The use of blockchain technology enables easy and secure transactions by eliminating the need for third parties. Sectors and businesses have already started to realize the benefits of blockchain applications. As use cases and applications increase, difficulties and challenges appear. One of the blockchain challenges is slowed transactions due to computer reliance. When there are more computers add to a public blockchain network, transaction durations get longer. It is also argued that too much computer reliance makes the blockchain sector an energy-intensive sector. Elrond, known as eGLD, is a project that aims to solve public blockchain problems. This paper investigates the Elrond Project by looking at its team, features and roadmap.
Who are the founders?
The Elrond project was incorporated by the Mincu brothers in 2017. However, the project was announced in 2019 and the Elrond Mainnet came into life in July 2020. While Beniamin Mincu works as CEO, Lucian Mincu is the CIO of the Elrond project. Before creating Elrond, they co-founded Metachain Capital which is a digital asset investment fund. Besides Metachain Capital and Elrond project, they have another enterprise called ICO Market Data that publishes analytics for initial coin offerings (ICOs). It is accurate to state that Mincu brothers are experienced in starting and growing a business. Therefore, the Elrond Team comprises professionals who are acknowledged in the crypto sphere.
“The next Amazon and Google will come up from the blockchain space”
-Beniamin Mincu
SPoS and Elrond
Elrond utilizes Secure Proof of Stake (SPoS) on its platform. the SPoS algorithm is a modified Proof of Stake (PoS) that enhances the network’s security. It provides a safe user experience to those who want to participate on Elrond Network. So, how does SPoS work? Node candidates register through a smart contract and stake a required amount of eGLD. Most importantly, Elrond applies a rating mechanism for the nodes. The project calls it ‘selective eligibility’ and through the use of selective eligibility Elrond differs from other blockchain protocols. Under SPoS, nodes are not delegated since they earn the position by constructing a good reputation (Elrond, 2019). What Elrond proposes with its SPoS is a democratic and just consensus model where the network is secured and environmentally friendly.
Cryptoeconomics and Elrond
It is known that whitepapers are the core elements of blockchain projects. When the Bitcoin white paper was released in 2008, no one -including Satoshi- knew that it would be regarded as a digital gold after a decade. Elrond is a relatively new project when it is compared to Ethereum and Bitcoin. However, the founders of Elrond have analyzed the growth of the crypto sphere and they came up with solutions to the existing blockchain problems. Mincu brothers wanted to design an efficient and highly scalable network. The project aims to be a platform where dApps (decentralized applications) can easily be constructed. Elrond embraces a deflationary monetary system with a supply model with whichasset inflation can be prevented.
Another fact is that high transaction fees have become a serious challenge for blockchain networks. This is why Elrond uses a sustainable economic model, which spends transaction fees on the continuation of the network. During the creation of new blocks, by each shard, Elrond Network rewards validators. First, block proposals get 10% of the block transactions. Second, 90% of block transactions are included in a pool and validators get their reward at the end of the epoch (Elrond, 2020).
Roadmap
Elrond project follows a well-designed roadmap to grow its ecosystem. Thereby, the project shares technical updates and collaborations daily. It has a hashtag called #hypergrowth100, to increase Elrond’s recognition. For instance, Elrond announced a feature that enables eGLD to be stored in Samsung Hardware Wallet on the 16th day of hypergrowth100. Francis Suarez, the mayor of Miami, is well-known for his pro-blockchain attitude in the crypto sphere. Suarez tweeted that he is open to exploring the idea of putting a small percentage of the city’s treasury in Bitcoin. Two weeks after, Beniamin Mincu visited Miami and met with Suarez to discuss opportunities. Combined with #hypergrowth100, Elrond proves that it gives enough importance to marketing and improvement.
Overall, Elrond Blockchain is designed to be a highly scalable network by underlining decentralization and security in transactions (Elrond, 2019). Elrond Network promises faster transactions which are around 15,000 transactions per second. On the other hand, SPoS algorithm makes Elrond unique and provides robust security. Additionally, smart contracts and dApps can be embedded on the platform. Together with this, a deflationary monetary system indicates that eGLD could be regarded as a store-of-value. It is possible to state that Elrond is still at an early phase. With this in mind, Elrond proves that it is a promising and well-rounded project.
