What is Elrond?
Elrond is a decentralized protocol designed to encourage a distributed network of machines to operate a smart contract platform with a focus on scalability and low transaction fees.
Elrond is positioned to compete with global blockchains such as Ethereum and Zilliqa in the creation of a decentralized application and cryptocurrency ecosystem.
Additionally, the Elrond Integrated Development Environment can be used by developers to write and deploy customized applications that mimic products and services on the web.
The EGLD coin, Elrond’s native cryptocurrency, is used to communicate with applications, submit transfers, and incentivize actors that help the network.
How Does Elrond Work?
Smart contracts, transaction settlement, and token issuance are both available on the Elrond network, which is similar to other cryptocurrency networks.
To sell a range of goods and services, developers may use programming languages (such as Rust, C, and C++) to execute custom programming logic (smart contracts) and build new programs (decentralized applications).
Elrond is distinguished by its sharding and proof-of-stake architecture combinations, which aid in the processing of approximately 12,500 transactions per second.
Sharding divides the network into shards, allowing nodes to handle only a portion of the network’s transactions. Other rival blockchains, such as Zilliqa and Polkadot, use this technique as well.
Elrond’s SPoS consensus system was created to build upon current Proof of Stake solutions.
It lowers network congestion and enables every node in the shard to choose which participants will be in the consensus community at the start of each round.
The aggregated signature from the previous block provides randomization. According to the Elrond team, this cuts the period it takes to nominate a majority party to under 100 milliseconds.
There is also a weighting factor that promotes meritocracy among nodes while also taking stakes into account. Elrond also implements the Bellare and Neven multi-signature system, which was created to minimize the number of contact rounds used in the signing algorithm.
It seeks to ensure equal shard delivery as a more advanced version of Proof of Stake, and it is a balance between increased energy and computational demands and security.
What is the History of Elrond?
Elrond was established in 2017 by Lucian Todea, Beniamin, and Lucian Mincu, with the sponsorship of Elrond Network, a Malta-based organization committed to the project’s expansion.
The project held private funding round in June 2019, receiving $1.9 million from multiple angel investors.
Elrond conducted an Initial Exchange Offering (IEO) in the same month, raising $3.25 million in exchange for 25% of the available token stock.
Elrond’s cryptocurrency was first known as ERD coin, however after the project’s mainnet released in July 2020, the name was modified to EGLD coin.
After that, the project hosted a transitory event in which investors might exchange their ERD for Elrond’s latest EGLD cryptocurrency.