Elrond is a new blockchain architecture, designed for high throughput and fast execution speed. To achieve this, Elrond introduces two key features: an Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, which aims to enable linear scalability. The team says its smart contract platform can process upwards of 15,000 transactions per second, with six-second latency and low transaction costs, yet aims to remain permissionless, borderless, and globally accessible.
Elrond is built by a team of entrepreneurs, along with 13 engineers and researchers who have worked at various tech companies, such as Microsoft, Google, Intel, and NTT DATA, and have experience working with blockchain platforms.
The team includes two PhDs in CS and AI, multiple math, CS, and AI Olympiad champions, and a former member of the NEM core team.
Elrondis a distributed transactional computation protocol that relies on a sharded state architecture and a secure Proof of Stake consensus mechanism. While most other blockchain networks require custom hardware and high energy consumption, EGLD runs on average computers.
By employing sharding, a method of parallelizing data & transactions processing, Elrond’s performance will scale up with the number of computers joining the network, reaching more than 100.000 transactions per second while growing increasingly decentralized.
What Is Elrond ($EGLD)?
Elrond is a software that seeks to incentivize a distributed network of computers to run a smart contract platform that aims to prioritize scalability and low transaction fees. In this way, Elrond is designed to compete against major blockchains, such as Ethereum and Zilliqa, aiming to grow an ecosystem of decentralized applications and cryptocurrencies. It features Adaptive State Sharding as its scaling solution and a Proof-of-Stake (PoS) variation called Secure PoS to secure the network. EGLD also contains a WebAssembly-based virtual machine that can support the creation and execution of decentralized applications (dApps).
Further, developers will use the Elrond Integrated Development Environment to write and launch customizable programs that replicate goods and services on its platform. Elrond is powered by its native cryptocurrency, EGLD coin, which is used to interact with applications, send transactions, and incentivize actors supporting the network. For more regular updates from their team, you can check out Elrond’s Blog, which releases categorized updates for technologically or economically curious users.
What is the project trying to achieve?
The Elrond network is the first to present a viable solution where all the three aspects of sharding – state, network and transactions – have been implemented at once. Combined with its “Adaptive” component, this novel architecture allows for dynamic network configuration to maintain a high level of security while scaling with demand.
In addition to scaling through sharding, Elrond also approaches the consensus problem with a mechanism called Secure Proof of Stake, which mitigates potential attack vectors when compared to Proof of Work, while also enabling large throughput and fast execution.
By solving some of the hardest consensus and sharding problems in the blockchain space, EGLD is able to provide a very high level of performance on a network made of inexpensive computers, resulting in a very low cost per transaction. In addition to performance and cost, Elrond also stands out through the quality of the developer experience and the resulting boost in usability on the end-user side.
What is the unique selling point?
Developers, validators and businesses use Elrond to build a new internet economy. They give anyone, anywhere easy access to the digital economy, by bringing a 1000x improvement in blockchain speed, scale, cost and user experience.
Adaptive state sharding: The optimal approach to blockchain sharding needs to take into consideration advantages from all three sharding types: State, Transactions & Network. Elrond’s approach to increased throughput, called “Adaptive State Sharding”, combines all three sharding types into a solution that improves communication inside the shards and dramatically increases performance through parallel processing.
Scalability without affecting availability: Increasing or decreasing the number of shards should affect a negligibly small vicinity of nodes without causing downtimes or minimizing them while updating states.
Dispatching and instant traceability: Finding out the destination shard of a transaction should be deterministic, trivial to calculate, eliminating the need for communication rounds.
Efficiency and adaptability: The shards should be as balanced as possible at any given time.
Secure and Efficient
Central to Elrond is the Secure Proof of Stake (SPoS), a Proof of Stake governance mechanism that keeps the distributed network of computers running its blockchain in sync. Similar to traditional PoS, SPoS is used by computers running the Elrond software to secure the network, validate transactions, and distribute newly minted EGLD coins.
However, since Elrond’s network consists of shards rather than a single chain, its SPoS consensus mechanism is used to select validating nodes to produce blocks within a shard rather than the entire network. To achieve final settlement, validators must check the work of block producers and sync with other shards within the network. Once a batch of transactions is successfully appended to the Elrond blockchain, these contributors are rewarded with EGLD tokens.
Developer – Friendly
Elrond VM: The Elrond Virtual Machine is a dedicated smart contract execution engine built on WASM. It expands the family of languages available to smart contract developers to include Rust, C/C++, C#, and Typescript. This means you can write smart contracts in whichever language you’re familiar with, compile it of WASM and easily debug its WAT human-readable format.