Being highly scalable and fast, Elrond is -among other blockchains- a competitor to Ethereum. Elrond aims to lay the groundwork for ‘the new internet’. In this report we will explain further on how they want to achieve this.
Elrond is a smart contract blockchain network that offers a layer where developers can build decentralized applications, protocols, and tokens on.
The dedicated token of the Elrond Network is EGLD – Electronic Gold. This is used as a transaction fee on the Elrond blockchain and can be used for staking, securing the network and govern the future of the Elrond Blockchain. Owning and staking EGLD allows users to vote on future network upgrades.
Elrond’s Blockchain is a highly scalable, fast and secure blockchain for distributed apps and enterprise use cases. It is designed to compete against major blockchains, such as Ethereum and Cosmos.
This review of Elrond – EGLD was created for informational purposes. This article is not intended for promotion.
Elrond supports Smart Contracts. This dedicated Smart Contract System is called the ‘Virtual Machine’, built on an underlying code format WebAssembly – WASM and allows you to write Smart Contracts in any other computer language.
In case you haven’t heard of the term ‘Smart Contracts’:
Smart Contracts are programs that run on the blockchain, mostly used to automate the execution of an agreement. (these can be used in, property law, financial services, legal processes, crowdfunding agreements and more.)
Elrond brought forward a new approach to consensus and named it Secure Proof-of-Stake. This eliminates Proof-of-Work (PoW) computational waste and combines it with stake and rating with random validator selection and an optimal environment for the consensus group. For more information, make sure to visit their official website.
Sharding is the splitting of the blockchain into a collection of other blockchains, called ‘Shard Chains’.
What makes Elrond stand out is the implementation of ‘Adaptive State Sharding’.
Basically they split the network in three shards:
Combining all three sharding types into a solution improves communication inside the shards and greatly increases performance through parallel processing. Elrond’s variations of sharding and proof-of-stake, helps Elrond process roughly 10,000 – 15,000 transactions per second (TPS) with a latency of just 5 seconds.
Elrond was co-founded in late 2017 by brothers Mincu and Lucian Todea.
Beniamin Mincu is a tech visionary and early blockchain pioneer in Europe. In 2014 he worked in Products & Business at NEM Core. Lucian Mincu is a previous Engineer at Uhrenwerk 24, Cetto and Liebl Systems and co-founder and CTO MetaChain Capital. The team of Elrond consists of engineers, entrepreneurs and researchers with technical experience at Microsoft, Google and Intel.
For a detailed explanation of how the Elrond protocol works, please refer to the whitepaper.
The Elrond Trust Ecosystem gives us a clear picture of which partners are involved.
Elrond’s EGLD tokens power the Elrond Network. It is used as transaction fees on the blockchain, staking and securing the network and governance of the Elrond Blockchain.
Owning and staking EGLD allows users to vote on future network upgrades.
The larger the total amount of EGLD staked, the higher the system security. Therefore Elrond aims to have above 50% of the circulating supply staked at all times.
Elrond aims to utilize the full potential of the DeFi ecosystem and provide a selection of advanced tools. Make sure to visit Elrond’s DeFi page to read more.
One example is Maiar, a mobile app for smartphones that functions as a wallet and payments application. No need for an email address or password. Create an account by putting in only your telephone number. With Maiar you can send crypto from various blockchains to your friends and family in just a few clicks. Typing or copying a wallet address is hereby no longer needed. Don’t know that person’s telephone number? Send crypto to a username.
View this tutorial video on how easy it is to use Maiar Mobile App.
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We are curious of what the future will bring for the Elrond’s ecosystem. Elrond’s advanced tech with fast delivery and low cost should imply that this is a project best to keep an eye on. Due to the creation of its Maiar Wallet and Maiar Exchange, Elrond gained quite some interest from global media companies, such as Forbes and Bloomberg.
At the beginning of 2021 Elrond – EGLD token value was sitting around $24 and one month later spiked to almost $200: a growth of over 800%. On 22 november it reached almost $500.
Elrond manages to combine the three imortant features; Processing of hundreds of thousands of transactions per second, with a $0.001 transaction cost, comparable to Ethereum 2.0 speeds. A Secure Proof-of-Stake is like Harmony’s Effective Proof-of-Stake and a Virtual Machine that resembles Cosmos-ATOM CosmWasm. This could mean that Elrond can handle more transactions per second than every other Smart Contract Blockchain.
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