Named after the lord of the Elvish Kingdom of Rivendell, the Elrond eGold is a blockchain network that runs on modern technology rather than Elven magic. Elrond (EGLD) is simply an inexpensive, efficient and scalable blockchain network that benefits both decentralized applications (dApp) developers and enterprise solutions. In this post, we will learn about it and also throw in some info on the US dollar for good measure. Let’s get started.
Elrond eGold (EGLD) And The US Dollar: All You Need To Know
What is Elrond eGold?
The Elrond blockchain is designed to provide decentralization, security and scalability for distributed applications and businesses. The project focuses on cross-chain interoperability, developer support and achieving maximum operational efficiency. Elrond Network calls itself an “internet-scale blockchain.” This means that unlike the relatively low throughput of other blockchain networks, Elrond is designed to handle transaction volume on par with major internet platforms. The Elrond Network team claims that their network can handle 15,000 transactions per second for just one cent per transaction. This is a huge number considering that the Bitcoin (BTC) network (you can trade bitcoin on bitcoin bank) can process an average of 7 transactions per second.
Elrond Network (EGLD) brings this outstanding network efficiency, Secure Proof-of-Stake (SPoS) consensus mechanism, an advanced sharding technology, Elrond Network’s native coin eGold (eGLD) and innovative validator network structure. reaching it together.
What is the eGLD project?
Elrond Network provides a platform designed for the distribution of smart contracts, decentralized applications (dApp) and even entire blockchain protocols. The operation of the network is supported by Elrond’s native cryptocurrency eGold (eGLD).
The eGLD coin is both part of the governance mechanism and used for staking and validator rewards. In the Elrond ecosystem, gas fees are also paid in eGLD coin.
The eGLD coin can be used with the Maiar Wallet cryptocurrency wallet. Maiar offers features to borrow, lend, send and receive money with eGLD as well as eGLD staking.
Who are the founders of the Elrond Network (EGLD) project?
Elrond Network was founded in 2017 by brothers Beniamin and Lucian Micu and Lucian Todea. The Micu brothers are known for their technology initiatives and business experience. Beniamin Micu, who is now also the CEO of Elrond Network, previously worked at Nem Core. Lucian Micu previously worked as an engineer at Uhrenwerk 24, Cetto and Liebl Systems; He co-founded MetaChain Capital. Lucian Todea is known as the founder and CEO of Soft32 company.
Elrond eGLD coin statistics
The Elrond Network native cryptocurrency eGold, aka eGLD coin, has a maximum supply of 31,415,926 eGLD.
eGLD coin was launched on September 3, 2020. Initially, 20,000,000 eGLDs were distributed. The distribution of these coins was as follows:
25%: Initial Exchange Offering (IEO)
19%: Private Sale
17%: Protocol Treasure
8.5%: Market Orders (CCP), Grants, Accelerator Pools
7%: Ecosystem Awards
2%: Community Fund
What makes the Elrond Network (EGLD) project special?
It stands out as an extremely long, fast and naturally efficient alternative for developing decentralized applications. Compared to the Bitcoin (BTC) network, which can process 7 transactions per second, Elrond Network can process as high as 15,000 transactions per second.
Elrond Network ensures security in the network with its own unique consensus algorithm, Secure Proof of Stake (SPoS), which includes a number of unique innovations. In the SPoS algorithm, validators only validate data held in their private part, rather than all data held on the blockchain.
Elrond Network also combines three standardized sharding methods (network sharding, transaction sharding, and state sharding) into a balanced high-performance system. This is called Adaptive State Sharding. Network sharding simplifies the way network nodes are assigned and mapped in specific shards. Transaction sharding is used to determine how transactions are mapped to shards. However, state sharding is the most complex and is what sets Elrond Network apart from its competitors.
What is Secure Proof-of-Stake (SPoS)?
Secure Proof of Stake (SPoS), as we mentioned above, is the unique consensus algorithm of the Elrond Network (EGLD) platform. Elrond Network nodes are a server, smartphone, or computer running Elrond node client software to transmit and process data over the network. While all Proof-of-Stake (PoS) networks use one node system to process data and create consensus, Elrond Network uses three specific node types:
Validators are the primary nodes in the Elrond Network. Verifiers are also responsible for processing transactions on the network in exchange for eGLD coins.
Observers are passive network nodes that read and transmit network information. Unlike validators, Observers do not have to stake their eGLD coins to join the network, but they are not rewarded for their service either.
Fishers are special nodes that validate or query block data after it has been processed by validator nodes. A Fisherman node receives rewards commensurate with its effectiveness in detecting malicious actors.
Elrond Network’s SPoS mechanism provides nearly instantaneous random validator selection with blockchain sharding. Blockchain sharding is the process of splitting the entire blockchain into smaller and more manageable datasets for maximum efficiency.
The Elrond Network (EGLD) whitepaper, which you can access, was published on 19 June 2019.
In the eGLD coin whitepaper, Elrond Network is described as “a new architecture that goes beyond cutting-edge technology by providing a true state fragmentation scheme for practical scalability, eliminating energy and computational waste, and providing distributed justice with a Proof of Stake (SPoS) consensus.”
Elrond Network (EGLD) FAQs
What does the Elrond Network (EGLD) do?
Elrond Network (EGLD) specifically redesigns the overall blockchain infrastructure to be secure, efficient, scalable and interoperable.
How does Elrond Network (EGLD) plan to solve the scalability issue?
Elrond Network (EGLD) uses an innovative version of sharding to solve the scalability issue.
What is Secure Proof-of-Stake (SPoS)?
Secure Proof-of-Stake (SPoS) is the Elrond Netowk network’s own unique consensus algorithm that supports the security and throughput of the network
What does eGLD coin do?
The eGLD coin is used to pay Elrond Network transaction fees, as well as distribute staking and validator rewards. The eGLD coin also gives its holders a say in the governance of the network.
How much is the eGLD coin supply?
The maximum supply of eGLD coins is 31,415,926.
The value of the US Dollar
Why is the US dollar valuable?
Even though the US dollar is no longer indexed to gold, it is still the world’s most valuable reserve currency. One of the factors that make the US dollar valuable is its reputation. The USA still has the reputation of being the only currency that has maintained the gold standard for many years. The pricing of oil in dollars as a result of the dominance that the US established over the Gulf countries, especially in the 1970s, is another reason that makes the US dollar valuable. The US dollar is also the dominant currency in international trade.
The US dollar circulates around the world while the currencies of many countries remain local. For example, while India produces value in Indian Rupees (INR) domestically, it imports and exports in US Dollars. Like many developing countries, India has to pay its foreign debt in US Dollars.
In addition, the USA is one of the countries that attract the most investment in the world with its strong and reliable economy. This increases the demand for the US dollar and makes this currency valuable.
Another reason that increases the demand for the US dollar is that people, especially in developing countries, turn to US dollars to protect the value of their money. Since the currencies of the developing countries are not as strong as the dollar or are constantly losing value, some of the people in these countries keep their money by converting it to the US dollar. In other words, the US dollar is also seen as a means of hedging inflation in developing countries.
Where are the US dollars printed?
The world’s most valuable reserve currency, the US dollar, was introduced in 1785. With the decision taken in 1792, the US dollar began to be minted in the US Mint, which was established on April 2, 1972.
The US Dollar is still minted at the US Mint in Washington today.
What is the Bretton Woods Agreement?
In July 1944, the United Nations Monetary and Financial Conference was held in Bretton Woods, New Hampshire, USA. II. The International Monetary Agreement, also known as the Bretton Woods Agreement, was signed as a result of the conference convened to shape the economy after World War II. According to the agreement signed by 44 countries, it was decided to determine the value of national currencies in terms of US Dollars.
With the agreement, the US dollar became the only national currency that could be converted to gold. Within the scope of the agreement, 1 Ounce of gold was equivalent to 35 US Dollars. The USA has agreed to convert the dollar to gold over this parity when there is an external demand.
Again, within the scope of the agreement, countries were given the opportunity to adjust the value of their currency against the US Dollar in case of possible imbalances and special circumstances. Such adjustments are called revaluation and devaluation. Within the scope of the agreement, the revaluation and devaluation rates were determined as 10 percent at the most. The IMF’s approval was required for the corrections to be made on this. The Bretton Woods Agreement remained in effect until 1971.