What is Elrond blockchain? A high-throughput public network built to provide unlimited scalability and unparalleled efficiency. Built with an entirely new architecture it combines a secure Proof-of-Stake (PoS) algorithm with the so-called Adaptive State Sharding mechanism. Elrond can process over 10,000 transactions per second at a low cost along with a 5-second latency. After quickly gaining popularity as one of the first projects to raise funds via Binance Launchpad. In this article, we will answer the question of what is Elrond blockchain? Furthermore, we will look at the eGLD token usage.
Elrond is emerging as a promising projects to solve problems that have been major bottlenecks for various cryptocurrency projects. Along with causing painful headaches for their users. Firstly, the lack of interoperability between blockchains. Secondly, the network congestion problems, rising transaction fees and high confirmation times. Where many smart contract capable chains have simply copied Ethereum and inherited the same problems, the team behind eGLD token has redesigned blockchain architecture from scratch to bring numerous improvements on speed and cost – notably the ability to do parallel transaction processing.
A highly scalable, fast, and secure blockchain platform for distributed apps, enterprise use cases, and the new internet economy.
What is Elrond Blockchain?
The platform aims to become a network that ensures high throughput, fast transaction speed, and low transaction costs. Allowing, developers to deploy dApps efficiently as possible along with having a competitive edge to answer real-world use cases. Elrond believes their platform will be suited for machine-to-machine transactions and the Internet of Things (IoT) economy. The platform is aiming to become the backbone of the open, unlimited, borderless, and globally accessible digital economy. The team is a group of individuals from entrepreneurial and technical backgrounds. Many who have previously worked at Google, Microsoft, Intel and were part of the NEM blockchain platform.
The Internet Scale Blockchain.
Adaptive State Sharding
You cannot review the Elrond blockchain without mentioning their innovative approach to creating a consensus algorithm that brings unlimited scalability. From a technical perspective, ERD stands apart from numerous other blockchain projects simply because of its approach to sharding. Adaptive State Sharding is a sharding protocol invented by Elrond. Essentially, it is network sharding, transaction sharding, and state sharding – all wrapped up together in one cohesive unit. The idea is that by combining all three, Elrond can scale efficiently to demand while also ensuring no down-times. Additionally, Elrond’s approach allows for instant traceability among the shards meaning they eliminate many communications rounds. That we still see in traditional approaches to sharding data. To summarize, Elrond’s unique approach can do it faster while making the protocol remain increasingly decentralized as more nodes join the network.
Secure-Proof-of-Stake (SPoS) in Elrond Blockchain
One of the main attractions to using blockchain technology is security. Namely, that you can not tamper with the ledger. The problem of using the correct consensus algorithm is an issue that many blockchain projects are still figuring out. Proof-of-Work (PoW) consensus though more secure to attack vectors, is slower and more energy-intensive. Proof-of-Stake (PoS) facilitates the high-throughout put required for real-world applications but is more centralized. Elrond blockchain addresses these issues with their Secure-Proof-of-Stake (SPoS) consensus algorithm. The main difference to PoS is the introduction of using a randomness source that is not predictable or influenceable.
The fast and absolute random nature of the validator selection process makes the protocol remain secure. Furthermore, each validator has a rating score. Thus incentivizing their operators to keep their node’s up-time high or risk lowering their rating.
How is eGLD token used on the platform?
Once deployed to their mainnet, the main use cases for eGLD token will be the following:
- Pay for transactions and storage fees for using the network.
- Used by developers when deploying dApps.
- Rewards for contributions to grow the ecosystem and for SPoS validators
- Used when interacting with a smart contract.
- To participate in the blockchain’s consensus algorithm (Staking).
- Voting and on-chain governance (in the future).
Mainnet Launch: Zero to One
Elrond mainnet launched successfully on 30th July 2020, dubbed by their CEO Beniamin Mincu as Zero to One. After a very successful testnet, eGLD holders are looking forward to the project’s promising future. For example, the Genesis Staking Program (to bootstrap a successful mainnet launch) was sold out within 4 hours. That meant investors staked 1.12 billion eGLD tokens in under 4 hours – an incredible feat. Just take a look at this amazing list of key partners:
- Swingby – cross-chain liquidity for inter blockchain asset swaps. Essentially, means Elrond will be able to access the growing DeFi ecosystem’s liquidity on Ethereum from launch.
- Ankr – deploying validator nodes will be easy thanks to Elrond’s partnership with Ankr a blockchain cloud infrastructure provider.
- Decentralized Finance – work with ORION and also DFinance to build innovative DeFi tools that will use Elrond native assets.
- Swipe – eGLD token is spendable directly from VISA cards with over 60 million merchants thanks to Swipe. The eGLD token is available for purchase by over 500,000 registered swipe users.
- ARPA – Appetite is also growing for privacy coins across the industry, Elrond will allow privacy-preserving smart contracts via ARPA.
- Staking services – staking is important for any PoS chains, users need to be able to stake. Several partnerships to achieve just that: Just Mining, Helios Staking, ViaStake, StakeDAO, Staking Agency, and more.
- Binance – Binance Labs is one of Elrond’s early backers. They plan to use the platform to leverage fast and inexpensive $BUSD stablecoin transfers.
- Samsung – Elrond’s gaming app known as Battle of Elrond is featured in the Samsung Galaxy Store. The eGLD token is available in the native Samsung blockchain wallet.
There should not be any concerns over the fundamentals or technical capabilities of Elrond – they are more than great. The platform is developer-friendly, supporting multiple programming languages: Solidity, C, C++, and Rust. The team has also spent considerable time building relationships and partnerships. Thereby, making the positive growth potential for eGLD look amazing given the network has numerous use cases. There is also a strong and vibrant community behind the project.
With the mainnet now launched and live, we will truly see if this is Elrond’s time to shine. Because, there should be only one concern: competition in this category of blockchain tech is very fierce. The scalability sector of cryptocurrency needs innovation and a push forward. Many projects are all gunning to achieve the same goals: Ethereum, Algorand, Zilliqa, Kadena, Harmony, EOS, PChain, Quarkchain. In brief, market over-saturation could be a problem.
The Altcoin project that is the clear winner will pick up large size of the overall crypto market. Furthermore, it will cement itself as a blockchain here to stay. There is no reason why this can not be Elrond, which is why I will follow eGLD token’s launch closely.
Stay safe and trade well.