Adaptive state sharding
The optimal approach to blockchain sharding needs to take into consideration advantages from all three sharding types: State, Transactions & Network. Elrond’s approach to increased throughput, called “Adaptive State Sharding”, combines all three sharding types into a solution that improves communication inside the shards and dramatically increases performance through parallel processing.
Secure proof of stake
Elrond has proposed a novel approach to consensus called “Secure Proof of Stake” which eliminates PoW computational waste, and combines eligibility through stake and rating with random validator selection, and an optimal dimension for the consensus group. The BFT-like consensus protocol maintains a high security level through random sampling of the consensus group, and random reshuffling of nodes into other shards. The consensus uses an unbiasable randomness source generated by the block proposer via signing the previous random source.
The Elrond Virtual Machine is a dedicated smart contract execution engine built on WASM. It expands the family of languages available to smart contract developers to include Rust, C/C++, C#, Typescript. This means you can write smart contracts in whichever language you’re familiar with, compile it of WASM and easily debug its WAT human readable format.
The ERD Token
The ERD token is a unit of value that is native to the Elrond network. It represents a medium of exchange between users & developers who pay to use the network and validators who take the fees as payment for the services they provide.
The Shards are smaller partitions of the Elrond network and are used for scaling: each shard is responsible for a portion of the state (accounts, smart contracts, blockchain) and transaction processing, so that every shard can process only a fraction of the transactions in parallel with other shards.
The Metachain is the blockchain that runs in a special shard, where the main responsibilities are not processing of transactions, but notarizing and finalizing the processed shard block headers, facilitating communication between shards, storing and maintaining a registry of validators, triggering new epochs, processing fisherman challenges, rewarding and slashing.
The Node is a computer, smartphone or server, running the Elrond client and relaying messages received from its peers. Nodes can fulfill roles of Validators, Observers or Fisherman providing different support levels to the network and earning proportional rewards.
Validators are nodes on the Elrond network that process transactions and secure the network by participating in the consensus mechanism, while earning rewards from the protocol and transaction fees. In order to become part of the Elrond network, a validator needs to put up collateral in the form of ERD tokens, which are staked to align the incentives between validators and network goals. Validators stand to lose, their stake if they collude to disrupt the network.
Observers are passive members of the network that can act as a read & relay interface. They can be either Full, keeping the entire history of the blockchain, or Light, keeping only 2 epochs of blockchain history. Observers are not required to stake ERD tokens to join the network and are not rewarded for their participation.
A node which verifies the validity of blocks after they have been proposed. They challenge invalid blocks resulted from adversity of malicious actors and are rewarded for their service. The Fisherman role can be fulfilled by validators which are not part of the current consensus round or by observers.
Short comparative analysis giving an overview about the advantages of Elrond over other blockchains architectures.
Compared to Ethereum
Compared to Ethereum, Elrond eliminates both energy and computational waste from PoW algorithms, by implementing a Secure proof of stake consensus, while enabling transaction parallelism via Adaptive state sharding.Read more
Compared to Algorand
Compared to Algorand which has a single blockchain and thus clear scaling limitations, Elrond increases throughput via Adaptive state sharding. Elrond also improves on Algorand’s idea of random selection by drastically reducing the selection time of the consensus group from over 12 seconds to less than one second.Read more
Elrond network is on track to deliver the most scalable, fast and secure blockchain platform for real world applications, bringing a 1000x improvement compared to blockchains such Bitcoin or Ethereum.
- Elrond technical paper
- Prototype Launch
- Code open source
- Whitepaper update
- Elrond testnet v0.5
- Elrond testnet v0.5
- Private testnet launch
- Consensus & cryptography
- Elrond explorer & wallet
- Public testnet launch
- IELE VM integration
- CryptoBubbles dApp launch
- Elrond New Website & Vision
- Wasm VM, Dev IDE, Debugger, Rust SDK
- Battle of Nodes & in-depth security audits
- Elrond Bootstrapping Phase 1:
- Pre-staking in 10 waves
- Staking target 50% of circulating supply
- Reach PoS economic security threshold
- Economic model proposal
- App in Samsung dApp store
- Native Elrond wallet
- Elrond Bootstrapping Phase 2:
- Genesis block
- Select validator staking program
- Progressive feature activation
- Governance model proposal
- Functional payment gateway
- Elrond Bootstrapping Phase 3:
- Complete set of features
- Elrond nodes phase-out
- Global validator staking
- Elrond dApp store
- Elrond digital identity
- Elrond name service
- DeFi initiatives
- Privacy research