Elrond Blockchain: Its Dynamics and Distinctive Features
Blockchain technology continues to reinvent the blockchain space with the launch of efficient and innovative networks. Talking about the first and second-generation blockchains, Bitcoin with its cryptocurrency-powering feature and Ethereum with smart contract functionality has sparked considerable enthusiasm and soon became promising blockchains.
However, these blockchain platforms had some limitations related to interoperability and scalability, which hampered their mass adoption. Elrond protocol addresses these limitations of first and second-generation blockchains to provide users with a more efficient and feasible blockchain ecosystem. Let’s decode the Elrond protocol and its various aspects.
What is the Elrond protocol?
Elrond protocol is a fast, secure, and scalable protocol with extremely high scalability. The network utilizes a proof of Stake consensus algorithm and relies on a sharded architecture. The Elrond protocol consumes less computation power than other blockchain networks since it’s based on a distributed computation protocol.
Elrond is also popular in requiring less custom hardware and energy consumption. This protocol doesn’t require a vast network of computers, and it requires average computers to run on. The network uses a revolutionary “sharding” technique to execute more than 10000 transactions, increasing the network’s bandwidth.
Why makes Elrond protocol unique?
- Elrond protocol is the first blockchain protocol to introduce a viable solution, combining the three sharding aspects: state, network, and transaction.
- Elrond’s architecture combines the “Adaptive” component, a novel architecture that enables dynamic network configuration required to maintain high security while ensuring scalability.
- The protocol adopts a unique consensus mechanism called Secure Proof of Stake, making the protocol more efficient than the blockchains using proof of work consensus. Secure PoS further offers higher throughput and fast block creation.
- Elrond becomes a unique blockchain since it can solve the complexities of the consensus and the scaling issues even though it requires low computation resources and an inexpensive network of computers- all at a low cost.
- Elrond is also unique for its high quality of developer experience and provides them with the ability to optimize any use case as required.
What challenges does the Elrond protocol address?
Lack of Decentralization
Elrond offers full decentralization, ending the role of a centralized entity and eliminating any chances of a single failure point as the network is distributed.
With robust security, Elrond enables the secure execution of transactions on its ecosystem as it prevents attacks of most attack vectors.
Elrond further stands out from its renowned counterparts in terms of enabling high scalability with the ability to perform up to 15,000 TPS and the block finality duration of six seconds.
Elrond consumes minimal energy and low computation resources to perform all its network operations, including the most complicated operations.
Elrond offers a competitive cost for data synchronization and storage, addressing the challenge of high-cost storage.
Considering that cross-chain interoperability is vital for progressive blockchains, Elrond enables unlimited interaction with the external networks.
What are the main components of the Elrond protocol?
Nodes and users
On the Elrond protocol, nodes perform all the transactions are executed via smart contract execution and value transfers. The users utilize the Elrond blockchain to sign transactions both for smart contract execution and value transfers.
The Elrond protocol validators verify transactions and generate blocks based on the network’s consensus model.
Shards are the essential component of the Elrond protocol that helps the network achieve high scalability. Each shard contributes to ensuring scalability to some portion of the blockchain’s state.
The Metachain runs on a dedicated shard and performs tasks such as authentication and finalization of shard block headers or facilitation of communication between shards.
Elrond uses EGLD (eGold), its native token, to pay for the execution of smart contracts, transactions, or rewards to validators.
Why should you choose Elrond for the development purpose?
Elrond’s current capability of executing transactions is 15,000 TPS. Such high speed encourages more blockchain developers to scale their projects with the Elrond protocol.
Elrond ensures high security for the data stored on the blocks. The protocol doesn’t choose validators based on staking; instead, the validators are chosen randomly to avoid manipulation.
Low-cost transactions or keeping the transaction cost competitive is essential to make blockchain projects more accessible to the masses and accelerate their adoption across all-sized industries.
Elrond protocol is compatible with developing diverse use cases, including decentralized applications. The protocol features Wasm, which is commonly known as Elrond Virtual Machine and it includes a series of programming languages like Rust, C#, and C/C++.
While scalability and low throughput are becoming the biggest challenges in the blockchain space, blockchain networks like the Elrond protocol are gaining traction across diverse enterprises. These blockchains are more efficient in developing real-world use cases that pair well with the changing demand of the industries. Elrond is also popular since it’s an open-source platform, which means anyone worldwide can access this blockchain ecosystem and start building solutions on top of it.