A subsequent development of the elastic space model is presented. It is argued, contrary to the cornerstone idea of general theory of relativity (GR), that space becomes Euclidean in the presence of matter. A metastable state, that is a non-Euclidean space possessing elastic energy (elaston), decays into “true” vacuum that is Euclidean flat space (Es) or physical space. Particles are created with a total energy equal to the decrease of elaston’s energy. Non-Euclidean space that had proper dynamics and kinematics before decay becomes flat and plays an entirely passive role that is locally virtually Newtonian “absolute space” or Minkovski continuum for relativistic cases. Coordinate system in the flat space became locally fixed once and for all but globally space increases in the volume. Expansion of physical space DV is proportional to the increase of creating mass DM, DV=П*DM where П~10^{26} m^{3}/kg. Physical space and particles come together.

So, our World is divided into two physically distinctive areas: 1) elastons with non-zero elastic energy L > 0, non-Euclidean geometry and lack of particles and gravity, 2) the rest Es with zero elastic energy L= 0, which holds particles, gravity and other physical fields.

Galaxy- and star-formation is a result of cascading down of elaston’s energy. There is no dark non-baryonic matter and homogeneous dark energy in this model. Acceleration or deceleration of the expansion of our World is a summary outcome of Es creation in the mass production process. We can consider our World as a “bag” inflating under the influence of the pumps that are elastons ejecting physical space. Elastons are “central engines” which driving cosmic jets, inflating bubbles and supershells and creating AGNs, SNs, PNs and stars. The flat Euclidean physical space in this model is finite and can not be globally empty, that relax Newton – Leibniz contradiction in understanding of the nature of the space. Our World is a consequence of the evolution of space under Ricci flow and transformation of its elastic energy into particles.