Elrond is a blockchain-based platform. This platform is a total reconsidering of public blockchain infrastructure. Elrond’s technology lets corporate creators and developers make decentralized applications and run smart contracts on the blockchain platform. Public users can use Elrond as a gateway to the digital market.
Elrond is also attractive to enterprises. Companies that look for a way to lower costs with benefits like speed, security, and scalability prefer to use Elrond. Elrond’s network wishes to deal with security problems like Sybil attacks, which means a foreign identity attacks peer-to-peer networks due to lack of identity in networks.
Elrond’s native cryptocurrency is the EGLD coin. EGLD is used to power the Elrond network, interact with applications, send transactions, and incentivize users supporting the network.
What Is Elrond?
Elrond repeatedly describes itself as fast, secure, and scalable. However, there is a scalability issue. These three main features of a mature blockchain platform (scalability, security, and decentralization) cannot exist simultaneously in today’s digital world. They especially cannot exist simultaneously in PoW (proof of work), the algorithm that Bitcoin uses.
Elrond claims to solve this trilemma by improving the blockchain speed, scale, cost, and user experience. Elrond or ERD is the token on Elrond network. Users can pay all charges for processing transactions, running smart contracts, and rewards for various contributions to the network in Elrond tokens.
Elrond uses its own PoS (proof of stake), a mechanism that confirms transactions. This system allows users to check new blocks of transactions and add them to their blockchain. PoS prevents waste of energy.
Announced in 2019, Elrond describes itself as a platform for distributed apps, enterprise use cases, and the new internet economy.
Beniamin Mincu, Lucian Mincu, and Lucian Todea co-founded the Elrond platform in 2019.
Beniamin Mincu got his B.A. in Economics Management in 2011 from the German University of Sibiu. In May 2014, He got the job position of business marketing and community lead at NEM.io foundation. This foundation is the first Smart Asset blockchain in the world. Beniamin Mincu’s net worth is not currently available, but as of early 2021, the Elrond network was about 2 billion dollars.
Beniamin Mincu is the CEO, Lucian Mincu is the CIO and Lucian Todea is the COO at Elrond Network. The three Romanian brothers co-founded MetaChain Capital in 2016 before starting Elrond. MetaChain is a digital asset investment fund. This company’s focus was to support teams in the blockchain market. Beniamin was the CEO of this company until 2017.
Elrond widened its team in 2021 and now consists of professional developers, designers, and engineers from many well-known companies such as Microsoft, ITNT, and Soft32. They use the expertise of some advisors from popular companies like Google, Ethereum, NASA, and experts from GMU (George Mason University) and IU (University of Illinois).
The native cryptocurrency on Elrond is called EGLD, short for electronic gold. This token works as a medium of exchange between users and developers to power the network. These users and developers are the ones who pay transaction fees to use the platform, and those who take this money in return for the service they provide are validators.
Elrond provides a platform to organize smart contracts, dApps (decentralized applications), and even complete blockchain protocols. However, the EGLD coin is the token that enables these activities. EGLD manages the network through staking and validator rewards and payments for transactions and smart contracts.
Why Elrond (EGLD)?
Elrond gives access to its network usage through intrinsic utility tokens called Elronds (EGLD), in short ERDs. All costs for processing transactions, running smart contracts, and rewards for various contributions to the network will be paid in ERDs. References to fees, payments, or balances are assumed in ERDs.
Elrond is also the first network that employed all the state, network, and transactions aspects. When they have such an approach, they are allowing for a dynamic, scalable, and secure network architecture so more users would decide to use the platform.
Testnet is a sample of the blockchain, powered by software for testing without risk or the main chain. Testnet results show that the performance speed of this network has exceeded the speed of the Visa network.