Scalability and high cost are two significant problems that major blockchain networks like Bitcoin and Ethereum have to deal with. Projects like Polygon and Harmony were created to solve these issues, and the Elrond project also offers solutions to these problems.
Elrond has attracted a lot of attention by providing clever ideas and solutions for many issues, such as scalability, value growth, security, and low cost.
The Elrond blockchain supports the Internet of Things (IoT), Fintech, and Dapps (decentralized apps). The virtual machine of Elrond is Web Assembly based, which allows the creation and execution of Ethereum Dapps. The platform claims its smart contracts include 250,000 transactions per second, six times the transaction speed, and at a fee of less than one cent.
The main goal of this project is to raise the performance level of a decentralized network and compete with centralized networks on a more level playing field. Key concepts to help Elrond achieve this goal are its custom technologies, identified as the Adaptive State Sharding and Secure Proof of Stake consensus mechanisms.
In this article, you will learn more about this project, how it works, what services they are offering to their customers, and much more.
What is Elrond?
Elrond is a public, distributed, and decentralized blockchain network. Its features include supporting smart contracts to run decentralized applications (Dapps).
Elrond has two crucial features that differentiate it from other blockchain networks:
- Adaptive State Sharding
- Secure Proof of Stake consensus mechanism
The Elrond network processes transactions and network data in parallel with the help of Adaptive Sharding Technology. Sharding enhances Elrond’s performance, so that as the number of nodes increases. While providing decentralized features, it increases the network’s ability to process more than 100,000 transactions per second.
One of the most critical differences between Elrond and other blockchain networks is that you do not need robust hardware and computing power to participate as a node on this platform.
You can participate as a node of the Elrond network with ordinary computer systems. The Elrond network is designed in such a way that there is no Proof of Work (PoW) algorithm and associated high energy consumption.
This network uses the Proof of Stake (PoS) algorithm. Stacking or depositing the Elrond network’s indigenous token (EGLD) and receiving rewards in the form of EGLD tokens provide the necessary incentive for nodes to participate and ensure network security.
While Elrond is still in the development stage, developers see it as the cornerstone of the future of an open, borderless, global digital economy. This goal can be achieved by transforming Elrond into a platform with a scalable value transfer protocol, with easy deployment of decentralized applications (Dapps).
This contributes to the fact that the Elrond team has an equal number of entrepreneurs with technical and technical backgrounds who previously worked at Google, Microsoft, and Intel; some were also part of the NEM blockchain platform.
To summarize the Elrond network, Elrond has solved the high energy consumption problem and the need for powerful computing hardware by using a safe Proof of Stake algorithm. In addition, this network’s unique sharding technology makes parallel transactions possible and dramatically increases scalability.
What is the purpose of the Elrond network?
Efficiency, increasing scalability, and creating a way for different blockchains to interact through using the latest technologies simultaneously with high throughput is the primary goal of the Elrond network.
Elrond is aiming for a solution that, in addition to decentralizing and respecting user privacy, provides performance and speed similar to or better than centralized platforms.
How does the Elrond network operate?
The developers have designed the Elrond blockchain architecture using Adaptive State Sharding to increase scalability and execute fast transactions.
The best way to use Sharding is to implement it at all levels of the network, including transactions, data, and the network infrastructure itself.
The main difference between adaptive shredding and blockchain shredding is that it improves communication between shredded chains and increases network performance through parallel processing.
This increases the TPS (transaction processing per second) and thus significantly improves network scalability. Users can participate in the Elrond network in three ways as a node:
- Validators: Validators process transactions and ensure network security by participating in the consensus process. In order to do this, validators must stake the EGLD token on the network as collateral. In the event of an error or disruption to the network, verifiers will lose their stake as a penalty.
- Observers: Observers are passive network users whose role is to facilitate. They can act as a complete node and store all blockchain history in their system or keep only two periods of general ledger history as a light profit. They do not need to stake the EGLD coin to work as an observer, and they do not earn any reward for their participation. They must provide part of their system as a server to the Elrond network.
- Fishermen: Fishermen are users who verify the validity of blocks after they have been processed and created by validators. They find invalid blocks and get rewarded for this action. Observers and validators who do not participate in that period of consensus can act as fishermen.
As mentioned earlier, Elrond uses the Secure Proof of Stake (SPoS) mechanism for consensus among its network nodes. This consensus mechanism is responsible for coordinating the nodes of the distributed network. Just like with Proof of Stake (PoS), in Secure Proof of Stake, computers run Elrond software to secure the network, authenticate transactions, and distribute new EGLD coins.
However, because the Elrond network is created from split chains instead of a single chain, confirmation nodes are selected to build blocks on a single shard instead of confirming all transactions and creating blocks across the entire network.
Finally, Fisherman nodes, which are responsible for assessing the validity of built-in blocks, must review the work of other block builders and integrate other network nodes. As soon as a block is created and added to the network, participants receive their reward in the form of EGLD.
If you want to participate in this system as a node, you must first stake EGLD coins on the network. Keep reading. The best part is yet to come!
What are Elrond network services?
Like many blockchain networks, Elrond allows users to create smart contracts, generate tokens, and execute transactions. Elrond services include chain interaction, the Maiar decentralized app, and the Elrond Wallet:
- Maiar decentralized application
One of the primary services of the Elrond network is creating an ecosystem for developing decentralized applications. One of the first Dapps designed by Elrond is called Maiar. Maiar is primarily a fast browser that aims to increase user privacy.
But it offers a wide range of features and capabilities, including storing, staking, sending, and receiving EGLD coins. Users can also purchase eGold directly using Maiar.
- Elrond Wallet
With the Elrond Wallet, you can securely transfer, receive, and store your eGold tokens. It also allows you to use decentralized applications based on the Elrond network.
- Cross-chain interoperability
To be even more decentralized, Elrond seeks to provide cross-chain interoperability. The network development team plans to start implementing the Elrond Virtual Machine (EVM) by connecting with various external services.
The virtual machine supports smart contracts written in Rust, C ++, C #, and Typescript, allowing users to transfer Ethereum and other ERC-20 tokens in secure transactions without the need to exchange between the Elrond cryptocurrency networks. EVM also has a feature called the Adapter Mechanism that connects to other chains.
What is Elrond’s roadmap?
Finding solutions to blockchain’s most challenging consensus and sharding problems has enabled Elrond’s distributed and peer-to-peer networks to provide acceptable performance while forming low-cost systems and performing low-speed transactions. Elrond’s achievements to date include the following:
- The first blockchain network architecture to support sharding
- Ability to process 15,000 transactions per second, which makes the network scalable to more than 100,000 transactions per second
- Six-second delay in execution of transactions and $0.001 fee per transaction
- Launching the Maiar app to buy, store, monetize and pay for Elrond, Bitcoin, Ethereum and BNB
- Execution of smart contracts, providing the possibility of staking EGLD coins
Elrond developers have outlined their future roadmap for the protocol as follows:
- Releasing the Maiar app version 2.0
- Providing on-chain governance
- Starting DeFi 2.0, which will enable lending & synthetics
- Merchant Yielding
- Creating strategic Multi-country hypergrowth
What is EGLD?
Elrond network native tokens are called eGold or EGLD. Originally known as the ERD, the token was a BEP-2 standard cryptocurrency. BEP-2 is the Binance Chain network standard, but after launching the main Elrond network, it became a BEP-20 standard token. But what are the uses of Elrond network tokens?
Applications include payment of transaction fees, participation in governance processes, staking or depositing, and rewarding network approval nodes. EGLD digital currency is not a second cryptocurrency of the Elrond network. It is an improved version of Elrond’s main network token.
The network development team changed the economic model of the ERD token. Thus, every 1000 ERD tokens will be equivalent to one EGLD token. Next, we will discuss how to buy this coin!
How to buy eGold?
There are currently two ways to buy or sell EGLD. I will explain both ways, and you can use the method that suits you best. EGLD is available on both centralized and decentralized exchanges. The first way to buy EGLD is using a decentralized exchange.
Since this coin is a BEP-20 standard token, you can use the PancakeSwap exchange. Here are the steps to do so:
- First, you need to create a digital wallet using the Trust Wallet app.
- The second step is to deposit money into your wallet and buy Binance Smart Chain.
- After that, open the PancakeSwap website and click on the swap option.
- You should connect your wallet by clicking on the “Connect Wallet” option. There is a Trust Wallet option, and it will show you a QR code. Scan it with your Trust Wallet app, and after the process is complete, you should see your wallet address in the top right corner.
- In the swap section, you can see two options to select. Select the crypto that you have in your wallet first. For the second part, you should search Elrond’s smart contract address. Then click on import.
Caution: Be careful that anyone can create cryptocurrencies, and there are similar tokens to EGLD, which are mostly scams. Make sure you search on the contract address, which is unique and safe.
- Then, you must agree to the Terms, and now you can easily convert your BNB to EGLD.
- Remember to disconnect your wallet before you leave.
The second way is to use a centralized exchange like Gate.io. To buy EGLD, you should take the following steps:
- Sign up for the Gate.io website
- Deposit money using your credit card
- Exchange your cash for USDT or BUSD
- Find the EGLD/USDT or EGLD/BUSD pair using the search bar
- Using the trading window, you can buy or sell EGLD.
Caution: Be careful when using online exchanges because they are not safe places to keep your crypto assets. Consider transferring them to a wallet.
What is the best exchange to buy Elrond network cryptocurrency?
EGLD is listed on several exchanges. Of course, the number of centralized exchanges where you can buy and sell EGLD is more than the number of decentralized exchanges. The only decentralized exchange that lists this project is PancakeSwap V1 and V2.
24H volume: $30,000,000
24H volume: $4,800,000
24H volume: $2,500,000
24H volume: $1,100,000
In which wallets should you store the eGold token?
One of the most frequently asked questions by users is what is the right wallet for storing Elrond network passwords? The best software wallets for this are Maiar Wallet, Elrond Web Wallet, Trust Wallet, and Frontier Mobile Wallet.
Suppose you want to keep your tokens in a hardware wallet. In that case, you can use Ledger Nano S or Ledger Nano X. Now let’s learn about the developers of this project!
Introducing the Elrond network development Team
The prominent Elrond development team, in addition to technical knowledge, are also experienced in entrepreneurship and business management. Benjamin Mincu is the project executive and co-founder of the project and started his work in the blockchain area as part of the NEM team.
He is known as a leading engineer in the field of blockchain in Europe. Before joining Elrond, he worked as the founder and CEO of MetaChain Capital. Lucian Todea is a co-founder of Elrond and works as the operations manager.
Before joining Elrond, he worked as an entrepreneur, founder, and CEO of Soft32, Partner mobilPay, and investor in Typing DNA and Smart Bill. Lucian Mincu is another co-founder and the Chief Technology Officer (CTO) of the Elrond Protocol.
He worked as an engineer at Uhrenwerk 24, Cetto, and Liebl Systems before working at Elrond. He is also the co-founder and CEO of Information Technology at Elrond.
Felix Crisan is the project’s research director. He is the co-founder of BTKO, which is known as the first Bitcoin exchange in Romania. He has also served as Chief Technology Officer (CTO) on the Netopia platform.
What is EGLD price prediction?
We use technical and fundamental analysis to predict the value of eGold. Here we have provided a complete technical analysis to predict the price and growth of eGold. We identify the most probable scenarios and show them in the chart.
It can be seen from the chart that the current price of this coin is in a downtrend. A zigzag correction pattern has formed in the past few days, and the A wave and the B wave are both complete. The completion of the C wave is yet to come.
We expect the C wave to continue its movement until the lower line of the heavy support zone. There is also a possibility that the price will break below the heavy support zone and continue to fall to the lower support zone. If either happens, an uptrend from the end of the C wave is expected.
The upward movement of the price after the ending of the zigzag correction pattern will probably break the dynamic resistance line. After this, it will create impulsive waves between the dynamic resistance line and the highlighted resistance zone. If the price manages to break the SMA 100 and SMA 50, you can expect even higher values for this token.
Any overall thoughts?
Many blockchain networks today use a variety of solutions to solve the scalability problem. The Elrond network can be considered one of the most advanced platforms in the field for improving transaction processing speed by using sharing technology.
Elrond is a decentralized blockchain network that offers users features such as cross-chain cryptocurrency transfer, the Mayar decentralized application, and the Elrond Wallet.
In this article, we discuss what the Elrond network is, what problems it solves, how the Elrond network works, what services it provides to users, the EGLD digital currency – ways to buy, sell and maintain, the project roadmap, the development team and a technical analysis of the EGLD coin.
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Frequently Asked Questions about Elrond (FAQ)
What’s special about Elrond?
The unique thing about Elrond is its technology. This project uses Adaptive State Sharding and a Secure Proof of Stake consensus mechanism, making it a pioneer in the world of cryptocurrencies.
Is the Elrond coin a good investment?
Looking at this token’s future, fundamentally, it shows a bright and promising future because of the low fees and the sharding technology that this project uses. But the technical analysis is not showing the same future.
Unless the market changes into a bullish one, higher price levels for EGLD are an unrealistic expectation. Therefore be careful while investing, and if you are new to this, read our article about how to start trading.
How much is Elrond worth?
You can access the live price and the market cap. of Elrond’s native token via the CoinMarketCap website.
What is EGLD used for?
It is used as part of the platform governance mechanism, for rewards and credentials, and as payment for smart transactions and contracts. Elrond platform users and developers will likely pay EGLD to use the Elrond network, which acts as fuel for the entire ecosystem.
Can EGLD be mined?
You can mine EGLD via the Just Mining website. You should stake your tokens in this platform, and your tokens will provide liquidity for pools. You will earn rewards for doing so, making the staking of EGLD profitable for both sides.
Thanks for reading! Stay tuned for more crypto content and price predictions.