the bullish case for Elrond is very clear since the very first beginning, we’ve established Elrond to be one of the most interesting projects this season. The team despite not consisting of c-level executives from international corporations, has something that is much more important: “blockchain industry expertise”. These people are real, they work every day together in the office and they are doing it for a bigger amount of time than some of the already tradable projects that have not delivered anything despite raising millions. Elrond did not open any funding rounds until they had concept validated and tested which one and a half year of self-funded development.
The core team have been in the cryptocurrency space long-enough to learn the ins and outs
first you ought to see how Elrond solve the scalability issues, and it’s no secret that Elrond has done it best:
simply put, Elrond does horizontal scaling with State Sharding.
Zilliqa tries to solve scalability by addressing half of the problem, and that is by doing network and transaction sharding — so they bring some of the solution and they can process about 2500 TPS (2828 TPS with 3600 nodes). They do not solve the hardest of the problem which is state sharding.
State Sharding basically means for Zilliqa that every node in the network has to store the entire state of the blockchain. In very high throughput blockchains the storage requirements grow very fast. Elrond solves the storage problems, by also sharding state, so that every node in the network has to store just a part of the entire state, the one corresponding for it’s shard.
The optimal approach for blockchain sharding, needs to take into consideration advantages from all three sharding types (network/communication, transaction/processing, state/storage). Elrond’s approach to scalability and increased throughput, called “Adaptive State Sharding”, combines all three sharding types into a solution that will improve communication inside the shards, increase performance through parallel processing, reduce storage and scale almost linearly.
Allowing the number of shards to change dynamically according to the available resources (validator nodes) and network usage has a huge impact not only on the throughput, but also on efficiency. Our adaptive state sharding mechanism is based on a binary tree structure, once the number of shards has been computed; this number is used for a deterministic mapping of account addresses to shards. Transaction dispatching in shards is done also deterministically through the mapping of the sender and receiver account addresses to the designated shards. The almost linear scalability of our solution provides the backbone for surpassing the throughput of centralized counterparts
Elrond has no fear to put all the work at stakes:
Zilliqa still uses PoW in order to prevent Sybil attacks, while Elrond uses PoS, a much more energy efficient way to prevent Sybil attacks.
Elrond has proposed a novel approach to consensus called “Secure Proof of Stake” combining eligibility through stake and rating, random validator selection and an optimal dimension for the consensus group.
The consensus protocol starts by randomly sampling a smaller consensus group out of all eligible validators in the shard (for reduced communication) using a randomness source derived from the previous block’s signature. The randomness source is unpredictable before the signing of the previous block. The sampling is deterministic, meaning that every node can compute the list of validators in the consensus group and the first node to be selected is the block proposer.
The block proposer aggregates transactions into a new block and sends this block to the validators in the consensus group for verification. Each validator will verify the validity of the block, process the transactions and if everything checks out will participate in the pBFT consensus. The voting in the pBFT is done for every validator by sending a signature for a multisignature scheme. If the proposer collects more than 2/3 + 1 signatures from the consensus group members, the block is considered validated, the aggregated signature can be added to the block and the block disseminated in the entire shard. The next consensus group will be randomly sampled using the new signature.
there are smart blockchains and there is Elrond:
Zilliqa stores all the Smart Contracts in a single shard, while Elrond will distribute Smart Contracts among all shards in order to be able to parallelize Smart Contract execution.
The idea of decentralization and genuine blockchain interoperability are very close related to each other. Currently most of the interconnection and interoperability between different blockchains are conducted through exchanges and third party trading platforms. This defeats the purpose of blockchains not having third parties, while deteriorating the seamless and secured course of transactions’ processing. There is no “one protocol to rule them all” that will be adopted by all other blockchains, but Elrond’s approach will narrow the gap between most important blockchains.
In the first step, we target Ethereum Virtual Machine compliance: the ability to run smart contracts written in Solidity for Ethereum with little or no modifications, on the Elrond Virtual Machine. Our VM’s implementation will hide the underlying architecture isolating the developers of smart contracts from system internals ensuring a proper abstraction layer.
In the second step, we target Ethereum interoperability: the ability to exchange seamlessly Ethereum and Elrond without a trusted third-party. This way, transactions between Elrond, Ethereum and ERC20 tokens could be processed securely without a centralized exchange, where the user must have an account, does not hold the private key for his account and also maybe go through a KYC process where the anonymity is lost.
Important aspects that we will take into consideration when building our “bridges” are privacy and security. Processing transactions that go through our bridges will be intrinsically secured by multi party computations of the private keys associated to the temporary bridge accounts.
In the third step, we would go further with the interconnection and interoperability, targeting other important blockchains, both public and private, by expanding our bridges. This approach requires specialized adapters for each chain that is non EVM compatible and wants to operate with Elrond.
ELrond and IoT:
Elrond can handle the Internet of Things
Elrond Network can currently support more than 3,750 transactions per second per shard. This isn’t a theoretical figure, but the delivered performance of the live testnet blockchain. The unique aspect of Elrond Network is that, through Adaptive State Sharding, it can integrate more shards as network demand grows.
By layering the data trade of IoT devices upon Elrond, IoT devices will be able to abide under the terms of a smart contract and automatically swap relevant data with its fair value