When Bitcoin was launched back in 2008, the potential of blockchain, the technology behind it, was very underestimated. Decentralized in nature, the network acted as a massive computer, with hundreds of miners operating and updating the records. Fast and efficient as it might have been, blockchain technology hit a wall eventually.
The issue resided in its ability to scale. As more and more users jumped on a blockchain, the sheer load on the miners to process the transactions increased. Limited transaction speed meant a lot of the token and coin movement was delayed. To counter this, people usually resort to paying an increased fee, incentivizing the miners to record their transactions first. The ever-rising competition among users leads to a slow network with high transaction speed, essentially slowing down the network to a point where it is cheaper to use traditional methods of communication and funds transfer.
Elrond: Global Scalability and Speed
Envisioned as a blockchain that would become the backbone of all online communication, Elrond Network has been built from scratch. It is a public blockchain system that has a high throughput that offers one of the leading blockchain security and speed-related innovations that other major networks lack.
A few features that set Elrond apart from the other are:
- Adaptive State Sharding: The ability to have parallel transaction confirmations instead of a serial method means a thousandfold more confirmations than the most efficient networks in existence.
- Proof of Stake: While major blockchains keep on debating the move over to Proof of Stake from Proof of Work, Elrond already uses the PoS consensus. This makes it highly resource-friendly and gives better security along with speed.
- Multiple Virtual Machine Engines: Rather than have a single VM that is bound to a specific coding, Elrond’s use of WASM Virtual Machine gives it a very strong secondary layer that supports smart contracts from different coding languages, allowing easy onboarding of users, tests, and eventual deployment.
DeFi 2.0: Autonomous Banking by Elrond
With 1.7 billion people around the world that don’t even have access to traditional and basic banking, Elrond Network has created a whole DeFi setup that is aimed towards bringing everyone, regardless of their finances and background, into the new world of economics. Elrond has identified three key metrics that a blockchain network should have: high bandwidth with low latency should be transparent and accessible globally.
A 6-second latency with thousands of transactions per second, completely transparent, and an average transaction cost of $0.001, Elrond fits the bill. Other aspects of Elrond that makes it the perfect blockchain system for the next iteration of DeFi are:
- https://elrond.com/: Hedging against volatility, stablecoins are the backbone of any modern financial system. Elrond supports a multitude of stable coins such as BUSD and other European fiat ones that are pegged to EUR, NOK, DKK, CHF etc.
- Non Fungible Tokens: With its own NFT standard, Elrond provides artists, musicians, and collectors the perfect opportunity to monetize their assets and sell them.
- Launchpad: Any party or individual can launch their decentralized existence, from their own platforms, tokens, and even running their organization on it.
- Swap: Automatic Market Makers are one of the cornerstones for any DeFi. These create market liquidity, allowing people to swap their tokens for others without the need of an intermediary like an exchange or a broker. At the same time, it allows liquidity providers the ability to passively earn. Elrond’s Swap feature will provide a seamless and near-instantaneous swap experience.
- Lending: Borrowing and lending is a basic financial tool and coupled with Elrond’s ability to support multi coding language smart contracts, lending, and borrowing are made as easy as possible.
- Synthetics: Tokenized financial instruments that represent an underlying asset, synthetics, and wrapped tokens create a whole new era of representing traditional assets, along with ownership and accessibility. You could be in China and own Tesla stock with a synthetic token.
- Bridging: The final step in DeFi 2.0, bridging allows other blockchains to connect with the Elrond network and bring all the different networks to merge into one massive distributed network that leverages the high speed and security of Elrond.
Maiar: Redefining Banking
Maiar is a blockchain-based mobile payment app that is using the scalability and speed of Elrond to create a whole new economy where people are able to send and receive money as easily as sending a message. Instead of using complex strings of characters such as public and private keys, Maiar uses the mobile number as the key identifier.
Want to send money to another person? Simply identify his or her wallet through their mobile number. There are no complex setup processes and no need to remember passwords or anything else. Leveraging Elrond’s massive TPS power, users are able to send money in a near-instant manner.
Using blockchain means that the service is not bound by any financial institution as an intermediary to send money, leading to high throughput. The service is decentralized, always online, and borderless. With Maiar, everybody is their own bank, carrying it in their pockets.
With more than 200,000 users already signed up, sending, and receiving money, Maiar has changed how people transfer value.
The Elrond Gold
Last summer, Elrond shifted from a testnet to mainnet and launched its network to the public. Powering the mainnet is their EGLD token. Swapping with a 1000:1 ratio from ERD to eGLD, the token powers the whole Elrond ecosystem.
The eGLD is available on the largest crypto exchanges in the world, including Binance and Bithumb. Currently, it is priced at around $130 with a $2.3 billion market capitalization. As the DeFi 2.0 phase launches, the token’s value is expected to only rise.
Read here our first article about Elrond Network: https://blockstern.io/elrond-network-a-blockchain-platform-for-the-new-internet-economy/