For any blockchain to thrive within the crypto space, the network needs to excel in three main regions:- Scalability, Security & Decentralization. This is pretty tough for the PoW mechanism to achieve which is employed by Bitcoin. While Ethereum tried to overcome the loopholes with PoS, scalability remains a major issue. Elrond, on the other hand, describes itself as a scalable, fast, and secure blockchain mainly for distributed Apps.
Frequently called the new Internet Economy, Elrond claims to address the scalability issue with 1000x improvement in speed, cost and also highly scalable with unique user experience. It is designed to compete against major blockchains like Ethereum, Zilliqa, etc. The native coin, EGLD, had an impressive start in 2021 and remained pretty active throughout the year. Currently, the asset is drowning in a deep well, yet the possibility of rebound does appear but at some distance.
What is Elrond(EGLD)-In Brief!
The Elrond platform is designed to focus on cross-chain interoperability to handle the transactional throughput at par with the major blockchain platforms. While the Bitcoin network handles an average of 7 transactions per second(TPS), Elrond claims to handle 15,000 TPS at a very negligible cost.
Elrond was founded by Lucian Todea, Beniamin, and Lucian Mincu in 2017 backed by the Elrond foundation that intends to expand the project. Further in June 2019, the platform raised $1.9 million through private investment from several angel investors. In the same month, Elrond held an Initial Exchange Offering(IEO) and raised $3.25 million, and sold nearly 25% of the EGLD’s total supply.
The platform is powered by its native token EGLD which has multiple use cases. Apart from being a governance token, it is also used as payment for transactions and smart contracts. The EGLD coin is facilitated by the native wallet of the platform Maiar Wallet which enables the users to transact over the network. The wallet offers crypto borrowing, staking, lending, sending, and receiving features.
How Does Elrond Work?
Elrond aims to grow an ecosystem of decentralized applications and cryptocurrencies by adopting two unique features:
- Adaptive State Sharding
The Elrond platform splits the network into multiple pieces or Shards so that only a piece of transactions are verified. Once the transactions are verified, the Shards broadcast them on Elrond’s blockchain called the Metachain. Nearly 1/3rd of the processed transactions are reshuffled every 24 hours to prevent collusion among the validators in each shard.
- Secure Proof-of-Stake(SPoS)
Similar to Proof-of-Stake, SPoS also required the nodes to secure the network by validating the transactions but using the Shards. The SPos mechanism selects the validating nodes within the Shards rather than the entire network. The validators are required to validate the transactions within the Shards. And once these validated blocks are synced with the Elrond Blockchain, the validators receive EGLD tokens as rewards.
Will EGLD Price Hit $1000 in 2022?
Elrond’s price had a gigantic rally in the recent past that spiked with 2x intensity and pace compared to the bull run in the first half of 2021. Woefully, the further downtrend was also massive which slashed the price by more than 65% bringing down the price to a 3-month low. Now when the EGLD price is attempting a recovery, huge selling pressure tends to nullify the upward trajectory.
Ever since the beginning of 2022, the EGLD price has almost plateaued and hence without any huge influx of volume, a drastic rebound cannot be expected. Moreover, the technicals also indicate a continuation of a narrow trend through the current month. However, the market sentiments tend to change within a short period, igniting a trend reversal. And hence in such a case, the EGLD price may aim to hit the immediate resistance around $340 to restart with the bull run to acquire a 4-digit figure soon.
|Year||Potential High||Potential Low|
|Next 5 Years||$2000 to $2200||$1780 to $1800|
Factors Impacting Elrond(EGLD) Price Today
Lightning-Fast Scalable Transactions
Elrond blockchain intends to solve the scalability problem by adopting a unique Adaptive Shredding mechanism. The platform claims to execute more than 250K transactions per second in testnet and nearly 15,000 TPS in the mainnet.
Maximum Security at Minimum Costs
The platform ensures the data to be secured by adopting cryptographic processes which are stored on millions of nodes(Computers). Moreover, the SPoS ensures high security by randomly selecting validators within 100 milliseconds or less which rules out manipulation.
EGLD Smart Contracts
Smart Contracts are usually not adaptable once launched but Elrond blockchain intends to address this issue by being more flexible, considering the change in the user requirements.
DeFi Adoption with an Interoperable Bridge
The growing DeFi market space on Elrond could be thriving in the upcoming years. A few of them have been developed by Orion Protocol that aims to leverage Elrond’s high throughput.
Where & How to buy Elrond(EGLD)
Elrond can be bought on all the major platforms including the most trusted Indian cryptocurrency exchange CoinDCX. We are the country’s first Unicorn aiming to expand the user base by offering ease of trade at a minimal cost. Here you can access a wide range of crypto assets including Bitcoin, Ethereum, Elrond, etc under one roof.
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