Elrond Coin is a native crypto currency used on the Elrond platform to pay network fees, stake and reward validators. Elrond was first announced in August 2019 and its mainnet went live in July 2020. Detailed information about what is Elrond coin EGLD and how does it work is in the rest of the article. For information about Theta Fuel (TFUEL) coin, you can check here.
What is Elrond coin (EGLD) and how does it work?
Elrond (EGLD) is the native token of the Elrond platform. Elrond is a blockchain protocol that aims to offer extremely fast transaction speeds using sharding. The project describes itself as a technology ecosystem for the new internet that includes fintech, decentralized finance and the Internet of Things. The smart contracts execution platform is reportedly capable of handling 15,000 transactions per second, a six-second delay, and a transaction cost of $0.001.
In addition, the main selling point of Elrond is its high scalability. This indicates that Elrond is the first blockchain network to implement network and transaction sharing. According to the economic paper, it aims to build its ecosystem and establish EGLD as a store of value asset.
To achieve this goal, the network runs on 2,169 validating nodes divided into four parts: three execution parts capable of 5,400 transactions per second, and a “Metachain”, a coordination part. Elrond’s adaptive location-splitting architecture completely fragments location, transactions, and networking. It can be scaled up by adding an additional piece when the transfer demand is not met. Tested 263,000 TPS runs in a public environment with 1,500 nodes from 29 locations grouped into 50 shards.
To increase adoption, the project also supports developers to build on the platform, allowing them to earn 30% of smart contract fees as royalties. In its first year, the company continues to supply EGLD tokens for a stake in the network, with verification nodes taking an annual share of 36 percent. Elrond uses what it calls a secure proof-of-stake algorithm where nodes must deposit EGLD tokens to participate in the verification process.
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