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logoElrond (EGLD)

A Scalable Value Transfer Protocol For The Digital Economy.
  • Elrond is a high-throughput public blockchain focused on providing security, efficiency, scalability, and interoperability by employing two key elements: Adaptive State Sharding and a new Secure Proof of Stake ("SPoS") consensus mechanism.
  • Elrond's blockchain protocol for smart contracts & dApps can process over +10k transaction per seconds with low block times (5s), negligible transaction fees, and with fast finality for cross shard transactions in a matter of seconds.
  • The Adaptive State Sharding, works via shard merges & splits for unlimited scalability, and uses a fully sharded Architecture, which includes state, transactions, and network. This architecture is deemed highly resilient against malicious attacks due to validators shuffling between shards.
  • Elrond features smart-contract royalties, where 30% of the fees can be reallocated to the smart contract author.
  • EGLD is the native asset of Elrond and is used to pay for transaction fees and the cost of deploying dApps on the network, along with rewards for various contributions to the network.

1. What is Elrond (EGLD)?

Elrond is a high-throughput public blockchain focused on providing security, efficiency, scalability, and interoperability by employing two key elements: Adaptive State Sharding and a new Secure Proof of Stake ("SPoS") consensus mechanism.

Elrond's testnet is already live and can process upwards of 10K TPS, with 5-second latency and minimal cost (based on 5 shards). The Project aims to be a platform for easy deployment of programmable money and dApps, thus becoming the backbone of an open, permissionless, borderless, globally accessible internet economy.

Elrond's goal is to be a high throughput, fast transaction speed, and low transaction cost platform, allowing efficient and competitive dApp user experiences in real world use cases.

Elrond believes that its high scalability, fast transaction speed, and low transaction cost makes it well-suited for machine-to-machine transactions and the IoT economy.

Some of its key elements include:

  • Elrond is a high-throughput public blockchain aimed at providing security, efficiency, scalability, and interoperability via Adaptive State Sharding and a Secure Proof of Stake consensus mechanism.
  • Elrond is built by a team of entrepreneurs, engineers and researchers with technical experience at Google, Microsoft, Intel, NTT, a PhD in Computer Science ("CS"), and blockchain backgrounds, including being previously part of the NEM core team.
  • Elrond is currently in the testnet phase and aims to be a platform for easy deployment of programmable money and dApps, thus becoming the backbone of an open, permissionless, borderless, globally accessible internet economy.

Elrond is a complete redesign of blockchain architecture with the aim to achieve global scalability and near instant transaction speed. Elrond focuses on combining these key innovations:

  • State sharding (transaction, data & network sharding); adaptivity through shard merges and shard splits.
  • Consensus in two communication rounds with modified Boneh–Lynn–Shacham ("BLS") multi-signatures.
  • High resiliency to malicious attacks due to intra and cross shard node reshuffling.
  • Secure randomness beacon with BLS signing.
  • Smart contracts on a state sharded architecture with balanced load on shards.
  • Fast finality for cross shard transactions (seconds).

The Elrond mobile app Maiar offers internet users an intuitive first-time experience with blockchain technology, offering progressive security and a gamified approach to unlocking more useful features.

blockchain

The Elrond economic model has a capped supply and decreasing issuance, furthering scarcity with adoption. The token is named eGold (EGLD) to convey the notion of a digital store of value for the next billion users.

The Elrond Network is certified carbon negative by Offsetra, as it offsets more CO2 than the network is accountable for.

2. Blockchain and network data

The blockchain has low system requirements and can run on anything from an ordinary computer to T2 medium AWS machines.

The blockchain features epochs of ~24 hours and rounds of ~5 seconds. All the validators in Elrond's network will be split among multiple shards, where they will only have to synchronize the state for the current shards and process transactions only for their current shard. In order to prevent collusion amongst validators, up to ⅓ of the validators in a shard will be reshuffled to other shards at the end of every epoch. Liveness is not affected by this because the fast state synchronization for the newly reshuffled validators needs to synchronize only the state for the current epoch (~24 hours timeframe), while the remaining ⅔ of the unshuffled validators in the shard can still process transactions.

Each shard will consist of 400-600 validators and have a separate chain, accounts and application state. The consensus group (currently set to be n=63) changes every round based on a randomness seed stored in the previous block's header. These validators in the consensus group need to agree on the proposed block in every round of every epoch.

Based on the randomness source in the previous block, n validators are chosen using a deterministic function. Every other validator in the shard can compute the n validators and verify the correctness of this nomination. The first selected validator will be the block proposer for the current round.

The block proposer signs the previous randomness source with a BLS single signature to generate the next randomness source, creates a block with transactions, adds the new randomness source in the block header and broadcasts this block to consensus group members.

Each member validates the block, also validating that the new randomness source is a signature verifiable with the leader's public key on the old randomness source. If both are valid, it creates a BLS signature on the proposed block and sends this back to the leader.

The block proposer selects from among all received signatures, creating a subset of at least ⅔*n + 1 signatures, and creates a bitmap for his selection, where B[i]=1 if the ith member of consensus group was selected and B[i]=0 otherwise. The proposer then aggregates the signatures and attaches the bitmap and signature to the block. It must also sign the end result to "seal" the configuration for (B[ ], aggSig) before propagating the resulted block through gossip inside the shard.

Cross-shard transaction processing

For an in-depth example of how the cross-shard transactions are being executed and how the communication between shards and the metachain occurs, the entire process is illustrated using the simple two shard case and the metachain as shown in the figure below.

blockchain

The strategy for processing one cross-shard transaction is to use an asynchronous model. Validation and processing is done first in the sender's shard, notarized in the metachain and then finalized in the receiver's shard.

  • Step 1: The cross-shard transactions are first processed and added to a block in the sender's shard. The transaction value has thus been deducted from the sender's account.
  • Step 2: The block header is sent to the metachain where it is added to a metablock.
  • Step 3: The metablock arrives in the destination shard and then needs to be processed there. The destination shard requests the transaction from the sender's shard (if missing).
  • Step 4: The transaction is then added in a block in the destination shard and the block header is sent to the metachain. As a result, the transaction value has been added to the recipient account.
  • Step 5: The metachain notarizes the block that includes the processed transaction in the destination shard and the transaction is then finalized.

This iteration consists of static state sharding, secure proof of stake consensus, Schnorr signature for transactions, BLS signatures for random seed generation, and modified BLS multisig for blocksigning.

Metrics that are being monitored to check improvement of the network include: latency, bandwidth limitations, running each validator node on a separate machine with very limited compute power (average dual-core CPU with 4GB of memory), and different geographic locations.

Key stats for the current testnet are as follows:

  • Sharding setup: 5 Shards + Metachain
  • Nodes: 500 x AWS T2.medium (validator nodes) and AWS 12 x T2.large (observer nodes)
  • Nodes per shard: 83
  • Consensus: BLS round every 6 seconds on each shard
  • Consensus size: 63 nodes per shard
  • Max-Blocksize: ~800KB
  • Peak-TPS: ~12,500

The team is working on improving the network stack used for communication to reduce the bandwidth and network overhead within the consensus group of each shard.

Another improvement from the initial prototype architecture, has been upgrading the consensus model to reduce the number of communication rounds between consensus groups on each shard from 5 to 2.

An illustration of Elrond's latest implementation of Secure Proof of Stake is as follows:

blockchain

An illustration of Elrond's Adaptive State Sharding Approach is as follows:

blockchain

The upcoming testnet releases will include a public adversary game (Battle of Stakes) that will combine all the metrics together and will produce the highest level of stressing the protocol, allowing us to improve and find new opportunities for improvement. New stress results will follow in the upcoming weeks.

Development toolkit

Writing Smart Contracts on Elrond is made easy by frameworks in Rust, C, C++ and other languages compiling down to WASM. The erdpy back-end is a complete CLI & Python SDK for building, deploying and interacting with Smart Contracts. The erdjs framework allows for front-ends to be deployed using TypeScript & JavaScript and makes testing easy with tools such as Mocha.

The Elrond Integrated Development Environment is available via the Microsoft marketplace as a Visual Studio Code extension. Its integration with the SC framework allows developers to focus solely on smart contract logic and handles boilerplate code, dependencies and inheritances, while offering a transparent debugging interface.

3. Economics and supply

3.1 Key metrics

Token NameEGLD
Token TypeBEP2 in testnet phase
Total Token Supply20,000,000,000 EGLD
Initial Circulating Supply7,498,333,333 EGLD (37.5% of total supply)
Launchpad Allocation5,000,000,000 EGLD (25% of total supply)
Launchpad Sale Token Price1 EGLD = 0.00065 USD (price in BNB TBD)
Launchpad Raise3,250,000 USD
Private Sale Allocation3,800,000,000 EGLD (19% of total supply)
Private Sale Token Price1 EGLD = 0.00050 USD
Private Sale Date (start to end)April 2019 - May 2019
Amount Raised Private Sale1,900,000 USD

3.2 Token supply distribution

  • Launchpad sale tokens comprise 25% of total supply.
  • Private sale tokens comprise 19% of total supply.
  • Team tokens comprise 19% of total supply.
  • Reserve tokens comprise 17% of total supply.
  • Advisors received 2.5% of total supply.
  • Ecosystem Rewards tokens comprise 7% of total supply.
  • Marketing tokens comprise 8.5% of total supply.
  • Community tokens comprise 2% of total supply.
ERC token supply distribution (%)

Private Sale overview

It was conducted in April and May 2019 for 3,800,000,000 EGLD at a rate of 1 EGLD = 0.00050 USD and raised a total of 1,900,000 USD, selling 19% of the total token supply.

Binance Launchpad Sale overview

The sale was conducted in June 2019 for a total raise of 3,250,000 USD worth of BNB at 0.00065 USD per EGLD token, selling 25% of the total token supply. EGLD/BNB exchange rate will be determined prior to the date of sale.

Elrond token ecosystem

The Elrond token (EGLD)'s uses include, but are not limited to: payment for transaction fees and payment for the cost of deploying dApps on the network and rewards for various contributions to the network.

During its first few years, the project's main focus will be on establishing Elrond as a global public utility within the internet ecosystem, offering a scalable, efficient, and interoperable blockchain architecture, only accessible through EGLD tokens. All activity within the network (i.e., making transactions, running smart contracts, providing services like staking, or running a validator node) will be fueled by the EGLD token. Both startups and large-scale enterprises will be able to build decentralized applications on top of Elrond's network and integrate Elrond as part of their infrastructure solution for products and services.

3.3 Token governance and use of funds

As of the June 2019, Elrond has used approximately 5% of TGE funds according to the breakdown below:

  • R&D - 62.00%.
  • Operational - 17.00%.
  • Marketing/PR - 11.60%.
  • Business Development - 5.50%.
  • Legal & Audit - 3.90%.

Elrond plans to hold sufficient fiat reserves to fund the operational costs for at least 18 months. The rest of any funds held in crypto will be stored in cold wallets with multisig support.

3.4 EGLD token release schedule

The following chart represents the number and breakdown of all EGLD tokens that are intended to be released into circulation on a monthly basis.

EGLD token release schedule

3.5 Token overview and use cases

The use cases intended for EGLD include but are not limited to:

  • Network transactions: EGLD is paid by users for transaction fees for interacting with dApps, smart contracts, web3 payments and NFTs.
  • Staking: Users can run validator nodes and stake EGLD to secure the network. Alternatively, users can also their EGLD to non-custodial staking services by independent staking service providers.
  • Governance: At a later stage, ELGD token holders can participate in on-chain governance and vote on various improvement proposals.

4. Roadmap, updates, and business development

Q3 2021

  • Maiar Exchange: DEX AMM

Q4 2021

  • Maiar App new features
  • DeFi 2.0: Lending, Synthetics

Q2 2022

  • Onchain Governance
  • Staking Phase 4

4.3 Commercial partnership and business development progress

In order to drive adoption and build a robust ecosystem, Elrond has partnered with several companies and blockchain projects, including the following:

  • Utrust: Acquisition of UTrust, crypto payments processor that enables merchants to easily accept payments in any currency and automatically settle in fiat.
  • Twispay: Acquisition of Twispay, a card issuer and payments processor that holds an EU e-money license.
  • Samsung: Samsung is a South Korean multinational technology conglomerate. Elrond entered a collaboration with Samsung and released the Battle of Elrond mobile game with blockchain integration, exclusively Samsung’s flagship smartphones.
  • Global Digital Assets Corporation (GDAC): GDAC works with high growth economies and regions to enable innovation, boost economies and help to create new jobs. Elrond and GDAC are exploring the implementation of fast payments & clearance networks, as well as the definition and implementation of smart contract frameworks.
  • [BUSD:] BUSD will use the Elrond Standard Digital Token model, which makes token transfers as fast and inexpensive as the native protocol coin.
  • Industrial Internet Consortium: The Industrial Internet Consortium aims to transform business and society by accelerating the adoption of the Industrial Internet of Things (IIoT). Elrond and the Consortium members are working together to develop business solutions.
  • Netopia: Netopia is an electronic payment processor from Southeast Europe. Elrond and Netopia aim to jointly explore the potential of integrating EGLD into the Netopia payment platform.
  • TypingDNA: TypingDNA is a behavioral biometrics company, protecting online users based on how they type on their keyboards. Elrond and TypingDNA aim to explore the integration of TypingDNA biometrics solutions into the Elrond platform and future products in order to improve security.
  • SmartBill: SmartBill is a fintech company providing SaaS-based services to small, and medium-sized businesses for invoicing, accounting and inventory management. Elrond and SmartBill aim to explore the potential integration of the two platforms to provide to their users and clients blockchain-based features for transparency or traceability.
  • NASH (formerly known as NEX): NASH is a decentalized cryptocurrency exchange. Elrond and Nash aim to explore the potential integration of Elrond blockchain platform EGLD into the NASH payment platform, allowing their users and clients to trade and acquire EGLD tokens across different platforms.
  • Distributed Systems Research Laboratory (DSRL): DSRL is a laboratory focusing on distributed systems related research areas such as machine learning, big data analytics, and IOT. Elrond and DSRL aim to collaborate on Blockchain Research and educational initiatives.

5. Project team

Beniamin Mincu
CEO
Product & Business at NEM Core, co-founder & CEO at ICO Market Data and Metachain Capital, investor in 30+ startups.
Lucian Todea
COO
Founder & CEO Soft32, 10M users/month, Partner mobilPay, Angel investor.
Lucian Mincu
CIO
Engineer LIEBL SYSTEMS, co-founder & CTO at ICO Market Data and Metachain Capital, investor in 30+ startups.
Felix Crisan
Head of Research
CTO of Netopia, co-founder of BTKO, Romania's first Bitcoin exchange platform.
Radu Chis
Head of Technology
Engineer NTT DATA, Olympiad champion, CS Teaching Assistent Lucian Blaga Sibiu, PhD CS.
Adrian Dobrita
Head of Engineering
Engineer Intel, ST-Ericsson, Continental, AI Olympiad champion, MSc CS.
Andrei Adam
Head of Operations
Chief Marketing Officer Keep Calling, Managing Director Flying.com.
Valentin Lup
Senior Systems Administrator
Chief Marketing Officer Keep Calling, Managing Director Flying.com.
Sever Moldovean
Project Manager
Senior Manager OMV Petrom, Blockchain Consultant, IT Engineer, BSc CS.
Sebastian Marian
Core Developer
Engineer Continental, Multiple world AI RoboCup Olympiad champion, RoboCup Executive & Technical Committee, CS Olympiad champion, BS CS.
Iulian Pascalau
Core Developer
Engineer Compa, IoT specialization, BS CS.
Corcoveanu Cristian
Software Engineer
Full stack Engineer NTT DATA, BS CS.
Andrei Marinica
Software Engineer
Engineer Microsoft, BOC Group, Qiagen, Physics & Math Olympiad champion, MSc CS.
Robert Sasu
Core Developer
Engineer Continental, Google summer code school, E-mobility startup, Math and CS Olympiad champion, 20 patents autonomous cars, BS CS, MSc Graphics VR.
Camil Ioan Banicioiu
Research Engineer
Freelence engineer, PhD student AI & ML.
Radu Paun
Software Engineer
Engineer Keepcalling, Mobile dev, MSc CS.
Valentin Lup
Senior System Administrator
SysAdmin Soft32, Networking, Assistant teacher CS, BS CS.
Beniamin Drasovean
Junior Software Engineer
Engineer, BE CS.
Dan Voicu
Head of Communication
PR & Market Analysis ICO Market Data, Administrative Officer at Metal Ship Building, BA Political Science, MSc Business.
Daniel Serb
Head of Marketing and PR
Communication Specialist Continental, Recruitment Consultant Frank Recruitment Group, BA International Relations.
Constantin Tovisi
User Experience Designer
Marketing, Product management & BD Soft32, BEc.
Bogdan Rosianu
Software Engineer
Software Engineer, BE, CS.
Mihai Iuga
Software Engineer
Software Engineer, BE, CS.
Adrian Scanteie
Senior Software Engineer
Software Engineer, Keep Calling, Flying.com, BSc CS.

6. Elrond's activity and community overview

6.1 Development activity

6.2 Social and community data

General community growth strategy

By leveraging social mining through its community platform, the Elrond team employs an open bounty and reputation system to continuously engage its community and grow the Elrond ecosystem. Through this system, the Elrond team has focused on constant and inclusive interaction, and is regularly devising campaigns to consolidate the community.

The team is also constantly engaging with key opinion leaders from various countries, to grow outreach and raise awareness about Elrond.

  1. At a rather early stage of the project, Elrond open sourced their prototype, starting a conversation with developers about the latest innovations in the space.
  2. Releasing the testnet wallet gave everyone the opportunity to interact directly with the Elrond blockchain, and provide useful feedback.
  3. The Battle of Stakes program, slated to be released in Q3 2019, is designed to encourage testnet participants to collude and take over the network.
  4. Through hackathons, the Elrond team opens up the opportunity for enterprises and developers to fully test the network and complete challenges.
  5. At a later stage, the Elrond team intends to launch a few bug bounty programs to speed up development.

The team plans to continue their AMA series targeting specific regions of the world. Next AMAs will focus on Asia, Russia, and Central Europe, and will be conducted in multiple languages.

Growth strategy through events and conferences

Elrond has been present at a few significant conferences and technical events such as SFBW, Devcon, Blockchain Malta Summit, and have also held a number of local meetups to get first hand feedback from the community.

More events (to be announced) are lined up where the team will showcase their testnet demo and discuss other partnership opportunities.

Community and social channels

Telegram (English)
Telegram (German)
Telegram (Romanian)
Twitter (English)
Medium (English)
Facebook (English)
LinkedIn (English)
Reddit (English)
BitcoinTalk (English)

7. Appendix

7.1 Elrond testnet

7.2 Advisors

  • Raul Jordan (Ethereum core developer)
  • Alex Iskold (Partner at 2048 Ventures, former Managing Director at Techstars NYC)
  • Fabio C. Canesin (Co-Founder of City of Zion and Nash (former NEX))
  • Alex Tabarrok (Professor of Economics at George Mason University)
  • Grigore Rosu (Professor in the Department of Computer Science at UIUC)
  • Andrei Pitis (VP of Engineering and Head of Bucharest Office at Fitbit)
  • Ethan Fast (CS PhD from Stanford, Co-Founder of City of Zion and Nash (former NEX))

7.3 Reviews

7.4 Videos and interviews

7.5 Podcast, AMA, and conferences

7.6 Media mentions