{"id":10994,"date":"2023-03-06T01:38:04","date_gmt":"2023-03-06T01:38:04","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10994"},"modified":"2022-05-18T00:35:16","modified_gmt":"2022-05-18T00:35:16","slug":"what-is-elrond-egld","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-elrond-egld","title":{"rendered":"What is Elrond (EGLD)?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-elrond-egld\/#integrantes_de_elrond\" >Integrantes de Elrond<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-elrond-egld\/#how_does_elrond_work\" >How does Elrond work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-elrond-egld\/#elements_of_elron\" >Elements of Elron<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-elrond-egld\/#token_egld\" >Token EGLD<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>There are more and more interesting <strong>projects<\/strong> in the world of cryptocurrencies. One of them is <strong>Elrond<\/strong>. If you don&#8217;t know what this project is about and you are interested in learning more about it, this article is for you. We tell you all about what Elrond is and how it works.<\/p>\n<p>Elrond is a project in which the main goal is to achieve a blockchain so fast and scalable that it can be used for<strong> finance<\/strong>, business use, among others. The team will try to make this possible through its adaptive state fragmentation <strong>system<\/strong>. This system allows transactions to be handled quickly by <strong>multiple<\/strong> <strong>validators.<\/strong><\/p>\n<p>The blockchain of this project stands out for its speed, as while Bitcoin can only confirm a maximum of seven transactions per second, Elrond claims to be able to perform <strong>15,000 transactions per second<\/strong> with a fee of just<strong> $0.001<\/strong> per transaction with instant completion. To top it off, Elrond also claims to have the ability to scale to hundreds of thousands of transactions per second as demand grows.<\/p>\n<p>The network&#8217;s <strong>high scalability and speed<\/strong> make it one of the first choice of <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-defi-o-decentralized-finance\/\">decentralized finance<\/a> developers. They use the blockchain to run their applications as well as other types of <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-dapp\/\">decentralized applications<\/a> (dapps).<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"integrantes_de_elrond\"><\/span><strong>Integrantes de Elrond<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Benjamin Mincu <\/b><strong>is the CEO<\/strong> of this project. Benjamin started his blockchain experience as part of <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-nem\/\">NEM<\/a>&#8216;s core team for a year and a half. In addition, he was the main leader of the marketing, business and community building efforts to succeed in turning <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-nem\/\">NEM<\/a> into a global blockchain product.<\/p>\n<p><strong>Lucian Mincu<\/strong>, is the <strong>CIO<\/strong> of Elrond. Mincu is an engineer with 8 years of experience in designing complex network infrastructures and solutions for high-end customers such as the German government.<\/p>\n<p>On the other hand we have <strong>Elrond&#8217;s COO, Lucian Todea<\/strong> who is a successful entrepreneur who has over 15 years of investment experience in fintech. He is currently active in both the startup and blockchain space.<img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que%CC%81-es-Elrond-EGLD1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD1-300x205.jpg 300w\" alt=\"Que\u0301-es-Elrond-(EGLD)\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/p>\n<div><\/div>\n<div><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_elrond_work\"><\/span><strong>How does Elrond work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The operation of this project is mainly based on the use of <strong>sharding or fragmentation<\/strong>. This is a technique that fragments data into smaller parts and distributes them in various networks or block chains. Each of these parts contains a number of nodes that process each<strong> transaction.<\/strong><\/p>\n<p>This operation is not only employed by Elrond, as it is also applied by other projects such as <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-to-mine-after-eth-2-0\/\">Ethereum 2.0<\/a>. However, Elrond differs from <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-ethereum-eth-and-how-does-it-work\/\">Ethereum<\/a> due to the fact that it implements three types of fragmentation. <strong>These are states, transactions and network<\/strong>. In addition, it employs parallel processing to speed up transaction times and handle a larger number simultaneously.<b><\/b><\/p>\n<p>Elrond uses a<strong> consensus protocol<\/strong> different from those we usually see as <a href=\"https:\/\/www.bitnovo.com\/blog\/que-es-proof-of-work-el-protocolo-de-consenso-de-bitcoin\/\">Proof of Work<\/a> or <a href=\"https:\/\/www.bitnovo.com\/blog\/que-es-y-como-funciona-proof-of-stake\/\">Proof of Stake<\/a>. The mechanism used by this network is known as <strong>Secure Proof of Stake Consensus (SPoS)<\/strong>. This mechanism was developed to improve existing Proof of Stake solutions. Among the benefits of this system is a reduction in network latency by allowing any node in the shard to decide which members will be part of the consensus group at the beginning of each round.<\/p>\n<p>This mechanism provides some <strong>randomness<\/strong> through the <strong>aggregated signature<\/strong> of the last block. Therefore, it is estimated that this process reduces the time required to choose a consensus group to less than<strong> 100 ms.<\/strong><\/p>\n<p>A weighting factor has also been introduced in the <strong>operation of this network<\/strong>, which has the main objective of promoting meritocracy among the nodes while taking into account the stakes. This blockchain introduces <strong>Bellare and Neven&#8217;s <a href=\"https:\/\/www.bitnovo.com\/blog\/que-es-una-cartera-multifirma-multi-sig\/\">multi-signature<\/a><\/strong> scheme. This<strong> multi-signature<\/strong> scheme was designed to decrease the number of communication rounds required in the signature algorithm.<b><\/b><\/p>\n<p>With this consensus mechanism, the project <strong>aims to ensure that the distribution<\/strong> of fragments is carried out<strong> fairly<\/strong>, thus increasing energy and <strong>computational demands as well as security.<\/strong><\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"elements_of_elron\"><\/span>Elements of Elron<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All this operation depends on certain vital factors for everything to run smoothly. Below we will see what these factors are and what role they play in its operation.<\/p>\n<ul>\n<li aria-level=\"1\"><strong>Validator<\/strong>: Validators are the nodes of the Elrond network in charge of processing transactions and securing the network through their participation in the consensus mechanism. For their work they get rewards from the protocol and from the fees charged per transaction. If a validator wants to be part of this network he must first provide collateral in the form of <strong>EGLD<\/strong> tokens. These tokens are staked to align the incentives between the validators and the objectives of the network. In case a validator acts in bad faith, as a punishment he will lose his contribution to the network.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Observer<\/strong>: Observers are passive members of the network that act as a read and relay interface. They can be \u00ab<strong>Full<\/strong>\u00ab, which are observers that preserve the entire history of the blockchain, or they can be \u00ab<strong>Light<\/strong>\u00ab. The job of Light observers is to preserve two epochs of blockchain history. To be an observer of the Elrond network it is not necessary to stake <strong>EGLD<\/strong> tokens, however, they are not rewarded for their participation.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Fisherman<\/strong>: These are nodes in charge of<strong> verifying the validity<\/strong> of blocks after they have been proposed. They do this by challenging invalid blocks resulting from adversarial <strong>malicious actors<\/strong> and, like the validator nodes, they are rewarded for their service to the network. This position in the network can be filled by <strong>validators<\/strong> who are not part of the current consensus round or by <strong>observers<\/strong>.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Shards<\/strong>: Shards are smaller <strong>divisions<\/strong> of the Elrond network. Their job is to improve the <strong>speed and scalability<\/strong> of the network. Each shard is responsible for a part of the state which can be accounts, smart contracts, blockchain, among others in addition to transaction processing. Each shard can process only a<strong> fraction<\/strong> of the transactions in parallel with other shards.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>Metachain<\/strong>: The <strong>Metachain<\/strong> is the blockchain running in a special shard. In this blockchain the main purpose is no longer the processing of transactions but the<strong> notarization and finalization<\/strong> of the block headers of the processed shard blocks in addition to other tasks such as storing and <strong>maintaining a register of validators<\/strong>, facilitating <strong>communication<\/strong> between shards, <strong>triggering<\/strong> new epochs,<strong> processing<\/strong> fishermen challenges, <strong>rewarding<\/strong>, among others.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><strong>eGLD tokens<\/strong>: The <strong>eGLD<\/strong> token plays a very important role in the network, as it is what powers the network. The eGLD token acts as the <strong>entry point<\/strong> for the network. It also provides the means to pay for transactions, the operation of dApps, storage in the network, the execution of <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\/\">smarts contracts<\/a> and the rewards given to validators. The fees charged for transactions are split between the <strong>validators and the Elrond Community Fund.<\/strong><\/li>\n<\/ul>\n<p>The Elrond network offers <strong>interoperability<\/strong> between blockchains. The team in charge of developing the network seeks to offer total <strong>decentralization<\/strong> with the idea of decreasing the possibility of malicious users exploiting a single point of failure. In addition, it also seeks to dispense with exchanges as the main point of interoperability between blockchains. This network also has plans to achieve full communication between various external services. Among its plans is the implementation of the <strong>Elrond Virtual Machine (EVM).<\/strong><\/p>\n<div id=\"image_1231099089\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que%CC%81-es-Elrond-EGLD.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD-300x205.jpg 300w\" alt=\"Que\u0301-es-Elrond-(EGLD)\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/11\/Que\u0301-es-Elrond-EGLD.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<h2><\/h2>\n<h2><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"token_egld\"><\/span><strong>Token EGLD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Elrond uses the <strong>eGld<\/strong> token (EGLD) in every space on the network. Before the launch of the mainnet in <strong>July 2020<\/strong> brought EGLD to life, the Elrond network used the ERD token, which is currently not operational. At the launch of the new token, the Elrond network allowed its users to exchange 1000 <strong>ERD<\/strong> for 1 EGLD after the launch of the mainnet.<\/p>\n<p>Following the launch, the development team decided to significantly reduce the total supply of ERD tokens from <strong>20 billion<\/strong> to a figure of only <strong>20 million<\/strong>. In addition to this large reduction, it was also announced that a maximum of 11,415,927 new tokens would be issued over the next ten years. As a result, the maximum total supply is currently <strong>31,415,927 tokens<\/strong>.\u00a0This was a significant improvement over the old model, as it is now capped. After ten years,<strong> no more tokens will be issued.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>There are more and more interesting projects in the world of cryptocurrencies. One of them is Elrond. If you don&#8217;t know what this project is about and you are interested in learning more about it, this article is for you. We tell you all about what Elrond is and how it works. Elrond is a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10994"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/6617"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}