Introduction to Elrond
Elrond Network is a novel blockchain architecture designed for practical scalability through Adaptive State Sharding and Secure Proof of Stake (SPoS). Their solution offers scalability while preserving security and decentralization.
On the other hand, it also ensures large-scale efficiency and sustainability through the elimination of intensive PoW energy and computational waste.
They also offer interoperability which is essential for the future of the blockchain ecosystem, which is why they intend for Elrond to be EVM-compliant and cross-chain interoperable.
Check more in their whitepaper.
Scalability is a challenge that the largest names in the crypto industry are struggling to deal with. According to Elrond’s whitepaper, several challenges must be addressed properly in the process of creating an innovative public blockchain solution designed to scale:
- Full decentralization – Elimination of the need for any trusted 3rd party, thus removing any single point of failure;
- Robust security – Enabling secure transactions and removing risks of any attacks based on known attack vectors;
- High scalability – Allowing the network to achieve performance at least equal to the centralized counterpart, measured in TPS;
- Efficiency – Conducting all network services with minimum consumption of energy and computational resources;
- Bootstrapping and storage enhancement – Guaranteeing a competitive cost for data storage and synchronization;
- Cross-chain interoperability – Incorporated by design, allowing unlimited communication between external services.
In order to start solving the said problems, Elrond was created as a complete rethinking of the public blockchain infrastructure, specifically designed with security, efficiency, scalability and interoperability in mind. Its main contribution is built upon two blocks:
- A genuine State Sharding approach – efficiently partitioning the blockchain and account state into multiple shards, handled in parallel by different participating validators;
- Secure Proof of Stake consensus mechanism – an improved variation of Proof of Stake (PoS) that ensures long-term security and distributed fairness, along with eliminating the need for energy-intensive PoW algorithms.
Use Case Analysis
The Elrond platform consists of multiple layers that add value to users in its ecosystem. Elrond Network’s goal is to completely redesign public blockchain infrastructure adding advantages such as:
- High scalability – similar or better throughput than its centralized counterparts,
- Efficiency – carrying out all network services using minimum energy and computational power,
- Robust security – allowing secure transactions and maintaining high security against attacks,
- Cross-chain interoperability – strong by design, enabling unlimited communications between external services.
In short, Elrond’s ultimate goal is to expand the blockchain infrastructure with their novel solution and provide a fast, scalable, and secure cryptocurrency with a high throughput network.
The platform will use its own native token named Elrond (ERD), which will act as a low-cost, high-speed cryptocurrency that can be used for processing a range of transactions. ERD’s role will be to govern the network because the SPoS requires nodes to hold significant amounts of Elrond Tokens in order to power the network and the consensus mechanism.
Team Behind Elrond
The team behind Elrond is full of individuals with lots of experience in related fields, including:
Beniamin Mincu (CEO):
- Ex NEM Core
- Blockchain startups
- 4 years of experience
Lucian Todea (COO):
- Entrepreneur, investor
- 5 startups
- 15 years of experience
Lucian Mincu (CIO):
- Infrastructure engineer
- Network solutions
- 8 years of experience
as well as advisors with relevant experience supporting the team.
To see the entire team and their experience, click here.
Community Supporting Elrond
- Telegram: 7,760 members;
- Twitter: 1,193 followers;
- Facebook: 347 followers;
- YouTube: 22 subscribers;
- Reddit: 25 subscribers.
Elrond Network also has a pretty active Medium blog, with highlights such as:
- Partnership announcement — Elrond initiates cooperation with Distributed Systems Research Laboratory (DSRL), of the Computer Science Department within the Technical University of Cluj-Napoca
- Partnership Announcement — Elrond Initiates Cooperation With Leading Payment Provider NETOPIA Payments
- Pre-sale start date: team’s estimate is mid-March 2019
- Main sale start date: team’s estimate is April 2019
- Total Token Supply: 20,000,000,000
- Total Tokens Offered: 8,000,000,000 (40%)
- Hard Cap: $5,000,000 USD
- Token Symbol: ERD
- Token Sale Price: not determined yet
- Blockchain Used: Ethereum at first, to be subsequently moved to own chain at Mainnet launch
- Token Standard: ERC20 at first, to be subsequently changed into native token at Mainnet launch
- Token Type: Utility
Stage 1 – Q1 2019 (Inception):
- Private Testnet launch with sPoS and Sharding
- Elrond Games
- Maiar Launch
- VM Integration
- Business Integration
- API + SDK
Stage 2 – Q1 2019 (Fundamentals):
- Public Testnet launch
- Funding round
- Stress testing – capture the bug
- Security audit
- Hackathon + use-cases discovery
- Palintir – Elrond privacy
- Elrond dapp store
- Elrond Wallet – UX + Alias + Multisig + Timelock
Stage 3 – Q2 2019 (Launch):
- MainNet Launch
- Token swap and staking
- Functional payment gateway
- Mobile wallets
- Hardware wallet integration
- Secure P2P messaging
Stage 4 – Q3-Q4 2019 (Expansion):
- MainNet Consolidation
- Real world integration
- Ecosystem fund
- Digital card integration
- Elrond DEX in wallet client
- Elrond Stable coin economy
- Digital identity
The intended use of funds
The team has an outline which they will present along with their complementary project (a direct use-case of the Elrond blockchain). They expect this to be around the beginning of March.
Elrond vs. Ethereum vs. Zilliqa
The Elrond team has done a great job comparing their platform to other similar platforms out there in terms of advantages.
One of their most popular competitors is Ethereum. In comparison to Ethereum, Elrond is superior in terms of reducing both energy and computational waste from PoW algorithms by implementing a SPoS consensus and using transaction-processing parallelism through sharding.
Unlike Zilliqa, Elrond pushed the limits of sharding by using not only transaction sharding but also state sharding. It also totally removes the PoW mechanism, using SPoS for consensus instead. Although both are creating their own smart engine, Elrond aims for EMV compliance for achieving cross-chain interoperability.
Elrond intends to join the biggest names in blockchain development such as Bitcoin, Ethereum, and Zilliqa. The existing platforms are not without issues like the need for high throughput and low-cost data storage which Elrond seeks to solve with its novel approach, along with providing an open and easily interoperable chain.
Elrond has a highly expert team running it, filled with professionals who obviously know what they are doing and are very open to sharing information about their work and goals through a range of social media channels.
All the accompanying documents are flawlessly done, although an outsider might find the whitepaper a bit too technical. In any case, simplified information can be found on their website.
The competition is fierce, but we have no doubt the team will provide a valiant effort to stand out in the crowd and offer something new to the industry. Creating a table where they compare their advantages to the largest names in the blockchain business shows their confidence in what they are doing and that they are not afraid of a little competition.
Q&A with Elrond Team
The team was very open to sharing the details about their platform for our Q&A section. Most of the responses were provided courtesy of Mr. Dan Voicu, the Head of Communication at Elrond, with the final quote from Mr. Beniamin Mincu, Elrond’s CEO.
1. Can you tell us about the current situation regarding the project’s development?
Elrond began at the end of 2017 fueled by a passion to solve what we thought were the most pressing problems in the space: scalability, efficiency, and interoperability.
The vision we set out with, was that Elrond should be a value transfer protocol. One that can scale, is fast, and is comparatively efficient. As we progressed, it became clear to us, that the digital economy consisted of two important parts: programmable money, and unstoppable applications. And Elrond could do both, because unlike previous blockchain iterations, it does not have to trade-off performance, for security and decentralization.
In terms of technical development, last year in November we have open sourced our first iteration which includes the Elrond node and wallet. This took an enormous amount of effort, and was done especially to validate our cross-shard transaction model. You can find it on our github page along with all the required documentation to run it. [ https://github.com/elrondnetwork ]
With the prototype released, we learned some insightful lessons about the limitations of Java libraries. Thus, Elrond Core has been rewriting it from scratch in GO for our testnet, to incorporate our new findings, and leverage drastically more optimized GO libraries.
Results could not be more promising. Initial internal testing shows a 30x improvement in throughput compared to our prototype. A feat practically impossible without the lessons from our prototype. Here is a short demo of the performance of our testnet:
— elrond (@ElrondNetwork) February 11, 2019
Our testnet is very close to launch and so far a lot of people have expressed interest in testing the network through our testnet form: [ https://elrond.com/testnet ]
2. Can you tell us a bit more about the plans for the future?
2019 is divided into 4 phases. The inception phase is focused on launching a test network with a working sharding model, efficient and fast secure proof of stake consensus, along with the Elrond VM, bringing support for EVM and Wasm contracts with formal verification. Building on this, we will feature the launch of a major product which has been in the works, effectively transforming our solution from developer first, to user first.
The second phase will focus on stress-testing, bug hunting, auditing, and heavy preparation for the Main net launch. It will also feature a new wallet with radical user experience, thanks to features like Alias, Multisig, and Timelock. To encourage play, integration and interaction for both curious developers and 3rd party organizations, we will offer an API/SDK with clear commands and instructions.
The third phase will feature Elrond finally going live. It will bring large efforts to fruition, presenting a fast, scalable and efficient architecture, with tools and competitive utility in place. Bootstrapping will begin with the launch, enabling token swaps, the staking mechanism, and incentivizing healthy node participation within the network. During this phase we expect a useful payment gateway to be up and running, mobile wallets to be released, and hardware wallets to be integrated.
The fourth phase will focus on consolidating our previously mentioned efforts, while pushing hard to expand through an internal ecosystem fund. This fund will strongly complement our efforts, encouraging ventures to create a more efficient DEX which leverages our architecture, build a novel stable coin mechanism for open finance, and offer a digital identity app that is simple and useful.
3. Would you like to leave a comment for your investors and followers?
We tend to exaggerate the impact of technology on the short term, but massively underestimate its impact on the long term. It’s clear that blockchains are early today, but they will undoubtedly transform economies tomorrow.