In this post we will talk about the cryptocurrency Elrond (EGLD) token or also called (EGOLD) Token, this project has been going on for a while but these days it is in great growth and here we bring you all the information about Elrond and its EGLD token.
Introduction to Elrond (EGLD) or (EGOLD) Token
Elrond is a project that has received a lot of attention lately. Like many other projects before them, they focus on scalability. When I say a little attention I mean a jump of more than 5,000% in the value of your ERD cryptocurrency in less than 4 months! That was in early 2020, between mid-March and the Elrond mainnet launch in July 2020.
However, in September 2020, the ERD cryptocurrency underwent a change by moving to the new eGLD or eGold cryptocurrency. In addition to becoming the native cryptocurrency of the Elrond blockchain (all ERC-20 and BEP-2 tokens were exchanged), it also saw a redenomination from 1,000 ERD to 1 eGLD, which was in line with the changed economic caral that saw the total cryptocurrency supply drop from 20 billion for ERD to 20 million for eGLD.
You can read closer to the end of this article, when we cover ERD and eGLD tokens and Elrond project tokenomics.
However, we will note here that the eGLD token has also seen an increase of approximately 300% in the 5 months since its launch.
Scaling and performance is perhaps one of the most pressing concerns facing some of the chains of blocks larger in the present. We’ve all witnessed blockchain bloat and the inevitable frustrations that come with poor performance and slow transactions.
However, with so many competing solutions, is Elrond worth it? Can we justify the large increase in its price that occurred in response to the official launch of the Elrond blockchain mainnet? Given that after a short period of profit making on the token, it resumed its climb, it seems that it is justified for Elrond investors.
In this Elrond review, I’ll give you everything you need to know about the project. I’ll also take a look at the long-term outlook for the eGLD token.
What is Elrond (EGLD) or (EGOLD) Token?
Elrond Network is a public blockchain created to provide high-level scalability, interoperability and high performance. goal is to create a decentralized network that can provide the same or better performance compared to centralized networks, while also providing users with greater privacy.
Erond network comparison. via Elrond .
Elrond Network plans to achieve these goals through its unique Adaptive State Sharding technology and through the use of the Proof of Secure Stake (SPoS) consensus mechanism.
Elrond Architecture (EGLD) or (EGOLD) Token
Elrond network has several key pieces that make up the blockchain framework.
Nodes and Users – se are the two main pieces that keep the network running. Users implement transactions on the network, either as a transfer of value or as the execution of a smart contract. Nodes are the devices on the network that process these transactions both actively and passively.
Validator – se are special node types that provide block generation and consensus building in exchange for rewards. Validators must stake tokens to be eligible and are then nominated by other stakeholders. Other types of special nodes include observers and fishermen, which we will describe later.
Shards – Shards are smaller partitions of the Elrond network and are used for scaling – each shard is responsible for a part of the state (accounts, smart contracts, blockchain) and transaction processing, so that each shard can process only a fraction of the transactions in parallel with other chunks.
Metachain : Metachain is the chain of blocks that runs on a special fragment, where the main responsibilities are not transaction processing, but to notarize and finalize the block headers of processed fragments, facilitating communication between fragments, storing and maintaining a registration of validators, unleashing new epochs. , processing fisherman challenges, rewarding and cutting.
EGLD Tokens – eGLD token is what powers the network, acts as the entry point to the network, and provides the means to pay for transactions, dApp implementation, storage, smart contract execution, and validator rewards . transaction fees are split between the validators and the Elrond Community Fund.
Adaptive State Sharding Technology
Adaptive state sharding is a unique way to employ sharding technology, and while it has long been a database optimization technique, it has only recently been introduced to blockchain applications.
Fragmentation of the tree structure and redundancy of fragments between epochs. via Whitepaper .
Elrond is using adaptive state fragmentation to achieve a number of key goals:
- network will be able to maintain scalability without affecting the availability of the network. This means that no matter how many shards are present on the network, it shouldn’t affect status updates or network uptime.
- Determining the destination of transactions is easy to calculate and deterministic thanks to the fragmentation solution, enabling instant traceability and dispatch.
- adaptability of the network means that the fragments remain balanced at all times.
- state fragmentation solution employed by Elrond means that demand changes are handled without affecting network security.
Elrond Network divides its blockchain timeline into epochs and rounds. While it is possible to modify epochs by modifying the system architecture, for the most part, epochs have a fixed duration.
At the end of an epoch, the fragments are pruned and rearranged throughout the network. Rounds also have a fixed time span. As each new round begins, a new consensus group is randomly selected to perform a block.
Secure Proof of Participation Consensus (SPoS)
SPoS consensus mechanism used by Elrond was developed to enhance existing Proof-of- Stake solutions . It reduces latency on the network and allows any node in the shard to determine which members will be part of the consensus group at the beginning of each round.
Randomization is provided by the aggregate signature of the last block. Elrond’s team estimates that this reduces the time required to choose a consensus group to less than 100 ms.
Elrond fragmentation graphical representation. via Elrond Docs .
A weighting factor has also been introduced that serves to promote meritocracy between nodes while also considering the stakes. And Elrond introduces the Bellare and Neven multi-signature scheme that was designed to reduce the number of rounds of communication required in the signature algorithm.
As a more sophisticated version of Proof of Stake, its goal is to ensure that shard distribution is fair, and is a compromise between increased power and computational demands and security.
Elrond Network roles
Validator : Validators are nodes in the Elrond network that process transactions and secure the network by participating in the consensus mechanism, while earning rewards for the protocol and transaction fees. To become part of the Elrond network, a validator must submit collateral in the form of EGLD tokens, which are staked to align the incentives between the validators and the network’s goals. Validators run the risk of losing their participation if they collude to disrupt the network.
Observer : Observers are passive members of the network that can act as a read and relay interface. y can be Full, keeping the complete blockchain history, or Light, keeping only 2 epochs of the blockchain history. Observers are not required to stake EGLD tokens to join the network and are not rewarded for their participation.
Fisherman : node that verifies the validity of the blocks once they have been proposed. y challenge invalid locks resulting from adversity from malicious actors and are rewarded for their service. role of the fisherman can be fulfilled by validators who are not part of the current consensus round or by observers.
Elrond network performance
Elrond launched its mainnet on July 30, 2020. Developers seek to create a blockchain that is at the heart of a global, borderless and fully accessible digital economy.
This can be achieved by making Elrond a platform that uses a scalable value transfer protocol in conjunction with a simple implementation of decentralized applications (dApps). first app of its kind called Maiar was launched alongside the launch of the mainnet. Maiar’s mobile dApp, which is both a wallet and a fiduciary access ramp, has a number of features that relate to the broader goals of Elrond.
One of the key features Elrond offers is its near-instantaneous transaction throughput and linear scaling that will allow the network to grow. Elrond’s website claims that the network can process 250,000 transactions per second, and Elrond’s Adaptive State Sharding allows up to 260,000 TPS based on its recent testnet results.
platform also features reduced storage requirements and improved linear scaling as more nodes join the network. combination of linear scaling and parallel processing is the key that will allow Elrond to outperform today’s centralized solutions.
Interoperability between chains
In addition to efficient decentralization, Elrond also seeks to provide cross-chain interoperability. team wants to offer complete decentralization in hopes of minimizing the chance of bad actors exploiting a single point of failure.
team also hopes to do away with exchanges as the main point of interoperability between blockchains. Elrond Network has plans to allow full communication between various external services, starting with the implementation of the Elrond Virtual Machine (EVM).
Components of Elrond Virtual Mahchine
This virtual machine will support smart contracts written in Solidity, allowing users to create secure transactions between Elrond, Ethereum, and other ERC-20 tokens without using an exchange. Elrond VM will also have an adapter mechanism that will allow communication with other chains that include adapters to work with Elrond.
One of Elrond’s main goals is to develop a dApp ecosystem and that was very successful when the team launched the first dApp, called Maiar, along with the mainnet launch.
Benjamin Mincu, founder and CEO of Elrond, has called the Maiar mobile app the “gateway to the unbanked”, noting that “a large population of the world does not have access to banking services, they do not have access to infrastructure. existing financial system and, therefore, its opportunities for wealth creation are extremely limited «
Maiar is first and foremost an incredibly fast and privacy-focused browser, but it will also have a wide range of useful features. se include the ability to store, bet, send and receive eGLD coins. Users will also be able to buy eGLD tokens directly from the wallet using more than 150 different fiat currencies.
Elrond Maiar app in Apple’s iTunes store
Maiar has been received positively from the start, with a 4.4-star rating on the Google Play store and a 5-star rating on the Apple App Store . Unlike many new dApps, Maiar is fully developed at launch, with few bugs. It has a clean, easy-to-understand interface that is meant to make adoption by new users as stress-free as possible.
Elrond hasn’t released a roadmap for the new Maiar features, but we can bet it will include a connection to a dApp store and links to upcoming DeFi apps.
Elrond is fortunate to have a team of professionals with both technical and business experience.
CEO of the project is Benjamin Mincu , who started his blockchain experience as part of the core NEM team for 1.5 years. He led the marketing, business, and community building efforts to turn NEM into a global blockchain product.
Elrond’s CIO is Lucian Mincu , an engineer with 8 years of experience designing complex infrastructure and network solutions for clients such as the German government.
Some members of the Elrond team
Elrond’s COO is Lucian Todea , a successful entrepreneur who has over 15 years of experience investing in the tech space and is active in both the startup and blockchain spaces.
All of this has given him significant experience in management, business development, leadership and investment. In addition to his role at Elrond, he is also the CEO, partner, and founder of several tech startups.
entire team is comprised of 24 technology and business professionals, all of whom bring extensive experience, skills, and talents to the Elrond Network project. re are 7 additional consultants for the project who bring even more technical expertise to Elrond.
size and enthusiasm of a community can have a direct impact on the awareness and adoption of a cryptocurrency project. y have an impact on marketing and overall business volumes.
So I decided to take a closer look at the community behind Elrond.
First of all, they have an official group that has more than 29,000 members. Keep in mind that this is more than double the size of the group just 6 months before. I jumped on to get a better idea of the conversation and the conversation was quite interesting.
Convo in Elrond
n, on the traditional side of social networks, it seems that only have one account . This has just over 138,000 followers, which represents a jump of more than 800% compared to the 16k followers that they had only 6 months before. It’s safe to say that Elrond is generating a lot of interest since it launched its mainnet.
Also, the team is quite active in their business and shares helpful updates on the project. y also have an official blog that is kept up to date with content that keeps their community informed.
ERD token (discontinued)
ERD token was used to power the Elrond network, and it was the second token launched on the Binance Launchpad. initial capital offering of the lottery format ended on July 1, with Elrond Network raising $ 3.25 million. That sale offered 5 billion ERD tokens or 25% of the total supply of 20 billion tokens.
ERD token was a BEP-2 token while the network was running on a testnet. Since the launch of the mainnet, the Elrond team has announced a dramatic change in the token’s economic caral, which I will discuss in more detail below.
ERD tokens were sold for $ 0.00065 each during the IEO, and the winning lottery ticket holders received 461,538.61 ERDs, or $ 300 worth of value. re were a total of 10,833 winning lottery tickets.
Evolution of ERD price. via CMC
ERD price initially jumped higher after the IEO, trading above the $ 0.007 level. It fell from its highs and has been volatile ever since, trading in the $ 0.0027 and $ 0.0075 range.
As of August 5, 2019, the price was $ 0.002953, giving lottery winners more than 4x ROI.
However, that was only the beginning. In 2020, the ERD token fell to a low of $ 0.000569 on March 13. From there, the excitement for the upcoming mainnet launch started and the ERD price skyrocketed higher, gaining over 5,100% for the mainnet launch on July 30, 2020.
actual all-time high for the token was $ 0.029489 reached on July 27, 2020. price dropped after the mainnet launch, but still held well at the $ 0.024 level in early August 2020.
Mainnet launch and Tokenomics change
While the mainnet launch itself was obviously a big deal, the biggest announcement was the change in Elrond’s token economy. team made the decision to drastically reduce the total supply of ERD tokens from 20 billion to just 20 million.
Along with that, they also announced that a maximum of 11,415,927 new tokens will be issued over the next ten years. So the maximum total supply is now 31,415,927, which is significantly better than the previous caral as it is now capped. After ten years, no more tokens will be issued.
change was made to adopt an improved deflationary economic caral similar to Bitcoin and to build a more robust currency that could eventually become the global digital reserve currency.
change is expected to allow the token to serve as a low-cost unit of account and participation asset for now, while gradually reducing its stock to flow, which will incentivize users to have ERD in their wallets and use it as money.
Conversion of ELD tokens into eGLD. via Elrond’s Blog
Another change is to migrate the current ERD ERC-20 and BEP-2 tokens to a new native eGLD token that will be exchanged at a rate of 1,000: 1. That means 1,000 ERD tokens will be exchanged for 1 eGLD coin.
Along with that, the value of eGLD will be 1000 times greater than that of ERD. So if ERD is trading at $ 0.025 on the conversion date, it will mean that 1 eGLD will be worth $ 25.00. ERD to eGLD exchange was announced on August 28, 2020 and the eGLD token began trading on September 3, 2020, while the actual token exchange started on September 4, 2020.
Those interested in learning more about the economics and operational reasoning behind the switch from ERD to eGLD can check out the AMA that was implemented by the Elrond team after the mainnet launch.
An overview of eGLD
By changing the native currency of the Elrond network so dramatically, you can imagine that the Elrond team had very good reasons for doing so.
So here is an overview of the most important features and features of eGLD:
1. Designed for simplicity and global adoption.
When we look at the adoption of blockchain technology and cryptocurrencies, the biggest obstacle has been the inherent complexity of the new technology. Just try explaining blockchain and the usefulness of cryptocurrencies to the average person and you will quickly see that this is true. Elrond team saw this hurdle with ERD and knew that to reach over a billion people they needed to completely rethink and redesign the Elrond native currency tokenomy.
2. Store of digital value and global reserve.
When the Elrond team created eGLD, they knew it would be the core of all internal use in the Elrond ecosystem. y went further in designing it to create a strong store of value, similar to physical gold, but with functionality that could make it superior to gold in the long run.
By creating new ticker symbols that start with the prefix ‘e’, the team is making cryptocurrencies more intuitive and easier to understand. Additionally, it creates a logical and consistent diversion path for future digital assets and currencies.
Integrated into the eGLD design is the premise that the Elrond network will be compatible with other cryptocurrencies and with government-issued fiat currencies. Eventually, everyone will be able to take advantage of Elrond’s enormous bandwidth capabilities and offer ways to transfer value electronically. In the future, Elrond plans to create many new ‘e’ tokens that span fiat currencies, synthetic assets, and stablecoins.
3. Built-in shortages reinforce demand for eGLD
By reducing the supply of eGLD to 20 million, the supply of eGLD per person is 0.0025 eGLD per person. This stimulates demand for eGLD, assuming that owning several hundred eGLD now is similar to owning several hundred Bitcoin in 2010.
4. Betting incentive for the adoption of the validator
Validation nodes have a strong incentive to bet on eGLD and secure the network that comes from recently issued eGLD supplies over the next decade. Eventually, as adoption increases, the inflation created by the new offering is replaced by transaction fees to cover the wagering rewards. betting incentive increases by limiting the total supply of eGLD to 31,415,926 eGLD, to be reached in 2030.
5. Adoption reduces inflation and increases scarcity
By substituting transaction fees for issuance of new tokens, the theoretical limit of eGLD is lowered, contributing to token scarcity over time. Greater adoption of eGLD increases this dynamic and ensures that the theoretical supply limit of 31.4 million eGLD will never be reached.
Looking at the usefulness of eGLD, the strength of the Elrond network, and the potential adoption of Maier, it is clear that each is individually invaluable. However, when combined, they create a powerful ecosystem that can create a financial revolution similar to the industrial revolution experienced more than a century ago.
Given the fixed supply of eGold, combined with Maiar’s global distribution and intuitive simplicity, every new user who joins the application will be directly reflected in the value of eGold. So the question is, what will eGold look like with 1 million people using Maiar? How about 10 million or 100 million people?
Buy and trade eGLD
Since the coin was launched by the Binance Launchpad, it should come as no surprise that almost all of the trading volume is on the Binance Exchange . re are only a handful of other exchanges listing the coin, and the only other significant trade volume is on OKEx.
This means that eGLD’s liquidity is highly concentrated in one exchange. If there was ever a disruption with trading on Binance, then it could pose a risk to the broader liquidity of the token and thus negatively impact trading. It is unfortunate that this was the case with the ERD token, and there were no changes after the switch to the eGLD token.
Sign up for Binance and buy HOT tokens
That being said, however, the turnover on Binance is truly impressive. In fact, compared to similar market cap coins, Elrond has much higher tiers. This bodes well for the execution of a big block order on Binance.
To store your eGLD tokens, your best bet is to use the native eGLD wallet . It is a crypto wallet where you can securely transfer, receive and store your Elrond tokens, while interacting with Elrond dapps. You can also choose to use the Maiar mobile dApp, which acts as a wallet and much more.
Take note : that there is also an Eldorado coin that uses the ERD designation. Don’t confuse an Eldorado wallet with an Elrond wallet.
At the genesis of the mainnet, Elrond implemented a closed system of participation and delegation to help get the mainnet started. At that time, there were no inputs or outputs for deligators and validators.
In addition to driving a larger community, closed engagement and delegation were designed to create an economic deterrent to network attacks.
Once completed, the network went through a transition of delegation and participation in four phases as shown below:
- Phase 1 – Incentivized delegation queue
- Phase 2 – Validator queue
- Phase 3 – Open Staking
- Phase 4: advanced stakeout functions
Phase 1 (activated on October 14, 2020)
first phase created an incentivized queue for community members to delegate eGLD tokens and reserve a place in the queue, subsequently receiving rewards for their time spent in the queue. In phase 1, existing delegates were also given the ability to withdraw their delegation, allowing the first members of the queue to replace them. In phase 1, a minimum of 10 eGLD was required to join the queue.
In the first phase, the delegation was made to the nodes of the Elrond community. later phases open the delegation to the providers of participation. reasoning was to ensure that the fundamental nodes remained fixed in 1454.
Phase 2 (activated on December 1, 2020)
Phase 2 introduced features that allow any validator to stake and de-apply eGLD. Current validators looking to add new nodes and new validators wanting to create their first node were able to join the queue by betting 2,500 eGLD per node.
queuing system was used to maintain a list of new nodes that wanted to join the network, so that when an existing node stops participating, a new node can replace it on a 1: 1 basis from the validator queue. This was done to ensure that the number of nodes does not drop below 1,920, allowing to keep 3 shards and 1 metachain. It also allows a minimum of 80 additional nodes on the waiting list for additional shards. In phase 2, the APR remains at a maximum of 20%.
Phases 3 and 4
Phases 3 and 4 were supposed to be available 4-6 weeks after the launch of phase 2, but at the beginning of February 2021 we are still waiting for these next phases. When enabled, they will allow an increase in the number of nodes, the possibility of betting more than 2,500 eGLD per node, open delegation and a new soft auction system.
Phases 3 and 4 will include a proposal to the Elrond validators and the community to generate comments and feedback. transition to these phases is expected to also include the first community chain vote.
Elrond Network has been in the works for three years, and with the launch of the mainnet, it joins leading blockchain projects. fact that the project was endorsed by the Binance Launchpad is a good sign, indicating that Elrond was fully vetted by Binance and found to be a solid project.
increase in the price of the ERD token before the launch of the mainnet is also very encouraging, especially when you consider the lack of coverage of cryptocurrency exchanges for the token. This was also followed by an increase in the value of the new eGLD token, showing that the value of the token has staying power.
Certainly the team seems very competent, with a great skill set. So far they have performed very well, meeting deadlines and deliveries as promised. This is only valuable in the blockchain space.
With exclusive Adaptive State Sharding and Secure Proof of Stake, the project promises speed and scalability not seen in many projects. And the inclusion of support for multiple smart contract languages can only help as Elrond moves into the decentralized app space.
It’s an ambitious project, to be sure, and we’ll have to wait to see how quickly the team can continue to develop and implement solutions to determine the potential longevity of the project. While the project looks great on paper, you will need to remain nimble and nimble to stay ahead of the competition.
How to buy ELROND NETWORK (EGLD) Token?
You can buy C98 on all major cryptocurrency exchanges. exchange with the highest volume and lowest slippage is Binance. You can buy C98 using BTC, ETH, USDT, or BNB.
In our case for the tutorial we are going to buy it with USDT
STEP 1 To buy EGLD Token on Binance
- Logically the first thing will be to enter Binance, if you are not registered do it here.
Also read Ethereum vs Ethereum Classic: Who is your favorite cryptocurrency?
Once inside Binance, we have to buy USDT, we can do it with a credit or debit card in the “Buy Crypto” section.
STEP 2 To buy ELROND EGLD Token on Binance
- Once with our USDT in Binance, we have to buy EGOLD token and for that we are going to go to “TRADE” to then choose “CLASSIC”.
- Now once inside we go to the right side of the page and look for the EGLD Token and select the PAR “EGLD / USDT” and click on it.
STEP 3 To buy ELROND EGLD Token on Binance
- Once inside the Classic Market and selecting the EGLD / USDT Pair, we put the amount of USDT that we want to exchange for EGLD and we give it to buy.
- And voila, we have our EGLD Token on Binance.
I hope you liked the article and if so, share it on social networks and with your friends.
Featured image via Fotolia