As developers attempt to speed up networks, reduce traffic congestion, and increase the number of transactions that can be handled in a second, scalability has become one of the most crucial elements in blockchain networks. Some major networks, like Bitcoin and Ethereum, also have scaling issues.
Elrond (EGLD) capitalized on the potential of effective blockchain scaling to enable the development of decentralized apps for various use cases and the creation of a new internet economy based on new digital assets.
What Is Elrond (EGLD)?
Elrond is a blockchain-based platform that enables users to create and develop decentralized applications and cryptocurrencies in order to establish a new internet economy.
The project intends to overcome the burning problem of traffic congestion on blockchain networks by providing scalability solutions. Elrond provides developers, corporations, and users with quick transactions, a scalable environment, and a user-friendly experience with minimal transaction costs.
According to some reports, the network can do up to 15,000 transactions per second, making it one of the quickest blockchain networks on the market. The native token, eGold, with the ticker EGLD, is a multi-purpose cryptocurrency. EGLD is utilized on the network for staking, voting, and transacting. It is the key asset in the incentivization system that rewards network participants. Elrond also has a six-second latency, can scale via sharding, and has low transaction costs of $0.001.
How Does Elrond (EGLD) Work?
Elrond is a complex program for creating DApps and developing digital assets that are supported by smart contracts. It employs Adaptive State Sharding to scale the environment for developers and users. This method separates the network’s infrastructure to handle the growing number of apps and transactions on the ledger.
Elrond also employs the Secure Proof-of-Stake (SPoS) consensus mechanism, a variant of the standard Proof-of-Stake (PoS) protocol, to ensure that all sharded network partitions are joined. Elrond’s Integrated Development Environment allows developers to create decentralized apps (DApps) that imitate products and services.
Adaptive State Sharding
There are three forms of sharding:
State Sharding
The state or history of the whole network is separated into several shards/portions of the network. Each shard has its history/ledger, and nodes only need to keep track of the shard’s state of the shard they are in. thus, lowering the amount of hidden storage space needed.
Transaction Sharding
Transactions are mapped to shards for processing depending on parameters such as the sender’s address. Each shard executes transactions in parallel with other shards. Each node in the network maintains a record of the network’s current status.
Network Sharding
Organizes nodes into shards and can improve communication by sending messages to a subset of nodes rather than the whole network.
Secure Proof-of-Stake (SPoS)
Secure Proof-of-Stake (SPoS) (Source: ResearchGate)
SPoS is Elrond’s method of achieving consensus. It reduces Proof-of-Work (PoW) computational waste by merging eligibility and stake. In this case, a forger, like a miner, is more likely to build a block depending on the funds they possess and the length of time they’ve held it compared to other forgers.
Another aspect is rating, which serves as the foundation for Proof-of-Stake with random validator selection and an ideal dimension for the consensus group.
Elrond’s BFT-like consensus method randomly samples the consensus group and shuffles nodes into various shards to avoid collisions. It employs an impartial unexpected randomness source generated by the block proposer by signing the preceding random source.
Elrond (EGLD) Price Prediction
After a thorough analysis and research Currency Prediction went through, we expect Elrond (EGLD) to have a bright future.
Two years ago, in 2020, Elrond reached its all-time low of $6.54. One year after reaching its minimum, Elrond had a bull run and, as such, reached its all-time high price of $542.58. However, this price was not stable as it quickly declined at a significant rate. Currently, Elrond is trading at about $158.91. Even though Elrond’s price is not as high as it was a year ago, we predict that this price could exceed expectations and reach a new all-time high in the coming years.
This year started bearish for Elrond. We expect that by the end of 2022, the price of EGLD could rise and reach a maximum of approximately $249.62. If the market continues to be in Elrond’s favor, its price might also continue to increase. Thus, for 2023 and 2024, we predict Elrond might reach $506.78, which is near its previous all-time high.
As of 2025, this year might start and end on a good note for Elrond. We suggest that the coin might reach a new all-time high by the end of the year of around $853.23. Currency Prediction expects that Elrond might continue to rise even in 2026. This could be the year that Elrond reaches and even exceeds $1000.
Since the coin has a lot of community support and its projects, it has much potential to grow and exceed our expectations.
Should I Buy Elrond (EGLD)?
Elrond is a cryptocurrency worth investing in for a variety of reasons, including its solid use case, attractive design, future potential, and community partnerships.
Elrond is a good crypto asset with a promising future thanks to the Maiar app and the Maiar exchange. Despite the fact that the currency might require further development, it is currently on pace to become a major competitor for blockchain development due to the numerous problems that its technology addresses.
So, should you buy Elrond EGLD? Elrond is great for holding and staking right now. It is also worth mentioning that future innovations are expected to build on the blockchain and boost EGLD’s utility.
Conclusion: Is Elrond A Good Investment?
Elrond did exceptionally well in 2021. It reached an all-time high of $542.58 in November. Elrond’s fundamentals imply that it has the potential to be a large crypto project due to its high transaction throughput and collaboration with other protocols.
However, whether or not EGLD is a good investment for you is influenced by your own circumstances. Cryptocurrencies are high-risk, high-volatility investments, and EGLD price predictions should not be used in place of your own research. Thus, before investing, evaluate how much risk you are willing to take, and never invest money that you cannot afford to lose.
Takeaways
- Scalability has become one of the most crucial elements in the world of the blockchain network.
- Elrond capitalized on the potential of effective blockchain scaling to enable the development of decentralized apps for various use cases.
- Elrond employs Adaptive State Sharding and Secure Proof-of-Stake (SPoS) as methods of sharding.
- Adaptive State Sharding scales the environment for developers and users.
- Secure Proof-of-Stake (SPoS) ensures that all sharded network partitions are joined.
- Because of its project and community support, Elrond has a lot of potential to grow in the future.
- By the end of 2026, Elrond is expected to reach and exceed $1000.
- Elrond is a great coin for holding and staking because the bright future is worth investing in now.
