Elrond is a public blockchain protocol that uses the proof-of-stake mechanism and sharing to carry out high-speed transactions. The company claims that it can process as many as 15,000 transactions per second with costs as low as $0.001. The time block involved is only six seconds long.
While other blockchain protocols need a lot of processing and computing power to execute, Elrond aims to be more accessible. It can run on regular PCs as well. The project not only serves the decentralised finance sector but also the fintech and IoT niches. As a result, they want to build an entire ecosystem of tools for the next generation of the internet.
What is the EGLD token?
The native token of the Elrond blockchain is known as eGold. This is used to reward validators, pay network fees and for staking. Elrond was first announced in 2019, and the mainnet went live in July 2020.
The project was founded by brothers Benjamin and Lucian Mincu, as well as Lucian Todea. They introduced it in 2017 as the solution to blockchain scalability, which was the most important problem according to them.
The maximum token supply is set at 31,415,926 EGLD, and this number will decrease as more transactions are processed.
Benefits of the EGLD token
Here are some of the pros of the project and the EGLD token:
Proof-of-stake consensus algorithm ensures security
To participate in the validation process, nodes are required to stake their EGLD tokens. From there, all the applicants are assigned a score based on their past activity, which influences whether or not they are selected. The nodes communicate with each other based on modified Boneh-Lynn-Shacham, or BLS multi-signatures to ensure security.
Several partnerships set up
Elrond has several partnerships that will help build the value of the EGLD token as well. Some of them include Ardana, Panther and Cudos. These partnerships could help increase the effectiveness of the project in the long term.
The company is trying to build its own ecosystem and establish EGLD as a store-of-value asset. It is unique since it can offer extremely high scalability. Also, state, network, as well as transaction, have all been implemented in it.
Moreover, in September 2020, the number of tokens in circulation was reduced by swapping their ERC-20 and BEP-2 tokens for EGLD. They set the supply exchange rate at 1,000 ERD for 1 EGLD and reduced the overall circulation from 20 billion to 20 million in the process.
Price Analysis for Short and Long Term
At the time of writing, the coin is trading at $198. The coin reached its all-time high value at $542 only two months ago but has since experienced a stark decline. The chart represents a rough head and shoulders shape.
According to WalletInvestor, the price of the token could climb to $573.614 by 2022 and $1,482.690 by 2025.
PricePrediction estimates that the token will be increasing to $365.28 in 2022, $1,131.17 in 2025 and $7,252.15 in 2030.
The token has experienced a dip in value since the start of the new year and is hovering around the $190-200 region. Considering the practical nature of the token, it might only be a temporary setback.
Elrond has a very strong project behind their coin, and its usefulness could result in large gains in the long term, as the predictions show. The tools of the new internet are only in their development stage, and the further development of blockchain technology will certainly result in massive growth for the coin.