The Elrond Company
Elrond supports dApps, NFTs, and other types of transactions. The platform is also designed to handle high volumes of transactions. It can handle tens of thousands of transactions per second, more than what Bitcoin and Ethereum blockchains can handle.
History of the Elrond Company
Beniamin Mincu, Lucian Mincu, and Lucian Todea Elrond founded Elrond in 2017. Beniamin and Lucian Mincu (brothers) also co-founded MetaChain Capital and ICO Market Data, an aggregator of information around initial coin offerings.
Beniamin Mincu is currently the CEO of Elrond while Lucian Mincu is the CIO. Lucian Todea is the COO of the blockchain platform.
In June 2019, Elrond conducted a private investment round that saw it raise $1.9 million from several angel investors. The same month the project held an Initial Exchange Offering (IEO) and raised $3.25 million in exchange for 25% of its total token supply.
Elrond’s native tokens were initially known as Elrond with the symbol ERD. However, after the project launched its mainnet in July 2020 the native coins were changed to EGLD coins. ERD holders then received 1 EGLD coin for every 1,000 ERD coins they held.
Elrond’s Unique Features
Elrond stands out with its fast and cheap transaction costs. Its capabilities are possible due to several features, which include;
Sharding involves splitting a blockchain into smaller pieces known as shards, enabling nodes to only process a fraction of the network’s transactions. It is one way blockchains like Ziliqa and Polkadot are using to solve blockchain’s scalability problem. Elrond uses a transaction mechanism called “Adaptive State Sharding” that splits nodes into subsets to verify transactions. Once transactions are processed, the shards broadcast them to Elrond’s central blockchain (metachain) where they will be settled.
• Secure Proof of Stake (SPoS)
Secure Proof of Stake is similar to the Proof of Stake consensus mechanism. Instead of miners, Elrond depends on validators to validate transactions and new blocks to the blockchain. Because Elrond consists of shards instead of a single chain, validators only run nodes that verify transactions within a specific shard.
Transactions from all shards have to be synced, validated, and then written to the blockchain. Contributors to the successfully added batch of transactions get the staking reward via EGLD tokens.
##How Elrond Works
Elrond requires three key participants to work efficiently, validators, fishermen, and observers. The three, operate the Elrond blockchain simultaneously. They enable the Elrond blockchain to be highly scalable;
• Validators: Validators stake EGLD tokens to verify transactions and add new blocks to the Elrond blockchain.
• Fishermen: Fishermen verify new blocks after they are added to the Elrond blockchain by validators. Their job is to find invalid blocks and malicious actors participating in the network.
• Observers: Observers maintain the history of the Elrond blockchain. They are passive network participants who are ineligible for EGLD rewards.
The EGLD token is the native currency of the Elrond blockchain. It can be used for staking, to pay transaction fees, and incentivize validators. It can also be used for governance and smart contracts.
EGLD tokens have been performing pretty well since they first came into the scene. According to Coinmarketcap, EGLD coins are currently trading at $56.90 per coin. They are the 42nd largest cryptocurrencies in the world with a live market cap of $1,299,447,038.
EGLD coins have a max supply cap of 31,415,926. There are currently 22,895,867 EGLD coins in public circulation. The coins can be bought in various crypto exchanges including Binance.us, KuCoin, Gate.io, Bitfinex, OKEx, and Crypto.com.
You will need a crypto wallet that is compatible with EGLD coins before you can buy them. Some compatible crypto wallets include the official Elrond wallet, MetaMask, and Trust wallet. The digital coins can also be stored in hardware wallets like Ledger and Trezor.
Based in Malta, the Elrond Company is one company looking to solve one of blockchain’s greatest problems, scalability. The company’s blockchain network stands out with its features that enable it to handle high volumes of transactions cheaply.
While Elrond faces stiff competition from Ethereum, Cardano, and Polkadot, it has the capabilities to compete with them. Some of its features, Adaptive stake sharding and secured proof of stake, rival the leading blockchain platforms.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.