Cryptocurrency Elrond (ERD): blockchain project overview, course and schedule, forecast and prospects
Elrond (ERD) is a blockchain platform that implements an adaptive sharding scheme for practical scalability and ensures fairness through the SPoS (Secure Proof of Stake) consensus mechanism. Emphasizes security against Rogue-key attacks, Sybil, Nothing at Stake, etc. Offers an EVM compatible engine.
In terms of throughput, it is much more efficient than centralized counterparts. The architecture can be seen as an addition to existing models, striving to strike a balance between decentralization, scalability and security. In a way, this is a revision of the blockchain architecture. To achieve this, the team developed a new adaptive state sharding mechanism that increases scalability as new nodes join the network.
From July 2, 2019, the IEO of the token will be held on the Binance exchange. In the course of the lottery, 5 billion ERDs will be sold.
|Name||Price||Market Cap||Supply||Change % (7D)||Performance|
Indicators of Elrond cryptocurrency on July 05, 2019:
|Maximum emission||20,000,000,000 ERD|
ERD token price to USD
This is a scaling technique based on classical database optimization principles, also known as horizontal partitioning. It divides the data into several parts, located in different environments. Breaking the network into pieces in the blockchain realm results in more transactions being processed and verified at the same time.
There are three levels of sharding:
- Dividing a network – that is, the process of allocating nodes into segments.
- Dividing transactions into segments, while all nodes together maintain the overall state of the blockchain.
- State separation is a technology that allows different segments to process only part of the state without repeating data between nodes located in different segments.
This dynamic model enables the network to adapt to an increase or decrease in the number of nodes without compromising decentralization and security.
Secure Proof of Stake (SPoS)
According to the concept of a regular Proof of Stake, the probability that a particular node will confirm a transaction grows depending on the volume of tokens supplied to it. SPoS expands on this idea. Elrond offers an improvement to reduce latency by allowing each node in the segment to define consensus group members. This opportunity appears because the signature in the last block acts as a factor in the random choice.
The scheme also significantly reduces the selection time (from 12 seconds to 100 ms). Also in Elrond, the consensus is improved by adding a rating. In addition to the available volume of tokens, this indicator is also taken into account in the selection.
Creation history and team
When the Internet was invented, communication gained great speed and bandwidth, it became possible to instantly access any information. Innovation steel is growing by leaps and bounds, as is the world’s economic production.
However, at the same time, powerful monitoring and control tools were concentrated in the hands of the authorities. There was a need to create a “new layer” of the Internet, which would retain all the functional advantages, but reduce the tendency towards decentralization.
Elrond’s creators got excited about the idea to change a lot in the Internet infrastructure, to provide a high level of social scalability, information confidentiality, censorship-resistant applications, new management models. Elrond is EVM and Ewasm compatible and supports several different smart contract languages.
Project CEO – Beniamin Mincu. He is a seasoned investor and businessman who has worked with blockchain startups for over four years. Previously, he worked in the NEM core team, doing marketing, helping to bring the project from the idea stage to the final product. He has invested in over thirty projects, including Zilliqa, Matrix, etc.
Advantages and disadvantages
✅ A lot of information about the team, experienced members.
✅ Active communication with potential users.
✅ A detailed site with many sections, FAQ, Whitepaper – makes it possible to thoroughly learn about the cryptocurrency.
✅ Increased throughput due to adapted sharding.
✅ Safe consensus mechanism.
✅ Compatibility allowing cross-chain operations. In particular, to launch Ethereum smart contracts, etc. on the Elrond blockchain.
❌ So far, there is a relatively small number of partners and institutional investors.
❌ Flawed PoS mining system.
In May 2019, a test network was launched, and on it you can create a wallet for storing coins.
You can also use one of the cryptocurrency exchanges, primarily Binance, which will list the ERD immediately after the IEO.
The structure of the distribution of rewards in the Elrond network is still being finalized. The main problem is to find a possible way to bootstrap the network, which would have strong economic incentives for validators and an adequate fee structure.
More details about the development have not been published yet. It is possible that declining inflation will be used to load the network and maintain a competitive fee structure. Determining the minimum node participation rate will lead to a gradual transition to a normal fee system and ensure a safe and efficient network. According to initial estimates, inflation will not rise by more than 2.5% per year.
Elrond cryptocurrency demonstrates a new approach to adaptive sharding, increasing security and throughput and reducing latency through built-in innovation.
The few weeks that the network worked in test mode did show promising results, confirmed by experts. So, according to preliminary estimates, the project has potential.