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- 1 Elrond derives its value from its technical potential and the technology behind the project
- 2 Elrond works upon the secure Proof of Stake (POS) consensus mechanism.
Elrond is a blockchain-based platform for creating decentralized apps and cryptocurrencies to solve the problem of traffic congestion and scalability on blockchain networks.
The central asset in the incentivization system that rewards network participants is Elrond. It has a latency of six seconds, can scale with sharding, and offers attractive transaction fees of $0.001.
Elrond is essentially software based on blockchain that incentivizes network participants whose computational power supports the smart contract system. Developers can use this system to create decentralized applications and assets.
It is an elaborate software that facilitates the creation of Dapps and digital assets supported by smart contracts. The platform uses Adaptive State Sharding to scale the environment for developers and users. This is a technique that splits the network’s infrastructure to support the increasing number of applications and transactions on the ledger.
How Does Elrond Work?
Elrond uses the Secure Proof of Stake consensus mechanism, a variation of the traditional PoS protocol that ensures all separate partitions of the network split by sharding are connected into a functional platform on the ledger. Developers can use the Elrond Integrated Development Environment to create decentralized applications that mimic products and services.
Users can run smart contracts with several programming languages, including C, C++, and Rust, and can also build decentralized applications with the same set of languages.
The Nodes run the network to support transactions and secure the whole platform. Sharding is performed by splitting the network into smaller fractions so nodes can resolve fractions of transactions one by one, which prevents congestion and enables scaling.
The Secure Proof of Stake consensus mechanism synchronizes the nodes running the network to connect all the fractions that are separated by sharding. Now, due to sharding, Elrond can process a minimum of 12,500 transactions per second.
What Gives Elrond its Value?
Elrond is unique due to its use of sharding in the form of Adaptive State Sharding, which splits the network into smaller fractions so that nodes can validate transactions and network operations by resolving one partition at a time.
This ensures that the network can process thousands of transactions per second while only requiring low fees.
The Elrond project aims to create a new digital economy where decentralization and scalability are integral characteristics of its blockchain infrastructure. Elrond allows users to create new assets, and decentralized applications, and make transactions at low cost. The project is also unique as it supports enterprise-grade Dapps while enabling scaling and offering three programming languages to work with.
Conclusion
Elrond uses a Secure Proof of Stake consensus mechanism and Adaptive State Sharding to ensure the network remains functional. Developers can use the Elrond Integrated Development Environment to create decentralized applications. This platform derives its value from the technology beneath
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
