There are numerous projects in the crypto space today among which is Elrond. The volatile market hasn’t stopped the growth of crypto coins even though some are already fading out.
Bitcoin is the most popular and biggest cryptocurrency and has served many purposes. Other projects like Bitcoin have been created to also solve problems in our world. One of these altcoins is Elrond which has its own uniqueness.
In this post, we’ll learn about Elrond and its native token, EGLD. Before then, let’s have a sneak peek into the world of cryptocurrency and blockchain for the sake of beginners.
What is Cryptocurrency?
Cryptocurrency is a digitally encrypted, decentralized currency that is not linked to or regulated by any government or central bank.
It is based on blockchain technology, which is a distributed ledger framework. Bitcoin is the first cryptocurrency created which has led to the creation of others alike known as altcoins.
Cryptos are categorized as virtual or digital currencies. They were originally developed to provide an alternative mode of payment for online transactions.
However, cryptocurrencies have not yet been generally adopted or legalized by many nations. They are actually too unreliable to be used as payment methods.
What is Elrond (EGLD)?
Elrond is a blockchain protocol that seeks to offer extremely fast transaction speeds by using sharding. The project describes itself as a technology ecosystem for the new internet. This includes fintech, decentralized finance, and the Internet of Things.
Elrond was co-founded in late 2017 by brothers Beniamin and Lucian Mincu alongside Lucian Todea. It was created as a solution to the problem of blockchain scalability, which they thought to be the most pressing problem facing the industry.
Though the project was first announced in August 2019, it officially debuted in July 2020. The blockchain has a native token known as eGold, or EGLD.
Elrond
What Makes Elrond Unique Among Other Cryptos?
As stated earlier, crypto projects differ in their blockchains. Elrond describes itself as a blockchain platform for the new internet economy, decentralized applications, and enterprise use.
Its main selling point is its high scalability, stating that it is the first blockchain network in which state, network and transaction sharding have all been implemented. According to its economics paper, it seeks to build up its ecosystem and establish EGLD as a store-of-value asset.
To make this happen, the network runs on 2,169 validator nodes split into four shards. It is made up of three execution shards and one coordination shard.
In order to increase adoption, the project also supports developers building on the platform, allowing them to earn 30% of the smart contract fees as royalties.
The company maintains a supply of EGLD tokens to stake on the network during its first year, with validator nodes receiving a 36% annual percentage rate.
What is Elrond (EGLD) Token’s Worth in the Crypto Industry?
The native token of the Elrond protocol trades by the symbol EGLD. The token is used for paying network fees, staking, and rewarding validators.
As of writing, EGLD is ranked 40th among thousands of cryptocurrencies according to CoinMarketCap. The current price of EGLD is $54.77 USD with a 24-hour trading volume of $48,045,257 USD. It has a live market cap of $1,233,164,263 USD.
EGLD has a circulating supply of 22,513,983 EGLD and a max. supply of 31,415,926 EGLD coins. The tokens are available for purchase on crypto exchange platforms such as Binance, OKX, etc.
How is the Elrond Network Secured?
Elrond makes use of the proof-of-stake algorithm in which nodes must stake their EGLD tokens to participate in the validation process. Here, each validator is assigned a rating score based on past activity, which also influences whether or not they are selected.
If a validator’s rating becomes too low, it will not be selected and must pay fines. Validators can also be removed from the network and have their stakes slashed if they continuously act in a manner that is against the integrity of the network.
Validators are randomly selected in a way that can be neither predicted nor modified based on the previous round of validations. In addition, validators are periodically shuffled between shards as a way to prevent collusion. Nodes communicate among one another using modified Boneh-Lynn-Shacham, or BLS, multi-signatures for strong cryptographic protection.
Why Elrond is a Hot Commodity Today
Developers, validators, and businesses use Elrond to build a new internet economy because of its features which are listed below.
1. Scalability
Its adaptive state sharding brings a 1000x improvement in throughput compared to previous blockchain iterations by enabling parallel transaction processing.
2. Secure & Efficient
Its proof-of-stake consensus mechanism is fast and ensures long-term security and distributed fairness. It also eliminates the need for energy-intensive proof-of-work algorithms.
3. Developer-friendly
The Elrond Virtual Machine is a dedicated smart contract execution engine built on WASM. It expands the family of languages available to smart contract developers to include Rust, C/C++, C#, and Typescript.
This means you can write smart contracts in whichever language you’re familiar with, compile them of WASM and easily debug its WAT human-readable format.
4. Staking
Elrond is running the energy-efficient Secure Proof of Stake consensus mechanism. Validators and Delegators stake eGold to secure the network and earn rewards. The staking process is non-custodial, meaning you are always in control of your funds.
Here, you can stake with your phone to earn competitive rewards. You can become an early adopter of game-changing technology and also make history by being part of the Elrond ecosystem.
What are Elrond’s use Cases & Targets?
Elrond has several use cases which are
1. Dapps and Smart Contracts development
2. Programmable Blockchain
3. Blockchain accessibility
4. Corporate Enterprise Partnerships
5. Creation of a new financial system
6. Building business on top of blockchain with simplicity
7. Focus on UX/UI for a great user experience
8. DeFi development
9. Data Monetization
10. Gaming.
Conclusion
Elrond is a highly scalable, fast and secure blockchain platform for distributed apps, enterprise use cases and the new internet economy.
Elrond is a good option if you want to diversify your portfolio. If you need to trade top crypto assets at good rates, Prestmit is one of the best platform to do so.
Bitcoin, Dogecoin, Litecoin, and USDT are available here if you consider selling your crypto assets. Payment options here include the Nigerian Naira, Ghanaian Cedis, and USDT.
Read Also- Top 5 Crypto Myths You Should Know
