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Elrond (cryptocurrency)

Topic: Finance

 From HandWiki - Reading time: 5 min
Short description: Cryptocurrency
Elrond
Denominations
PluralElrond
Ticker symbolEGLD
Previous namesERD
Precision52
Development
Original author(s)Lucian Todea, Beniamin Mincu, Lucian Mincu
White paperhttps://whitepaper.io/document/510/elrond-whitepaper
Initial release1 November 2018 (5 years ago) (2018-11-01)
Latest release0.16.1.1 / 17 November 2020 (3 years ago) (2020-11-17)
Code repositorygithub.com/ElrondNetwork
Written inGo (programming language)
LicenseApache license
Websiteelrond.com
Ledger
Timestamping schemeProof-of-work
Hash functionX11
Issuance scheduleDecentralized, block reward
Block time6 seconds
Block explorerexplorer.elrond.com
Circulating supply17.462.837.41 EGLD (May 2021)[1]
Valuation
Market cap$3 bln (May 2021)[1]

Elrond is an Blockchain-based cryptocurrency, that build on a open-sourse platform software that seeks to incentivize a distributed network of computers to run a smart contract platform that aims to prioritize scalability, known as EGLD. Elrond was projected in time-tested a Nxt protocol and was forked from the Bitcoin protocol.

History

Elrond was founded by Lucian Todea, Beniamin and Lucian Mincu in 2017 and is supported by Elrond Network, a company based in Malta dedicated to expanding the project. At the time, Elrond distributed its cryptocurrency as ERD coin, but, after the project launched its mainnet in July 2020, Elond changed its cryptocurrency to EGLD coin. The project then held a transitory event that enabled its investors to swap ERD for Elrond’s new EGLD cryptocurrency.[2]

In June 2019, the project conducted a private investment round raising $1.9 million from several angel investors. That same month, Elrond held an Initial Exchange Offering (IEO) that raised $3.25 million in exchange for 25% of its total token supply.[3] In March 2021, it was announced that DEFI uses a platform for its products based on the Elrond protocol. Also in the same month, Covalent announced such intentions.[4][5]

Design

Consensus mechanism

As of 2018 coins were mined using a proof of work algorithm with a hash function called "X11", with eleven rounds of hashing, and the average time to mine a coin was around two and a 6 seconds.[6]

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.[2]

Sharding mechanism

Elrond bypasses mining and instead requires a consensus of masternodes to validate a transaction, speeding transactions.[7][6] "PrivateSend" is intended to give users optional consumer-grade privacy; it mixes participating users' unspent Elrond before executing a transaction.[6] Sharding works by splitting the network into pieces, or shards, for nodes to only process a fraction of the network’s transactions. This practice is also implemented in competing other blockchains such as Zilliqa and Polkadot. Elrond’s transaction processing mechanism is called ‘Adaptive State Sharding,’ where nodes are split into subsets to verify transactions. Once the transactions are processed, the shards broadcast them to the metachain (Elrond’s central blockchain) where they will be settled. Of note, every 24 hours, one-third of the nodes validating transactions in each shard are reshuffled to a new shard, with the intent of preventing collusion among validators in each shard.[8][9]

Analogues

  • The Verge - is a decentralized open-source cryptocurrency which offers various levels of private transactions. It does this by obfuscating the IP addresses of users with Tor and by leveraging stealth transactions making it difficult to determine the geolocation of its users.[10] It uses the Proof of Work (POW) mining principle with multi-algorithm support and 5 different hash functions: Scrypt, X17, Lyra2rev2, myr-groestl and blake2s.[11][12]

References

  1. ↑ 1.0 1.1 https://coinmarketcap.com/currencies/elrond-egld//
  2. ↑ 2.0 2.1 "What is Elrond Crypto? | Elrond Coin EGLD | Kraken". https://www.kraken.com/en-us/learn/what-is-elrond-egld. 
  3. ↑ "Romanian blockchain startup Elrond launches crypto transfer app" (in en). http://www.romania-insider.com/index.php/elrond-crypto-transfer-app-feb-2021. 
  4. ↑ Protocol, DAFI (2021-03-12). "DAFI Partners with Elrond" (in en). https://dafiprotocol.medium.com/dafi-partners-with-elrond-14c63d5c5f7e. 
  5. ↑ "Covalent Partners with Elrond to Bring Data Accessibility to its Budding Digital Economy" (in en). https://www.covalenthq.com/blog/elrond-announcement/. 
  6. ↑ 6.0 6.1 6.2 Lee, David; Low, Linda (21 Jun 2018). Inclusive Fintech: Blockchain, Cryptocurrency And ICO. Singapore: World Scientific. p. 219. ISBN 9789813238657. https://books.google.com/books?id=HCpjDwAAQBAJ&pg=PA219. 
  7. ↑ Eha, Brian (26 June 2017). "Can Bitcoin's First Felon Help Make Cryptocurrency a Trillion-Dollar Market?" (in en). http://fortune.com/2017/06/26/bitcoin-blockchain-cryptocurrency-market/. 
  8. ↑ Prusty, Narayan (27 Apr 2017). Building Blockchain Projects. Birmingham, UK: Packt. pp. 19–21. ISBN 9781787125339. https://books.google.com/books?id=80EwDwAAQBAJ&pg=PA19. 
  9. ↑ "What is Elrond Crypto? | Elrond Coin EGLD | Kraken". https://www.kraken.com/en-us/learn/what-is-elrond-egld. 
  10. ↑ "Forensic analysis of privacy-oriented cryptocurrencies" (in en). Forensic Science International: Digital Investigation 33: 200891. 2020-06-01. doi:10.1016/j.fsidi.2019.200891. ISSN 2666-2817. https://www.sciencedirect.com/science/article/abs/pii/S1742287619302312. 
  11. ↑ "Energy consumption of cryptocurrency mining: A study of electricity consumption in mining cryptocurrencies" (in en). Energy 168: 160–168. 2019-02-01. doi:10.1016/j.energy.2018.11.046. ISSN 0360-5442. https://www.sciencedirect.com/science/article/abs/pii/S0360544218322503. 
  12. ↑ Li, Yannan; Susilo, Willy; Yang, Guomin; Yu, Yong; Du, Xiaojiang; Liu, Dongxi; Guizani, Nadra (September 2019). "Toward Privacy and Regulation in Blockchain-Based Cryptocurrencies". IEEE Network 33 (5): 111–117. doi:10.1109/MNET.2019.1800271. ISSN 1558-156X. https://ieeexplore.ieee.org/document/8642798. 
  13. ↑ "Can Bitcoin's First Felon Help Make Cryptocurrency a Trillion-Dollar Market?" (in en). https://fortune.com/2017/06/26/bitcoin-blockchain-cryptocurrency-market/. 
  14. ↑ Prusty, Narayan (2017-04-27) (in en). Building Blockchain Projects. Packt Publishing Ltd. ISBN 978-1-78712-533-9. https://books.google.com.ua/books?id=80EwDwAAQBAJ&pg=PA19&redir_esc=y#v=onepage&q&f=false. 

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