The Elrond platform is a blockchain that enables users to create dapps and cryptos that are fast, scalable, and secure. The platform allows users to run smart contracts without worrying about traffic congestion. Moreover, the transaction costs on the network are at best minimal.
Scalability is one of the most crucial and sought characteristics in blockchain networks. As developers find ways to speed up networks, reduce traffic, and improve transactions per second, scalability is at the center of many discussions. Scaling blockchains can be a mammoth task, as we have seen in the case of Bitcoin and Ethereum. This is where Elrond comes in, a blockchain platform that is highly scalable, secure, and fast. The platform helps with the scaling of blockchain environments. So let’s dive into what Elrond is and how it works!
What is the Elrond coin?
The Elrond platform is a blockchain that allows users to create dapps and cryptos that are scalable, fast, and secure. Thus, the platform helps build a new internet economy by resolving the traffic congestion problem on blockchain networks. The blockchain has been designed to provide high throughput: meaning, it can handle a lot of smart contracts all at once. In order to offer solutions for scalability, the platform offers fast transactions, a scalable environment, a user-friendly experience, and low transaction fees. The platform boasts up to 15,000 transactions per second with low transaction costs, making it one of the fastest blockchains in the world. The users of the platform range from developers, to business enterprises, and individual users. The platform can be used for various use cases and can help in creating multiple digital assets.
How does the Elrond coin work?
In order to support a scaling solution for blockchain, Elrond features Adaptive State Sharding (ASS). It splits the network into smaller sections that can be validated by the nodes… one at a time. This ensures that the network processes a lot of transactions while maintaining low transaction costs. In order to secure the network, Elrond uses the Secure Proof-of-Stake consensus mechanism, a variation of the PoS protocol. It ensures that the sections made by ASS are connected to a functional platform. In addition to this, Elrond has a WebAssembly-based virtual machine that supports the creation and execution of dapps. Moreover, Elrond uses a secure randomness beacon with BLS signing to make the randomness source unpredictable
The platform also uses the computational power from the network participants to support the system of smart contracts. The network participants are rewarded with EGLD (the native token). The computational power is then used by the developers to create decentralised applications and assets on the network.
The EGLD token
The EGLD token is the native governance and utility token of the Elrond network. The EGLD token is used as a “to pay for” network service fee. It allows users to conduct any network action. These actions may include submitting transactions (at $0.001), running smart contracts, and providing staking services by running a node. The token can also be used for staking, thus as an incentivization system. Network participants can stake EGLD on the network to run a node for rewards.
Elrond’s crypto-asset, EGLD, plays an important role in maintaining the network. Importantly, it can be used for sending and rewarding network contributors, as well as in running smart contracts. What’s more, if you own and stake EGLD, you stand to gain the sheer ability to vote on network upgrades. In the process, you are rewarded with a newly minted EGL that is proportionate to the amount staked.