5 min reading
Interested in Elrond? Discover its creation history and the most intriguing features.
Top ecosystem teams are hard at work improving scalability and throughput, as well as offering alternative crypto projects. Among the best performing cryptocurrencies, EGLD is one of the most surprising. The asset is not directly tied to Bitcoin and it is not the most touted digital asset. We will enlighten you about the blockchain platform Elrond in this article.
What is Elrond
Elrond (EGLD) is a blockchain protocol that incorporates an adaptive segmentation (sharding) strategy for realistic scalability and guarantees operational fairness via the Proof-of-Stake consensus. It provides a much greater throughput compared to centralized competitors. Experts consider the architecture as a supplement to existing models, aiming to achieve a balance between decentralization, scalability, and security. It is, in some ways, a modification of the architecture.
According to the developers, its smart contract execution technology performs 15,000 transactions per second, with a 6-second response time and a $0.001 transaction charge. The network is separated into distinct parts (shards) that can run in parallel with one another. Elrond already employs this technology. Elrond was initially announced in August 2019, with the main net launching in July 2020, and presents itself as a blockchain platform for the emerging Internet of Things, DApps, and corporate use. Thanks to sharding, Elrond can provide extremely fast transaction speeds.
Elrond was founded by a group of seasoned entrepreneurs, engineers, and researchers with extensive blockchain experience and technical skills from Microsoft, Google, Intel, and NTT DATA. Elrond was initially revealed in August 2019, and its mainnet went live in July of 2020. The team comprises two PhDs in CS and AI, as well as many Olympiad winners in math, CS, and AI. Beniamin Mincu, a former NEM team member, is the project’s leader and one of the blockchain technology pioneers. For 1.5 years, he oversaw the project’s marketing department. Before Elrond, Benjamin and Lucian Minku co-founded MetaChain Capital, a digital asset investment company, with Benjamin Minku serving as CEO and Lucian Minku serving as CTO. They also co-founded ICO Market Data, an information aggregator for initial coin offerings.
Elrond token (EGLD)
Transaction validators get EGLD native tokens (eGold) for their contributions to the ecosystem and the network’s upkeep. As a result, the greater the commission and the more costly the token on the secondary market, the more transactions there are in the network. For the first year, the platform offers a supply of EGLD tokens for stacking on the network, with validator nodes receiving a 36% annuity.
Elrond’s economic model has a restricted supply that begins at EGLD 20,000,000 and includes fresh tokens distributed to reward network validators. Thus, the maximum supply cannot exceed EGLD 31,415,926, although, with more transactions, this quantity will fall. At the moment of writing, total capitalization is $5,951,494,619, according to CoinMarketCap.
The network employs the Secure Proof-of-Stake consensus, which entails thousands of validators which means they get revenue for verifying transactions. Due to the strong protests of the worldwide community to the Proof-of-Work mechanism in the case of Bitcoin, many consider the introduction of PoS as a benefit for the project. As you may know, the PoW method requires a significant amount of computing power to confirm transactions.
Another key feature of EGLD is sharding. It’s also worth mentioning that Elrond enables shard loading of no more than 50% (this is known as TargetShardLoad), ensuring that the network is prepared for a surge in traffic. In other words, when utilizing the Elrond blockchain, the transaction cost should not increase while the transactions are processed for many hours.
In conclusion, the primary purpose of developing a distributed EGLD network is to alter the structure of the World Wide Web to give more social scalability. The platform must ensure data privacy and censorship resistance. The project’s initial exchange offering (IEO) was held on Binance Launchpad, and the token was later listed on numerous exchanges. Nowadays, you can buy EGLD at the most popular exchange and trading platforms, such as bit4you and others.