Elrond is a blockchain-based protocol aimed to promote the digital economy’s security, speed, and scalability using innovative technologies to build a network capable to operate at a high volume of transactions per second. Elrond was established in 2017 by the Mincu brothers, Benjamin and Lucian. They also co-founded digital asset investment fund, MetaChain Capital. Its main net was launched in 2019, and since August of this year, Elrond has been performing at a high level. It teams up with NewsCrypto and Humans as well as gaming-focused companies as well as DeFi and transactions between Polkadot, Binance, and Ethereum.
How Does It Work
Elrond uses an Adaptive State Sharding scaling technique and a Secure Proof of Stake or SPoS. Elrond’s network has three sharding types, namely, state sharding, transaction sharding, and network sharding. State sharding in which the state or history of the whole network is divided into sections called “shards”. In transaction sharding, transactions are outlined based on some standards or measures, such as the address of the sender. Network sharding is where nodes are categorized into shards to enhance communication. Adaptive State Sharding enhances communication within shards and improves the platform’s performance by combining all these three types of sharding. Thus, scalability issues are addressed.
Meanwhile, Secure Proof of State concept allows a participant to mine or validate Elrond transactions based on the amount of currency they possess. This method gets rid of the computational waste of the Proof of Work approach.
Elrond’s Electronic Gold Token
The Electronic Gold (EGLD) coin is the medium of exchange in the Elrond environment. This utility token is used for various transactions and tasks within the network, including payment of smart contract fees, rewarding validators, and staking. With Electronic Gold’s integration with KuCoin as well as the Maiar Exchange, the digital currency has reached another level of exposure. This caused its trading volume to skyrocket to $740 million on September 11.