Elrond is a blockchain-based platform and network built for high speed, security, and scalability. The network has implemented a new system in blockchain technology for scalability on the Internet.
There are three main characteristics of any developed blockchain network: scalability, security, and decentralization. Of course, it is almost impossible to access all three elements simultaneously on networks based on the PoW algorithm.
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Ethereum, for example, the world’s largest and most well-equipped blockchain network, has scalability problems when it uses PoW algorithms. But using the PoS algorithm, this problem can be solved.
What is Elrond?
Elorand (EGLD) introduced itself in 2019 as a scalable, secure, and fast blockchain with many applications in Internet economics. Elorand (EGLD) claimed that it could solve the scalability problem by optimizing 1000x the speed and cost of the network.
How Does EGLD Work?
Elorand used a unique pattern for comparability called Adaptive state sharding. This method also had an effective counterpart called Secure Proof of Stake or SPoS.
To understand Elorand (EGLD) correctly, you must first learn the two technologies and their differences and how they solved the comparability problem.
Elorand main features
Adaptive state sharding
The immobilization method for blockchain sharding required examination and measurement of all three types of sharding:
State sharding occurs when the state or the entire network history is divided into different shards. Each shard has its history, and the nodes only need to maintain the state in which the shard is located. So the amount of information they need is meager.
Transaction sharding: In this case, transactions are mapped to shards to be done in parallel with other shards based on specific information such as sender address. However, each node maintains the state of the entire network.
Network sharding: This method manages the behavior of nodes embedded in shards and interact with each other in an optimized way to achieve faster network speeds.
Adaptive state sharding is used to solve the problem of scalability by increasing the speed of communication between shards and optimizing network activity. In this method, all three types of sharding are used to solve the problem.
Shards are smaller parts of the Elorand network that are used for scalability. Each shard can manage different modes and perform transactions. For this purpose, each shard can complete part of a transaction in parallel with another shard.
Secure proof of stake (SPoS)
SPoS is another Elorand method for the consensus algorithm. This computational method eliminates the PoW algorithm by combining Eligibility Through stake into a miner or building a block based on its digital currency assets. In this method, scoring is done by selecting random verifiers to optimize the algorithm.
Elrond’s BFT-like consensus protocol provides a high level of security by randomly sampling consensus groups and combining nodes within shards to prevent network collusion.
Elrond VM
The Elorand virtual machine is also the engine for executing smart contracts based on WASM. The system provides more different programming languages for smart contract developers such as Rust, C / C ++, C #, and Typescript. Developers can write smart contracts in any programming language they are familiar with and then compile them in WASM.
Metachain
Metachain is a type of blockchain that runs on a specific Shard. In this blockchain, the primary purpose of the transaction association is to finalize the header blocks of each shard. Other features of metachain include the following:
- Facilitating communication between shards.
- Storing and maintaining a registry of validators.
- Triggering new epochs.
- Processing fisherman challenges.
- Slashing and rewarding.
- Nodes
Each node can be run from a computer, smartphone, or server with an Elorand client. Nodes work as an endorser, observers, or fishermen, each with different levels of access as well as rewards.
Validators are nodes in the Elorand network (EGLD) that convert stacks into EGLD tokens to enable transactions and participate in consensus processes. They also receive rewards through the protocol and transaction fee.
Observers are nodes that do not have a stake. They are passive network users who act as a read-and-relay interface. Observers are also considered Full or people who can read the entire blockchain history or Light: Faraday, who can have two Epochs from the blockchain history. Supervisors are not rewarded.
The Fisherman node verifies the block identity after proposing. They identify invalid blocks that have been created as scams and receive EGLD rewards. Fishermen can be endorsers not part of the current consensus or observer.
Conclusion
EGLD is the leading blockchain to Elorand. This token empowers the Elorand network and is a bit interface between users and developers who pay the transaction fee to the network and the verifiers who receive those costs as the service they provide.
The Elorand network uses a platform to build smart contracts, decentralized applications, and blockchain protocols. However, the EGLD token is a unit of value that can enable all activities on the network. The EGLD rules the network for Staking purposes and rewards the verifier.
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