Today, the crypto space has established itself as one of the leading spheres across the globe. In recent times, the industry has continued to enjoy increasing adoption in spite of its volatility. Notably, millions of traders across the globe explore cryptocurrencies everyday to facilitate their respective goals. Irrespective of how investors explore cryptocurrencies, the most notable function of the assets is to serve as a medium of payment and investment, thereby relegating the traditional approaches to doing these things. Additionally, some of these crypto assets run to serve as native tokens to numerous virtual protocols, serving as instruments through which their users make payments for the services or transactions carried out. Worth noting that the Elrond (EGLD) is one of such crypto.
Meanwhile, the EGLD crypto, just like others remains one of the crypto assets available to investors within the sphere. Since its emergence, it has continued to compete for value and prominence with its contemporaries. Without further ado, this article seeks to comprehensively appraise the rudiments of Elrond, its background, native protocol, features and potentials.
Elrond (EGLD) crypto is the native token of the Elrond protocol. As designed, the token helps to power the network of the protocol. Just like other virtual assets, the EGLD crypto can be sent, received and used as a means of rewarding network contributors, and running smart contracts. Notably, every stakers and holders of Elrond enjoy governance right, which enable them to vote on network upgrades and other notable proposals. Additionally, stakers of the token usually get newly minted EGLD crypto as rewards. However, the reward is usually proportional to the amount staked. As a multi-purpose token, it helps to facilitate interactions among applications on its native protocol. Elrond crypto, like its contemporaries, is usually impacted by the volatility of the market. This means the prevailing indices in the market can push the price up or pull it down.
Notably, Elrond as a protocol runs as a blockchain-oriented platform, allowing users to develop numerous decentralized applications. According to its whitepaper, the platform manifested to address the prevailing menace of traffic congestion on blockchain networks. As revealed, it provides solutions capable of accelerating transactions and availing a scalable enablement for developers and other end-users. More so, Elrond is designed to be user-friendly and cost effective.
As designed, Elrond usually avail incentives to participants on its network using its native token. Worth noting that these participants always invest their computational power to the system. Developers on the platform will then harness the computational power to develop their dApps.
According to its whitepaper, the protocol possesses the capacity to handle about 15,000 transactions per second. Remarkably, developers usually explores its Integrated Development Environment (EDS) to write and develop their customized applications. These developers, in most cases, use programming languages, like Rust, C++ to initiate customized programming logic on the platform. It possesses a virtual machine, which runs as a smart contract execution engine. This machine helps to widen the scope of available programming languages to developers of smart contract. With this, they are able to develop their innovative dApps to serve the need of their users. The platform uses nodes, which runs to avail support to transactions and provide security to the platform.
The founding team of Elrond
The Elrond project started in 2017. It was founded by Lucian Todea, Beniamin Mincu and Lucian Mincu. Notably, the project gets it support from Elrond Network, based in Malta. As discovered, both Beniamin and Lucian are brothers. They jointly established an initial coin offering information aggregator ICO Market Data. Additionally, they both co-founded a virtual asset investment fund, identified as MetaChain Capital.
In Mid 2019, Elrond, through its team, initiated on a huge private funding round. Reportedly, it gathered over $1.8 million as investment from angel investors. Shortly after, the platform also conducted an Initial Exchange Offering (IEO). Interestingly, it raided over $3 million as an exchange for 25% of the total supply of its native crypto. In 2020, Elrond launched its mainnet and consequently changed the name of its token from ERD to EGLD crypto.
Today, Elrond possesses a hardcore team of expert, running the affairs of the project. Its Co-founder, Beniamin Mincu currently serves as the CEO of the protocol. Also, Lucian Todea, another Co-founder of the project is its current COO. Meanwhile, Lucian Mincu serves as its CIO. Felix Crisan and Radu Chis respectively head the research and technology departments of Elrond. Just as Iulian Pascalau and Adrian Dobrita are serving as the core developer and head of engineering respectively.
Features of Elrond
Elrond claims to be an ecosystem for the economics of new internet, business, and decentralized applications. The Elrond ecosystem remains highly rated for its scalability. Notably, the blockchain claims to be the first to have network and transaction sharding have all been implemented. As indicated by its roadmap, the ecosystem aims to install the native token EGLD as a store-of-value asset.
In accordance with this aim, Elrond runs on 2,169 validator nodes. These nodes becomes further split into four shards. These shards contain three execution shards that can process 5,400 transactions per second independently. The last shard, Metachain usualy serves as the coordinator.
These shards are adaptive in structure because they can scale by including an additional shard when the the throughput demand becomes unachievable. At the testing stage, Elrond processed about 263,000 TPS in a public setup. At the same time, processing 1,500 nodes, divided into 50 shards from 29 countries.
Notably, the Elrond ecosystem is notable for its support for developers within the ecosystem. The platform offers developers that are building on its blockchain a 30% royalty on smart contract fees. Similarly, during its first year, the ecosystem maintained a distribution of EGLD coins to stake on the network. Elrond also offers validator nodes a 36% annual return on the states.
Safety of the ecosystem
The security of the Elrond ecosystem is rated highly in the cryptocurrency space. This is due to its distinctive employment of the proof-of-stake consensus mechanism. The network mandates that validating nodes stake their EGLD coin to join the validation process. The network rates the performance of validating nodes based on their previous performance. The rating goes a long way in determining if these validating nodes would be considered for future activities.
Meanwhile, if the rating of a validating node hits a low level, such validator will pay fines and be denied of future selection. In a situation where a validator acts against the cores of the network, such validator becomes disposed from the network. Before then, the validator will suffer the slashing of their stakes as a warning sign for irregular activities.
In a transparent manner, Elrond selects validating nodes in an unpredictable way. The ecosystem usually avoids congestion by shifting validating nodes among shards. However, the network facilitates communication among validating nodes through a modified Boneh-Lynn-Shacham or multi-signatures for a solid cryptographic guard.
Undoubtedly, the policies mentioned above of the Elrond network have helped strengthen the network against irregularities. With its policies, it’s quite difficult for validating nodes to exploit users of transaction fees. Directly, validators offer the best service on the Elrond network to protect their reputation.
Growth of the token among its peers
Without a doubt, the growth of EGLD has exceeded the the expectation of many cryptocurrency enthusiasts. Therefore, complimenting the friendly posture of the Elrond ecosystem with a native token with a reputable value. Over the year, the token has come out strong in terms of value among its peers. However, ELD is still struggling for relevance and popularity, mainly because its ecosystem is still growing. Nonetheless, the token is showing promising signs of becoming a relevant project in the cryptocurrency space.
Above reasonable doubts, EGLD has benefitted massively from the excellent reputation of the Elrond ecosystem. Thus, making it one of the most valuable native tokens in the crypto space. The Elrond ecosystem has attracted liquidity for EGLD, causing the token to soar in value. Though, the it has been more of a beneficial relationship between the two. They’ve both contributed massively to each other’s growth while leaving other emerging ecosystems to play catch-up.
Future of Elrond
The future of both EGLD and Elrond is bright due to the policies guiding activities in the ecosystem. Also, the commitment kf the team behind the ecosystem has been exceptional. Their dedication has facilitated the growth of the ecosystem and the rising value of the the EGLD.
The future of the ecosystem appears tied to how well Elrond comes out on top of the emerging completion in the cryptocurrency space. The ecosystem is currently striving against fast-raising blockchains. This rising competition has mandated ecosystems to come up with numerous distinctive plans to attract more users. A trend Elrond hasn’t been left behind at the moment.
Though, there are growing concerns about whether the ecosystem will be able to compete for long. While it’s doing well currently, the Ecosystem must keep up with the pace to become a prominent figure in the crypto space.
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