Elrond Network: Better, Faster, Stronger

Leading blockchain developers are working hard to solve the scalability and throughput issues commonly found on all crypto networks. As an example, Ethereum network fees are as high as $50 at around 15 transactions per second, making it one of the most expensive blockchains to initiate transactions and make payments.

This is the reason why Elrond blockchain developers are creating an environment capable of processing up to 15,000 transactions per second, which is 10,000 times faster than what Ethereum network can offer today. Developing the blockchain with an innovative approach in mind and new architecture in place allows the project to fill the missing piece in the emerging Internet economy. With tons of opportunities, no boundaries and limitations, Elrond sure looks like the most promising and popular projects at the moment, an essential pawn for every crypto player.

Unique Features

Along with Elrond its competition did not close an eye, there are other projects in the field of scalable, secure and efficient blockchain being developed, such as Ethereum, Zilliqa and Algorand which are trying to catch Elrond and its incredible number of transactions per second.

The blockchain features a modified Secure Proof of Stake (SPoS) consensus algorithm that protects the network from attacks and utilizes mechanisms that randomly select validating nodes to achieve consensus. The choice of nodes is affected by the number of locked tokens and the validator’s rating, which changes depending on his activity and compliance. In addition to validators, there are also two other node roles in the network:

  • Observers : Regular users
  • Fishermen : Users who verify the blocks offered by validators.

The increase in throughput is achieved through the use of adaptive sharding — a mechanism for distributing data among multiple nodes that allow each node in the network to process only a part of all transactions. A sufficient number of nodes, blockchain partitioning, and parallel transaction processing ensure a reliable level of network security and increase transaction processing speed.

It is also worth mentioning that Elrond’s blockchain is being developed with an WebAssembly (WASM), an open-standard portable binary-code format that matches CPU architectures, allowing Rust, C, C++, Go, TypeScript & many others to compile to it unchanged.. This means that the development of the ecosystem uses existing solutions, which allow Elrond and Ethereum to continue interacting with each other in the future.

While sharding technology has the potential to improve blockchain efficiency and transaction processing speed, it has unique security considerations, such as the minimum economical cost for disrupting 1 shard is only 1/4 from the cost it would require to attack the entire, un-sharded chain.

The Elrond protocol mitigates this by randomly shuffling the Validators between each shard every 24 hours (1 epoch) — to reduce the available collusion time between potential attackers.

. However, one should keep in mind that sharding is relatively new and is already showing tremendous potential through its unique process

There are $1.4 billion dollars currently staked, which would put the theoretical minimum for attempting such a disruption at ~$350 million

Mainnet

With the launch of Mainnet, the tokenomics of the project were also changed. Initially, Elrond ERD tokens were issued both on the Binance Chain and on the Ethereum blockchain. As of September 2020, ERD tokens in ERC20 or BEP2 formats can be exchanged for EGLD tokens — Elrond’s internal economy tokens, at a ratio of 1,000 ERD = 1 EGLD. Coins can be swapped on the Binance exchange or through a specially designed swap bridge on Elrond network and most recently on their phone app called Maiar

EGLD token

The EGLD maximum supply is capped at 31.4 million EGLD. There are 21 million EGLD circulating right now, and the rest will be issued over the next 10 years. Importantly, transaction fees offset issuance, so the max amount will never be reached. Scarcity scales with adoption.

In addition to coin-staking on the Elrond network, users can delegate their tokens to validators using EGLD-enabled wallets. In this case, the annual profit of delegators is about 29% per annum, as they pay a commission to the validators, who receive about 36% per annum.

Elrond supports two types of delegation:

  • Active delegation allows one to receive up to 36% per annum only if the validator to whom the tokens have been delegated receives a reward. Currently, this delegation method is not being used, and, therefore, the second type of delegation has been created.
  • Waiting list delegation allows participants to receive a reward based on delegated amounts. In this case, delegates receive up to 20% per annum regardless of the validator’s reward.

Additionally, 5,000 tokens are distributed to all participants each week. With the next phase of the Elrond upgrade, the token delegation system will change: validators will be able to block amounts over EGLD 2,500, the number of nodes will be increased, and delegator yields will be reduced to 20% per annum.

Elrond ecosystem

Projects benefiting from Elrond’s blockchain include, but not limited to:

  • Samsung’s blockchain wallet;
  • Chainlink and Band Protocol oracles;
  • ARPA confidential computing protocol;
  • Ontology, which allows Elrond applications to access decentralized identity network;
  • Bluzelle, which provides Elrond applications access to its data;
  • xDai protocol, whose collaboration will enable token transfer between the Elrond network and Ethereum-compatible chains.

More information about the projects that have partnered with Elrond can be found at the Elrondpartners website.

Maiar

The app connects to the Elrond mainnet, and to Ethereum and Binance Chain, where only ETH & BNB are respectively supported. BTC is coming in a future release.

To send EGLD tokens, you can use phone numbers or so-called “herotags” — simple names on the Elrond network that function through a DNS service. The app is designed to be used by ordinary users, its intuitive user experience enabels everyone, regardless of their background to access blockchain technology and cryptocurrencies.

Elrond & DeFi

The integration of Orion Protocol’s liquidity aggregator trading capabilities will allow Elrond to be used as a settlement platform for trading. Elrond is used to process transactions and provides users with smart contracts that are later used to create trade orders.

Another interesting factor is that Plotx Market Prediction Protocol’s partnership with Elrond allowed the participants take advantage of the blockchain’s lower transaction fees and higher throughput.This can only rejoice all the DeFi users looking for lower fees.

At the same time, Elrond allows its users to create Elrond Standard Digital Tokens (ESDT) that are as fast as the EGLD token. For example, a partnership with Bidao (BID),will allow EGLD tokens to be used as collateral to produce a stable BAI coin that will be available on Elrond’s core network.

Conclusion

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