Elrond is a decentralized network designed to fix the scalability issue found in many major blockchain networks. It’s one of the leading Ethereum competitors because it enables users to create decentralized apps and smart contracts on its platform while facilitating transactions. Its transaction fee is pretty low as compared to bigger networks like Bitcoin, Ethereum, Zilliqa, and more.
What is Elrond?
Elrond is a blockchain-based network designed to support cheaper cross-border transactions without the involvement of centralized entities. Elrond uses the sharding technique to provide fast transaction speed while supporting more programs. Furthermore, it uses a Secure proof-of-stake (SPoS) consensus protocol to synch different components securely.
Elrond is named after a character in Lord of the Rings. The developers claim it helps with building a stronger bond with the users. Therefore, they’ve followed the same theme while naming different projects of this network.
Elrond vs Ethereum
Bitcoin is the biggest blockchain network that can process around 3-5 transactions per second. But Bitcoin doesn’t support Decentralized apps and Smart Contracts. Ethereum, on the other hand, provides these features along with several others.
Ethereum can process around 12-15 transactions per second. The team is working on introducing a new version of Ethereum (i.e Ethereum 2.0) that will boost its ability to process thousands of transactions per second. However, based on current stats, Elrond is leading the competition because Elrond has the ability to process 15,000 transactions per second.
Moreover, it costs only one cent for each transaction whereas Ethereum may charge hundreds of dollars when the traffic increases. Elrond is more eco-friendly than Ethereum because it uses a Secure proof-of-stake consensus protocol while Ethereum is still using the Proof-of-work consensus protocol for transaction processing.
Elrond Brief History
Elrond was introduced by Lucian Mincu, Beniamin, and Lucian Todea in 2017. The project is managed by Elrond Network, a Malta-based company dedicated to ensuring the continuous growth of the project. The company raised around $1.9 million for this project through a private investment round in 2019.
The company also sold around 25% of the total supply through an Initial Exchange Offering and raised around $3.25 million during the same year. The native cryptocurrency was initially introduced as ERD but it was named EGLD in 2020 when the mainnet project was launched. The investors were given a fair chance to swap their ERD to EGLD during a transitionary event.
Over the years, Elrond has established its reputation as one of the biggest Ethereum competitors.
How Does Elrond Work?
Elrond is dedicated to providing excellent developer support and cross-chain interoperability with a reasonable transaction fee. Elrond Network introduces itself as an internet-scale blockchain because it can handle multiple transactions quite efficiently.
Elrond stands out among others with its three important features.
Adaptive State Sharding Technology
Elrond introduces a balanced high-performance system with its three standardized sharding technologies.
Network Sharding – It’s used for proper mapping and allocation of the network nodes in specific shards.
Transaction Sharding – It’s used to define the mapping method required for different types of transactions.
State Sharding – It’s used to support transactions between users who are on different shards. It uses random nodes from network shards to eliminate the risk of potential attacks. It boosts the synchronization process by storing only a portion of the overall network state.
The coordination between different shards of the network is made possible with the help of Metachain. The Metachain supports the entire Elrond crypto ecosystem by allowing different shards to communicate with each other without any disruption.
The secure Proof-of-Stake consensus protocol introduces a number of innovative features that make it a better option than the standard proof-of-stake consensus mechanism. The operators can use a server, computer, or smartphone to participate in the transaction processing. The users can play three different roles as node operators.
Validator – These participants stake their eGLD tokens to participate in the transaction processing. They’re responsible for verifying the transactions within the network. They may lose their staked tokens if they verify a false transaction. However, they may receive eGLD tokens as a reward for validating transactions.
Observer – Observers are only responsible for reading the data available on the network. They don’t need to stake their own assets to participate in the process. Similarly, they don’t get rewarded for their participation.
Fishermen – These node operators play an essential role in securing the network. They’re responsible for identifying the malicious transactions from the blocks that are generated after the confirmation of validator nodes. These node operators are rewarded based on the intensity of malicious activity they detect.
The unique thing about Elrond is that it randomly selects validators with the help of blockchain sharding. Thus, the validators are only responsible for validating the data that’s available on their shards. It ultimately helps with improving the network’s efficiency. The validator selection process is completed within 100 milliseconds with the help of Boneh-Lynn-Shacham (BLS) multi-signature technology.
Elrond Smart Contracts
The Elrond Virtual Machine enables users to build smart contracts using different programming languages including Rust, Transcript, Go, C++, and C#. Elrond has its own Rust Smart Contract platform that streamlines the process for developers.
Furthermore, its virtual machine is compatible with Ethereum Virtual Machine which means the developers can migrate their smart contracts to Elrond quite easily.
Elrond is a blockchain-based network designed to support cross-border transactions while allowing users to build smart contracts on its platform. It offers fast transaction speed with a very low transaction fee. It uses Secure Proof-of-Stake (SPoS) consensus protocol to ensure secure transactions on the network. Feel free to get in touch with us if you need more information about Elrond Works.