Elrond eGold (EGLD), is the newest entrant into the cryptocurrency market from Elrond. It is a token that is used in governance and transactions. This brand of cryptocurrency is in the limelight for its extensive focus on the factor of scalability.
Scalability is a prominent attribute that most cryptocurrencies struggle with. However, Elrond tackles this issue head-on. Also, it aims to enhance the existing interoperability, decentralization, and security of the bitcoin network.
What is Elrond?
It is a platform whose functioning is based on blockchain technology. Along with blockchain, multiple other state-of-the-art applied techniques are incorporated in Elrond. This cryptocurrency was founded in 2017 by:
- Lucian Mincu
- Benjamin Mincu
- Lucian Todea
The Massive Scalability
Elrond aims to bring about a significant revolution in this domain with its varied approach on scalability. In order to achieve this target, Elrond enlists the help of the following factors.
Secure Proof of Stake (SPoS)
The Proof of Stake mechanism serves as a much-required alternative to the Proof of Work mechanism. Its important features are as follows.
- Proportionate Power Of Mining: A user’s mining power is directly proportional to the number of coins they hold.
- Enables Block Transactions: The number of coins that a miner holds will aid them to undertake block transactions comfortably.
- Low Risk: Compared to most other concepts that apply to miners, the Proof of Stake mechanism is safer and protects their welfare.
Some of the most common networks that use this mechanism include:
Adaptive State Sharding
Sharding is generally known to be an advanced scaling technique. It works towards the delegation of nodes and enables them to perform small fragments of work. The concept of parallel processing is introduced in block transactions in this method.
There are three different types of sharding. Their eminent traits are discussed below.
The mapping of transactions takes place through this form of sharding. The address of the sender can also play a key role at this juncture.
Messaging propagation and the optimization of communication are hastened effectively inside a shard.
The state sharding mechanism ensures that a shard holds only a portion of a state. Synchronization overheads are formed as a result of this movement.
Elrond Virtual Machine
An efficient abstraction layer is key to segregate the system internals and smart contract developers. The Elrond Virtual Machine (EVM) solves this purpose primarily.
The adapter mechanism enables the implementation of cross-chain interoperability. Asset custodians take custody of native tokens and issue them.
No Unusual Behavior and Bugs
Elrond uses the K framework to build its VM infrastructure. The definition of standard tools of analysis and type systems is made possible through this feature.
Verification and Modeling
The verification of smart contracts becomes possible with the K framework. Their requirements can also be modeled through this practice.
Roles of the Network
The Elrond network features multiple roles. They are classified into the following three categories.
They are a type of node that strengthens the overall security of the transaction. The transaction and protocol funds act as the rewards for them. This node participates in the consensus mechanism exclusively.
The importance of a read-and-relay interface is undisputable. The two types of this network are:
The validity of the blocks in the transaction requires constant validation. The Fisherman node serves this purpose primarily. All the invalid blocks are removed from the transaction through this action.
EGLD – An Overview
EGLD is the native token of Elrond currently. The market credentials of this token are as follows.
- Number of tokens in circulation: $18 million
- Ranking on cap charts: 62
- Total market capitalization: $1.6 billion
- Overall scalability: 15000 transactions per second
Maintenance of Constant Demand
The total supply of EGLD is always maintained at a level of 20 million. The per-person ratio of EGLD is 0.0025. Therefore, the requirement for this token will always be held at a constant degree.
Low Scope for Inflation
31.4 million is the supply limit of EGLD, theoretically speaking. However, this limit will not arise as the demand-supply gap is maintained in a consistent way. Maiar’s simplicity and the global distribution of this token will keep it economically viable.
Leeway for Future Asset Maintenance
A great deal of focus is levied on the compatibility of this token. The bandwidth capacity of this token is enhanced manifold as a result. With this feature, one can transfer value electronically with no struggle.
With the increase of adoption, inflation also sees a rise. Staking rewards are supplanted by the new supply and its transaction fees. The new EGLD supply will play a major role in the overall network security.
Four Phase Staking
The multiple phases that are included in staking are:
- Phase 1: Delegation queue (Incentivized)
- Phase 2: Queue of validators
- Phase 3: Open staking
- Phase 4: Advancement in existing staking features
A notable aspect of EGLD is its mechanism of self-funding, which ultimately helps it to become self-sufficient. A transaction through EGLD will send back a certain percentage to the Elrond Community Fund. It may also get burned as another alternative.
Buying and Storing EGLD
There are multiple marketplaces from which you can buy EGLD successfully. They include:
The storage of EGLD is also highly simplified at present with the advent of multiple organizations that cater to this purpose. Some of them are:
- Trust Wallet
- Elrond Web Wallet
Wrapping It Up
The significance of Elrond Gold is steadily increasing and becoming trustworthy amongst users. This native token has proved its mettle with its scope for scalability with zero compromises on security.
As a result, this token is being used widely in numerous transactions and financial endeavors currently. Several established marketplaces and storage platforms have made their foray into this domain, which further cements the reliability of EGLD.
Hence, you can invest in this token without any apprehensions!