Elrond ~ A scalable value transfer protocol for the digital economy
We all know that cash transactions happen almost instantly. But, the story for cryptocurrency transactions is different. There are all sorts of other problems associated with their transaction speed and timing. In the cryptocurrency world, transaction speed means how quickly the transaction of money happens from person A to B. All cryptocurrencies have different speeds in this cryptosphere which sometimes makes them cumbersome to be used in real life.
As you enter the new and exciting world of crypto, one of the first things you will ask yourself will be about the differences between Ethereum vs Bitcoin. It’s quite baffling, right? , of all of them there must be shortcomings and strengths by that I will explain about the Elrond Network
What is Elrond Network ?
Elrond is a high throughput public blockchain focused on providing security, efficiency , scalability,and interoperability by employing two key elements: Adaptive State Sharding and a new Secure Proof of Stake consensus mechanism. Elrond’s network is built to ensure resistance to known security problems like Sybil attack, Nothing at Stake attack and others. In an ecosystem that strives for interconnectivity, our solution for smart contracts offers an EVM compliant engine to ensure interoperability by design.
Elrond steps up the scalability and interoperability game and proposes two new major assets to the blockchain. The scope is to create a novel blockchain architecture which goes beyond state-of-the-art and is designed for practical scalability via Adaptive State Sharding and Secure Proof of Stake (SPoS). In an ecosystem that strives for interconnectivity, their solution for smart contracts offers an EVM compliant engine to ensure interoperability by design, thus ensuring that Elrond Network will be relevant in an ever growing blockchains environment.
Elrond is a complete rethinking of public blockchain architecture, especially designed to bring a major overall improvement by being scalable, efficient, and secure while maintaining a sufficiently decentralized setting. To achieve this the team introduce a novel Adaptive State Sharding mechanism, enabling scalability as more nodes join the network by parallizing transaction processing.
On a consensus level Elrond proposes a novel mechanism called Secure Proof of Stake, introducing a random selection of the consensus group, stake plus rating as a fitness function for sybil attack prevention, and near-instant finality based on pBFT. To enable decentralized applications, Elrond is designed so that it is EVM and Ewasm compliant, supporting multiple smart contract languages and formal verification.
How it Works ?
Elrond works on the dynamic sharding mechanism that provides shard computation based on the number of active network nodes.
- Each node is rewarded in the network through the balancing of the shards through architectural equilibrium.
- The built-in mechanism for the automatic transaction of shards for improved latency.
- The shard pruning mechanism ensures improvement in bootstrapping and storage as well as an overall increase in TPS or transactions per second.
- By using the Binary tree mechanism, the wallet space is divided into the exact number of shards required in a certain epoch.
What is The Advantage Elrond Network ?
Elrond has been designed to overcome some of the major security issues like Sybil attack, Rogue-key attack, Nothing at Stake attack and many more. Elrond also ensures interoperability and a more comprehensive design system for improved performance of the blockchain.
Let us now look into some of the key features and advantages of the Elrond blockchain network.
- Elrond ensures high scalability into the blockchain. Through the Adaptive State Sharding mechanism, Elrond aims to improve scalability by 1000x and more nodes joining the network and hence more rewards.
- Improve in overall efficiency. Most of the earlier blockchain was based on Proof-of-Work or PoW consensus mechanism where each node is required to solve a puzzle in order to get the reward. This mechanism involved high energy consumption prevented double spending and also were susceptible to Sybil and DDoS attacks. Elrond is based on PoS mechanism and is more efficient and also consumes less energy. The Secure PoS or SPoS consensus mechanism allows random validators selection through stake rating.
- Improved security. Elrond has a special security mechanism to deal with threats like Sybil attack, Rogue-key attack, etc. A collective signature is taken for each node that participates in the process and the signature cannot be altered or influenced in any way. Validators are selected on the basis of last block signatures. The pruning mechanism and multiple signatures decrease the security issues to a great extent.
- Cross-chain interoperability through EVM compliance is implemented through an adapter
- Elrond is much more energy optimized and eliminates the energy waste via PoW consensus mechanism algorithm through SPoS sharding mechanism.
- Elrond operates on random selection through the sharding mechanism and also reduces selection time maximum up to 12 seconds.
- Adaptive State Sharding improves communication inside the shards, increases performance, and allows shards to change dynamically according to the available resources. The State Sharding mechanism is based on Binary Tree structure.
- It allows full decentralization eliminating any third-party intervention thus more privacy to its clients.
- Improved efficiency through minimal energy consumption and computations.
- Improved bootstrapping and storage intervention.
- High performance through the sharding approach.
- The shared storage pruning reduces storage requirements and bootstrapping time as well.
- ERD is the official token of the network.
Elrond is based on a highly scalable distributed ledger and as more and more nodes join the network there will be an increase in the overall output of the blockchain. There is a highly efficient team behind the Elrond network. The main idea is to improve the sharding process efficiency by introducing more regular clients into the network which will invariably reduce the overall cost with time.