thus enabling the value internet.

Rong understood what blockchain could do, but more importantly, he understood what it could not do.

With Elastos Runtime spread out across millions of devices, decentralized applications could run on sidechains, instead of the main chain of Elastos, enabling near infinite scalability.

Rong knew that blockchain possessed six traits that would benefit this internet: it could remove the operating intermediary, it could remove the player intermediary, it could give IDs, create scarcity, enable consensus, and create tokens.

This last part is important because for an open source project to work, it needs an incentive to maintain it. This is where miners and tokens come in.

"There used to be three big operating systems: Microsoft, Apple, and Google. They're basically different ecosystems for applications so every application must take sides. In today's value internet, there's no side to take. The internet is a platform for people to communicate. So everything should be open source. We have worked on the operating system for 18 years. Previously, we didn't have enough resources. Now we have the token incentive mechanism to reward the participants, so everyone can participate. We are throwing out our bricks in hopes of getting back jade."

All of his work has been in the creation of an ecosystem that works automatically. Rong has said that this is the key to its success.

"Besides being open source, technically speaking, the biggest and most important difference is the web OS. Elastos' technical guiding ideology is, "The internet doesn't involve computing. And computing doesn't involve the internet." In short, we are making sure the value is there on the internet. In other words, all the network communication between virtual machines is generated automatically. All communication between virtual machines is generated automatically. This phrase is the core and key of our technology."

And so, here we are today. Building an ecosystem. Incentivizing our citizens. Creating an industrial network operating system for every hardware, for every person to be connected safely, to own their own code and join an internet of value that is decentralized and for everyone. This epic journey, this surreal odyssey, has at its center, a humble man.

When asked of his idols, "I've never thought about it. Some pioneers are marvelous, such as Steve Jobs. But now I think being a prophet is actually quite sad."

When asked if there were times when he was filled with fear on his surreal journey, "No, I'm an optimistic person."

When asked of his dream,

"To make Elastos available to the whole of mankind."

Rong Chen is a surrealist, an abstract expressionist who has found form in a sandbox for the subconscious…the subconscious of the internet that is….the unseen world before us, the wild west of symbols and code and darkness that is uncontainable and can infect us with its caged fury. We are all vulnerable in this online world, Rong knew it back in the 90s, and he has spent all these years building us a defense, a new playing field, leveled just for us. The Runtime that quarantines the Darknet. That quarantines the Trojan Horse that for Odysseus and the Greeks, was the gift horse that took down an empire, that took down a country. Our country is not made in this image, but in the image of a hero's journey that does not take down empires, but builds them up. We are starting with our citadel on a hill, our cosmic fortress, our floating castle with the knowledge of what can take us down, what can take anyone down, ahead of time. We are building this internet knowing not to accept the Trojan Horse and look its gift in the mouth — but to instead, quarantine it.

We are not the Greeks nor the Trojans nor any people within any border.

We are the world and the world is us.

Elastos will be what we are, the community that builds it.

Some might think it is self-promotional to commend one's own so thoroughly, and under certain circumstances, this would be correct. But in this case, it's not self-promotion, because Rong is just a human being, and he would never do that for himself. It it simply actual appreciation. There is nothing more authentic than recognizing someone's hard and selfless work and the long journey it took them to get there and feeling enthusiasm for it. People respond to authenticity with authenticity. Rong is as authentic as they come, in tech, or in any other field. He is a humble servant to society, who has traveled a long way for many decades to get us to this point with him. We may be enthusiastic for Elastos, and have been for months, and those months may even feel like years, but Rong has been enthusiastic about it for actual decades. This is his life's work — a safe internet that works and provides a cyber republic for the common man and woman in any country, regardless of geography, regardless of borders and divisions and regardless of how they look or what they are called. An internet for all things and all people in an open source and yet secure way. Elastos is a foundation that wants to create the foundation for a global idea. We are all connected now, and this is only going to become more common and connect more things to us in the future. We need a new infrastructure for this new smart internet of everything for everyone. We need a network operating system that can go on any device and has a blockchain to create verification and scarcity and ownership and consensus. We are not one of hundreds of similar projects — we started decades ago in the mind of a man who is more famous for what he did after he left the battlefield than when he was on it. His epic journey that started in the 1970's and saw him live at the heart of operating systems and the internet and be bold and brave enough to face the monsters and the naysayers and the twists and turns along the way, and to make it home, to be standing today, traveling the world trying to help it benefit itself by banding together and helping each other. This man is the stuff of epics.

The Odyssey is an over 2700 year old script of 2109 lines of dactylic hexameter verse. It tells the tale of one man's journey coming home that is really the story of all of us with a bit of epiphany, perseverance, luck, and gratitude, and that is why it has survived this long. Rong's project is also lines and lines of a strange and intriguing language, not dactylic hexameter, but C++, that tells a story of our time in technology and as a society. It is a document of all of us. His lines paint a picture of a vision to connect everything openly and fairly and allow us to have a world where our value is ours.

This is his journey.

It is classical. It is Homeric. It is a story worth being told.

There are many suitors currently feasting in our halls, vying for our affection on a grand and global scale, but there is only one who took the journey to truly get there.

There is an old Zen koan that says, "The journey is the reward."

So let's take our own journey — let's claim our own reward.

Onward! Upward! Elastos!

Elastos is hiring full-time and part-time community members for technical and non-technical positions: https://medium.com/elastos/we-want-you-elastos-community-recruitment-da0e97694f63

Copyright © 2018 elastos foundation, All rights reserved.

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