Elrond Network is a blockchain platform that provides extremely high network speed. The speed of Elrond is 10,000 transactions per second. It allows programmers to use the WASM VM engine to develop both enterprise and commercial decentralized applications.
It will handle all the stresses of modern applications and allows the masses to access the digital economy by its extremely fast and scalable nature. To know about the components and key features of the Elrond network, read this article till the end.
About Elrond Economic Model
The economic model that encourages users with competitive rewards introduced by Elrond is known as Elrond economic model. The ERD holders can earn passive income by either delegating their stake or serving as a validator for the network. Any blockchain platform cannot work alone. So Elrond has formed partnerships with various platforms like:
- Samsung blockchain
- Typing DNA
- Smart bill
- Netopia payment processing company
- Distributed System Research Laboratory which is part of the Technical University of Cluj
Elrond Network was developed with many differentiating factors that make it distinct from other networks. Ethereum is a network that uses proof of work consensus algorithm. This algorithm has many disadvantages. So Elrond network utilized proof of stake consensus algorithm for processing the plans.
Components of Elrond Network
Below given are the core components of the Elrond network and let’s see the role of each component in the network.
- Virtual machine
The virtual machine helps to remove all the intermediaries from the place where smart contracts are executed. Thus it is the component that makes Elrond network a trustless network.
- Adaptive state sharding
Adaptive state sharding is a component that reduces energy and wastage. It also ensures the practical scalability of the network. Each shard process a portion of the transaction and thus boosts communication between Elrond network shards and a portion of nodes. This increases the storage and transaction processing capabilities because of the sharing of resources.
- Proof of stake consensus
Proof of stake algorithm states that a person can mine according to the number of coins he/she holds. Proof of stake is created as an alternative to the proof of work, which is the first-ever consensus mechanism used by blockchain technology. The staking process involves, depositing a number of tokens into your system, locking it safe, and using it to mine the coins. For the Elrond network, proof of stake is an algorithmic channel through which sampling of network validators.
Characteristics of Elrond network
The most important characteristics of the Elrond network are listed below. Check it out.
- High scalability because of Adaptive state sharding
- Proof of stake consensus algorithm provides more security
- Most reliable and easy to use user interface
- Minimal computational wastage
- Low power translating cost
Elrond network is a high-performance network that can be used to launch dApps. This even helps to operate more potentially and provides scalability solutions.