An overview of the Elrond Network Ecosystem

Bianca D. Bianca D.
14 Apr 2022
4 min read
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An overview of the Elrond Network Ecosystem 

A highly scalable, fast and secure blockchain platform for distributed apps, enterprise use cases and the new internet economy. - Elrond Network

In June 2019, the project conducted a private investment round raising $1.9 million from several angel investors. That same month, Elrond Network held an Initial Exchange Offering (IEO) that raised $3.25 million in exchange for 25% of its total token supply. At the time, Elrond Network distributed its cryptocurrency as ERD coin, but, after the project launched its main net in July 2020, Elrond Network launched its own native cryptocurrency, the eGLD coin replacing the old ERD token.

Elrond is not just a blockchain protocol facilitating high transaction throughput, but it is a complete ecosystem. It provides a scalable & secure platform for building distributed applications called DApps.

Two of Elrond’s unique features that make the above possible are Sharding and Secured Proof of Stake.

How does it work?

Sharding works by splitting the network into pieces, or shards, for nodes to only process a fraction of the network’s transactions. Elrond’s transaction processing mechanism is called "Adaptive State Sharding", where nodes are split into subsets to verify transactions. Once the transactions are processed, the shards broadcast them to the meta chain (Elrond’s central blockchain) where they will be settled.

SPoS (Secured Proof of Stake) is a Proof of Stake governance mechanism that keeps the distributed network of computers running its blockchain in sync. SPoS is used by computers running the Elrond software to secure the network, validate transactions, and distribute newly minted eGLD coins.

However, since Elrond’s network consists of shards rather than a single chain, its SPoS consensus mechanism is used to select validating nodes to produce blocks within a shard rather than the entire network. To achieve a final settlement, validators must check the work of block producers and sync with other shards within the network. Once a batch of transactions is successfully appended to the Elrond blockchain, these contributors are rewarded with eGLD tokens.

A new feature unveiled by Elrond on the 14th of April 2021 is the Maiar Launchpad.

The strategic launchpad for projects with a high chance of making a lasting impact on the world using Elrond Network, the internet-scale blockchain technology.
Projects debuting on the Maiar Launchpad will tap into decentralized funding from the platform and will be introduced to our global and passionate community, partners, and investors, along with the broader Elrond ecosystem.

As part of Elrond’s ecosystem expansion, on the 15th of March 2022, it's been announced a new product, Metabonding, an ultimate community bootstrapping product for Web3.0 startups.

Projects building on Elrond will be able to establish a long-term commitment with the most hardcore community members, by distributing ~10% of their token supply to eGLD stakers and LKMEX stakers, over the course of 2 years.

"Fully Regulated Fund, Skynet EGLD Capital, raises $40M+ USD To Invest In The Elrond Ecosystem" - the latest news released by the Elrond Team on the 14th of April 2022.

The Skynet EGLD Capital announced today (14th of April 2022) that it has raised more than USD 40 Million for supporting startups who will build on the Elrond blockchain. First investments have already started with Itheum - "The world's 1st decentralized, cross-chain data brokerage platform"

As a fully regulated fund with vast amounts of liquid capital and the capabilities to attract even more from the institutions racing to be part of the Web3 innovation wave, Skynet EGLD Capital will provide the shortest path to sustainable development and new markets for the most ambitious innovators building with Elrond blockchain technology.

Elrond's CEO Beniamin Mincu

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Bianca D.
Bianca D.
About the Author

Financial Crime Investigator & AML Specialist. Crypto Educator NFT Marketing & Crypto Promoter DeFi & Web 3.0 Content Writer

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