Elrond (EGLD): Cryptocurrency Overview

The first cryptocurrency, Bitcoin, and the global web launch network Ethereum have generated notable interest and attracted many investors. But, creating a decentralised, secure and scalable public blockchain proved to be a challenge. The first wave of cryptoboom 2017 showed that all traditional blockchains have insufficient bandwidth. And so far, no cryptocurrency network has been able to seriously improve scalability while maintaining full decentralisation.

Top ecosystem teams are working hard on this, and other blockchain engineers are trying to compete with them by proposing alternative crypto projects. In this review, we will tell you about blockchain platform Elrond.

Elrond’s (EGLD) development history

The cryptocurrency (EGLD) is built on a brand new adaptive segmentation architecture, which allows the network to become more scalable as new nodes are added to it.

Development of the cryptocurrency startup Elrond began in 2017. The main goal of creating a distributed EGLD network is to reshape the World Wide Web, to provide a higher level of social scalability. The platform should guarantee data privacy and resistance to censorship. The project’s IEO was conducted on Binance Launchpad and the token was then added to trading on other exchanges.

Technical features of Elrond (EGLD)

The project is based on a compromise on parameters such as decentralisation, security and scalability. In a sense, the creators of the project are rethinking the blockchain architecture.

The Elrond team is proposing a new infrastructure, and its main advantages are:

  1. High level of scalability;
  2. Complete confidentiality of information;
  3. The ability to resist the censorship of Internet applications and technologies;
  4. Ability to run radically different management models on the network;
  5. Energy efficiency.

Elrond eliminates the need for intensive consensus algorithms and offers a new and more secure betting consensus proof, improving communication within segments and reducing blockchain state to the bare minimum necessary.

Elrond’s blockchain is fully compatible with EVM and Ewasm, and smart contracts can be run on it in computer languages:

  • Solidity;
  • C;
  • C++;
  • Rust.

The project is based on adaptive sharding. This is a variant of registry database optimization using horizontal partitioning. The blockchain is split into fragments, which allows to significantly speed up information processing. The sharding model involves separating the network, financial transactions and states, allowing the blockchain to maintain throughput for any number of active nodes without compromising decentralisation and security.

The chronology in the Elrond network is organised around a timeline that is divided into epochs and cycles. While epochs can be changed along with the system architecture, they have a largely fixed duration, the expiration of which triggers the reorganisation and pruning of shards. Rounds also exist for a fixed period of time. Within each round, a new consensus group is randomly selected for a segment and tasked with fixing one block in the segment book.

Security is provided by the Secure Proof-of-Stake protocol. This is an algorithm in which consensus is achieved by randomly selecting validators from a special ranking table. The random number selection mechanism identifies a node in a group of segments, which prevents the vast majority of malicious attacks. Each node in a segment identifies consensus group members (initiator and block validators) at the start of the round. This scheme is made possible by using the aggregated signature of the last block as a randomisation factor. Elrond allows different blockchains to communicate with each other using an adapter on a virtual machine. However, a separate gateway must be created for each blockchain that is incompatible with EVMs.

Elrond Project Team (EGLD)

Elrond is created by a team of experienced entrepreneurs, engineers and researchers with significant experience in blockchain and technical expertise at Microsoft, Google, Intel and NTT DATA. The team includes two PhDs in CS & AI, multiple champions in maths, CS and artificial intelligence Olympiads.

The project leader is one of the pioneers of blockchain technology, former NEM team member Beniamin Mincu. He led the project’s marketing department for 1.5 years. Other members of the team include:

Lucian Mincu (CIO) – qualified infrastructure engineer with 8 years of experience in developing complex products for start-ups and implementing high-tech, infrastructure and networking solutions for large corporate clients, including government agencies in Germany.
Adian Dobrita (blockchain engineer) has worked for leading companies such as Intel, ST-Ericsson, Continental. He has developed industrial-grade embedded software in areas such as mobile communications and automotive industry.
Go to the official website here. If you are interested in Elrond cryptocurrency project dynamics, you can read the news on medium.com.

Elrond (EGLD) price outlook

Let’s take a look at Elrond cryptocurrency startup’s prospects. The 2022 forecast on different websites may differ slightly. As of 14.11.2021 for 1 EGLD on Binance they give 320 USDT, while a year ago this coin was worth 8 USDT. Assuming the bullish trend continues, Elrond could double in price or even reach 1,000 USDT.

This scenario may seem quite bullish and unrealistic, but nevertheless, Elrond cryptocurrency’s future outlook is mostly positive. The token has appreciated thirty-eight times in one year. This price change clearly shows the great potential of the coin.

How to mine Elrond (EGLD)

EGLD cryptocurrency is not mined using traditional PoW mining on video cards and ASICs. The money can be obtained either by participating in the maintenance of the network or by stacking.

EGLD holders, help the validator make the bid required to run a trusted node by entering their tokens into a smart contract .

In this way, they contribute to reaching the required economic security threshold and receive a percentage of its income. The Elrond Pre-staking process via Metamask is already complete. To deliver or delegate your EGLD tokens, you need to create an official wallet, buy tokens on the exchange and select the appropriate earning option for you under Staking.

Go to https://wallet.elrond.com and, click on the “Delegate” section on the left. The intuitive interface will help you start delegating (minimum bid 10 EGLD), request a reward and exit active delegation. Read more about Elrond steering on the project’s official website. The video instruction can be found here.

Secure Proof of Stake (SPoS)

SPoS guarantees that the network is protected against attacks. Transactions are processed and new blocks are created by validator nodes that are active participants in the network.

A node is a computer, smartphone or server on which an Elrond client runs and retransmits messages received from its peers. Nodes can act as validators, observers or fishers, providing different levels of support to the network and receiving proportional rewards.

Validators process transactions and protect the network by participating in a consensus mechanism. They are remunerated for signed blocks and transaction fees. To become part of the Elrond network, a validator needs to provide collateral in the form of EGLD tokens. It can lose its bid if it colludes to disrupt the network. Each eligible validator can be identified using a public key. A random selection mechanism for assigning a validator to a particular group of segments blocks malicious attacks.

Observers are passive members of the network. They have a status of either Full, keeping a full copy of the blockchain, or Light, keeping only 2 epochs of history. Observers are not required to put EGLD tokens to join the network and do not receive participation rewards.

Fisherman status is given to the node that verifies the validity of new blocks. They cut off invalid blocks resulting from malicious actions and receive a reward for maintaining the network. Validators who are not part of the current consensus round, or ordinary observers, can act as the Fisherman.

How to buy or sell Elrond (EGLD)

EGLD cryptocurrency is traded on the following exchanges:

  • Binance;
  • OKEx;
  • Gate.io;
  • Bitfinex;
  • KuCoin;
  • WazirX.

Binance is the most popular and reliable exchange for trading. To buy EGLD coins, complete a simple registration on the exchange website and verify your account.

Available pairs:

  • EGLD/USDT
  • EGLD/BTC
  • EGLD/BNB
  • EGLD/BUSD

We advise you not to execute trades on less popular exchanges. Security on these exchanges is often at a low level and there may be difficulties with transfers. For a full list of trading pairs see Coingecko.

Wallet for Elrond (EGLD)

You can create a wallet for EGLD tokens in the test on the official website. Create a new wallet is not difficult. Think of a strong password, write down a mnemonic phrase and download the keystore file. You can also store EGLD altcoins in the Ledger hardware safe.

Conclusion

Elrond cryptocurrency has great promise. Elrond’s blockchain has a throughput of 35,000 transactions per second, which is higher than Visa and MasterCard’s payment systems. The startup has not only an interesting idea, but also a fundamentally new technological basis.

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