Elrond is a blockchain platform that aims to have the ability to host smart contracts and decentralized applications (DAPPs). One of its main qualities is its great scalability, speed and security. The project aims to enter the business and economic spheres arising through the Internet.
Advantages and Disadvantages Elrond (EGLD)
The consensus system used by Elrond is the Secure Participation Test (SPoS). It is a governance mechanism whose mission is to synchronize the distributed network running blocks. In the same way as the PoS, the computers that are part of the network are responsible for protecting, validating transactions and distributing the minted coins.
However, the Elrond network is not a blockchain but consists of several fragments, i.e. implements Sharding as a measure for greater agility.
The new system makes it possible to reduce network latency, since any node can be the next when performing validation and block generation operations. This random mode of choosing nodes for validation ultimately means greater security.
The SPoS also serves for the selection of block dithering. To receive the reward, the validators have to verify the work done by the block producers and subsequently synchronize with the other shards within the network. finished the process, successfully added to the Elrond blockchain, these contributors are rewarded with EGLD tokens.
In addition the introduction of this system also results in greater decentralization, as the distribution of shards is done in a fairer way, by including the weighting factor where the meritocracy of the nodes is rewarded
Advantages of Elrond (EGLD):
- High speed, the network has a speed similar to that of Solana, with 15,000 transactions per second and is expected to exceed 100,000 transactions per second.
- Implementation of Smart Contracts and Dapps, also allows easy migration of these as its EGLD token is modeled with ERC-20.
- Deflationary model. Recently the platform adopted measures to convert its token into a more robust currency, such as ceasing issuance within ten years
Disadvantages of Elrond (EGLD):
- It is not fully decentralized. Although the project intends to decentralize in the future.
- Low number of Dapps developed in its network, compared to Ethereum.