What is Elrond? eGLD Explained (Price Prediction) - CoinGlid.com

What is Elrond? eGLD Explained (Price Prediction)

Elrond: being able to handle a massive amount of transactions in the crypto world as more and more people are onboarded has seemed like a big problem.

That most projects have faced since the beginning of cryptocurrencies old timers like bitcoin and ethereum included. unfortunately this has introduced some hassles when using crypto as investors and traders deal with these really slow transaction speeds insane gas fees or both now it’s almost impossible for users to turn their backs on these cryptocurrencies and their blockchains as they offer certain unique advantages.

Elrond

Bitcoin for example is basically the gold standard for digital assets given its main power to store value through scarcity ethereum on the other hand is a programmable blockchain that allows the creation of smart contracts and highly utilizable decentralized finance applications.

However developers have been seeking ways to combine the qualities of bitcoin and ethereum with a touch of maximum scalability and it seems like maybe they’ve hit a much needed breakthrough.

in this article we’re going to be explaining what elrond is, how it works including the tokenomics behind the coin e-gold.

In late 2017 two brothers lucian and biennamen minchu alongside a friend lucie and today created elrond to solve the industry’s scalability problem now before co-founding elrond the mean shoe brothers launched meta chain capital acryptocurrency investment fund with biennamen as the ceo and lucian serving as a chief technology officer.

What is elrond?

Elrond is a public blockchain that offers all the good things a decent blockchain needs including two key components known as the adaptive state sharding and secure proof-of-stake consensus mechanism we’ll get into these two critical components later on in the article elrond’s blockchain not only facilitates high-speed transactions but is also a complete fintech internet of things and defy ecosystem this basically means that developers can leverage this blockchain to build all kinds of dapps seamlessly.

ELROND Holy Trinity | 1- Adaptive State Sharding | PeakD

The developers believe that being able to process a ton of transactions and something called linear scaling should not eliminate other important features that a blockchain should have usually that other blockchains give up for speed to this effect they designed elrond to have the capacity of processing up to 10 000 transactions per second while keeping transaction finality and gas fees at a bare minimum.

Now if you’re new around here that means they want transactions to be confirmed as fast as possible but while also keeping it cheap another thing that they are determined to do is remove the use of centralized exchanges and trading platforms to be the main way that most people switch from one blockchain to another for a while if you wanted to go from one blockchain to another blockchain what you had to do is sell your crypto to a centralized exchange like coinbase then use the money from that sale to trade to buy another crypto asset to which you could then move elsewhere.

Elrond is attempting to remove this step just like many other blockchains have by using bridges and something called the elrond virtual machine so as mentioned earlier elrond’s blockchain utilizes something called adaptive state sharding and its unique secure proof-of-stake algorithm to provide the scalability we’re talking about now in a minute we’ll going to explain these but you should know that the native coin of the elrond network is called e-gold.

What is Adaptive state sharding?

when it comes to their scaling elrond has taken a different approach to sharding technology which is pretty unique basically as a result they created a database optimization method that establishes itself as being one of the leading blockchain driven solutions.

As a recap most blockchains that have sharding simply break up their network into a bunch of different pieces each of which are basically mini versions of the whole network that basically check in with a master shard every now and then and this is kind of what the plan is for the ever coming ethereum 2.0 upgrade.

This next part’s going to get a little technical but basically the network’s chronology is organized based on a timeline divided into rounds and epochs rounds are designed to exist within a specific time frame and in every round the network selects a new consensus group for a particular shard and then tasks it with making a new block for that shard which is a shard is just basically a mini blockchain also epics can undergo modification alongside the network’s architecture which is a fancy way of saying they can be adapted.

Epics exist for a fixed time frame and whenever they expire they trigger the pruning and reorganization of all the shards elrond’s sharding implementation is driven by their desire to achieve some specific objectives now we know the

Crypto Blog

Polygon Matic: What is Polygon? MATIC Explained

What is Polygon Polygon Matic: Over the years, Ethereum has brought all kinds of advancements into the cryptocurrency space including smart contracts and high-interest paying decentralized applications. 3 Big Challenges in Ethereum …

What is Elrond? eGLD Explained (Price Prediction)

Elrond: being able to handle a massive amount of transactions in the crypto world as more and more people are onboarded has seemed like a big problem. That most projects have faced since the beginning of cryptocurrencies old timers like…

Things that elrond wants to Accomplish

  • They want to achieve scalability without tampering with availability thisbasically means that whenever there’s afluctuation in the number of existingshards whether we’re growing orshrinking the network it should notaffect updates or downtime.
  • Instant dispatching and traceability now in plain english that means we want thenetwork to know where everything is on the network at once and be able to calculate future stuff on the network easily.
  • To achieve complete adaptability in a way to keep shards balanced consistently.

Now earlier We mentioned the growing and shrinking of the network basically they want the network to be able to adapt well what is needed by the users.

What is Elrond’s consensus mechanism?

Elrond’s consensus mechanism or basically the system that they use to make sure that everyone agrees on the transactions on the blockchain elrond’s secure proof of stake consensus mechanism comes as an improvement to the regular proof-of-stake consensus mechanism the secure proof-of-stake algorithm reduces latency meaning it’s quicker and at the beginning of every round the members in a consensus group are determined by each node in the shard again a bunch more jargon but this means that it reduces the time of a consensus group election basically the time it takes to pick the nodes for a shard to less than 100 milliseconds.

The network also has incorporated a weighted model of rating to support meritocracy amongst nodes while also considering the amount that you have stake.

In other words the more coins you have and the more truthful that you’ve been in the past the more your vote counts.

What is meta chain?

The meta chain is a protocol that is driven by a special shard it focuses less on transaction processing and more on

  • Accelerating communications between all the shards.
  • Triggering new epics
  • Rewarding stakers
  • Storing and maintaining the validators registry
  • Approving the block headers of processed shards

in simple language that means it is basically the master shard and is very similar to ethereum’s beacon chain

finally the last component of elemron’s architecture are the e-gold tokens they primarily drive the blockchain by serving as a way

  • To pay for transactions
  • storage
  • validator rewards
  • dap
  • development deployment and smart contract execution

Elrond’s native token is called e-gold and unlike many other projects or coins that i’ve covered on the site it was created to actually rival bitcoin as a store of value.

What are the Tokenomincs of E-gold?

E-Gold has a limited supply that starts at 20 million tokens with new tokens minted to reward validators. However the total maximum supply can never go beyond around 31 and a half million e-gold tokens and this number will technically decrease as the number of process transactions increase since a portion of the fees of every transaction are burned they’re gone forever for every transaction a percentage of the fees go to the validators some go to the elrond community fund and like we said earlier some are burned.

Also a cool feature that elrond has that i actually kind of thought was neat is that if you create asmart contract and a lot of people use that smart contract 30% of the transaction fees associated with that smart contract go straight to you the developer you earn part of the transaction fees.

In terms of tokenomics e-gold was first released for purchase in a private sale in which the developers sold 19% of the initial supply which is quite different than how bitcoin was launched during elleron’s a half percent of the purchased tokens were made available immediately while the rest were distributed in 15.4% increments every quarter for six quarters.

In 2019 binance held an initial exchange offering for elrond and sold 25% of the supply almost immediately the rest of the coins are split between paying rewards allocating grants and marketing the community fund the founding team and the advisors.

One last thing we want to mention about elrond’s tokenomics is that i’ve relatively checked the whale wallet list which is a list of the people who hold the most e-gold and most of the e-gold whales seem to be big exchanges like binance or crypto.com.

Which is usually healthy because you do not want one person holding a large amount of the e-gold token also eagle is relatively non-inflationary since it does have a limited supply and therefore usually price and demand positively correlate and therefore if demand goes up so will price.

Leave A Reply

Your email address will not be published.