Elrond eGold

1. What is the Token?

• Elrond eGold, abbreviated as EGLD, is the native token of the Elrond Network, now known as MultiversX, used for network fees, staking, governance, and exchanges within the ecosystem.

• EGLD enables the operation of smart contracts, dApps, and transactions on the network.

2. Tokenomics

• EGLD’s tokenomics plays a pivotal role in the MultiversX ecosystem, covering network fees, staking, validator rewards, transactions, and smart contract operations.

• Staking in the EGLD ecosystem secures the network and rewards users, promoting consensus and engagement.

• New EGLD issuance is offset by transaction fees to ensure economic stability and controlled supply growth.

3. Market Data

As of today 27 July 2024, the price of Elrond eGold is ₹0 INR, with a 24-hour trading volume of 15996734.89 USD. The market capitalisation for Elrond eGold is 911827865.1USD. The circulating supply is 27232888 Elrond eGold, with the total supply also being 27238040 Elrond eGold.

4. Token Pros and Cons

Pros:

• The Elrond Network is capable of processing 15,000 transactions per second, ensuring high throughput for its users.

• It maintains low transaction costs, with fees approximately at $0.001, making transactions economically efficient.

• The network offers incentives through staking and provides rewards for validators, encouraging participation and network security.

Cons:

• The coin exhibits market volatility, affecting its price stability.

• The complexity of blockchain technology may hinder its widespread adoption.

5. Why Should You Invest in the Coin?

• Investing in EGLD is appealing for its scalability, low transaction fees, and growth potential within the MultiversX ecosystem, supported by innovative technology and a robust community.

6. USP of the Coin

• EGLD’s USP lies in its advanced sharding technology, enabling unmatched scalability and making it one of the fastest blockchains available.

7. Problem the Coin is Solving

• EGLD addresses blockchain scalability challenges, offering a high-throughput, cost-effective, and secure platform for decentralised applications and smart contracts.

8. Founder and Team Background

• Founded by Lucian Todea, Beniamin Mincu, and Lucian Mincu, the Elrond team combines technology and entrepreneurship to develop scalable blockchain solutions.

9. ICO Price

• The ICO price for EGLD (formerly ERD) was $0.650, raising $3,250,000 during its initial coin offering.

10. Risks Associated in Investing in the Coin

• Potential investors face risks such as market volatility, regulatory shifts, technological hurdles, and competition from other blockchain projects, along with the inherent complexity of blockchain technology and security concerns.

11. Whitepaper Insights

The Elrond whitepaper outlines a blockchain architecture designed to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism and a Secure Proof of Stake (SPoS) algorithm.

Adaptive State Sharding combines all three sharding types (state, transactions, and network) into a solution that improves communication inside the shards and dramatically increases performance through parallel processing. This sharding solution is adaptive, meaning it can dynamically change the number of shards to accommodate changes in network size and transaction volume.

The SPoS consensus mechanism is another cornerstone of the Elrond network, ensuring security, efficiency, and decentralisation. It introduces a random selection of the consensus group, an optimal dimension for this group, and an exactly fair and transparent incentive mechanism. Validators are selected through a rating system, which considers stake and past activity, ensuring that the chance of a malicious attack is minimised.

Elrond also implements a new virtual machine built on WASM, which allows developers to write smart contracts in any language that compiles to WASM, including C/C++, C#, and Rust. This opens up the platform to a vast community of developers.

The native token, EGLD, is used for network fees, staking, and rewarding validators. The tokenomics are designed to offer a deflationary model with a limited supply of tokens and a model that encourages holding and staking, as opposed to spending.

Elrond’s architecture is designed to facilitate the transition from a Proof of Work (PoW) status quo to a more energy-efficient and performance-oriented blockchain. The network is capable of handling upwards of 15,000 transactions per second (TPS), with a latency of 6 seconds and a transaction cost of $0.001, making it competitive with centralised payment systems.

The whitepaper also discusses the Elrond Network’s approach to interoperability, developer integration, and the creation of a sustainable ecosystem. The network’s governance is designed to be transparent and community-driven, with the Elrond community participating in important decisions through a governance model that includes voting and proposals.

In summary, the Elrond whitepaper presents a comprehensive solution to the blockchain trilemma of achieving scalability, security, and decentralisation without compromises. The network’s innovative technology, combined with a strong focus on user experience and developer support, positions Elrond as a significant player in the blockchain space.