Elrond is a blockchain focused on building decentralized applications and enabling interoperability. The platform is affordable and scalable, allowing developers not to worry about cost or performance issues.
What is Elrond?
Elrond is based on Secure Proof-of-Stake or SPoS consensus mechanism. The high throughput, low latency network handles 15 000 transactions per second while maintaining low fees and privacy for its users.
Elrond scales via sharding when the network is divided into smaller interconnected parts or shards working simultaneously. This technology allows it to scale beyond 100 000 TPS as per documentation.
Since 2017, the project has received support from well-known investors: GapMinder Venture Partners, Electric Capital, Brilliance Ventures, Binance, etc.
Everstake is one of Elrond's partners and validators.
How Secure Proof-of-Stake works
In SPoS, validators are selected randomly and unbiasedly.
Elrond nodes form a consensus group rating to determine the chances of becoming a validator for the next block. Validators are shuffled randomly and can be reassigned to another shard. This technology provides a high level of network security.
Elrond has four shards (three transaction shards and one metachain shard). Each shard has 800 validators. Half of them are eligible, and another half are waiting. The ones that are waiting are displayed with a clock in the explorer. The eligible ones work and receive rewards at the end of an epoch.
Currently, there are almost 3200 active validators supporting the network.
Validators receive EGLD tokens for adding new blocks while users delegate tokens to them.
What are the key features of Elrond?
Elrond supports cross-shard transactions that are a part of adaptive sharding. The feature allows you to automatically split your data into multiple shards and move them to different nodes. For example, if one node goes down and you have much traffic on that node, you can move all its shards to other nodes and keep the service up.
Elrond can scale horizontally and provide a consistent view of the entire blockchain state across multiple shards. They are created simultaneously, and nodes can join or leave any shard at different epochs and still have the full view of all shards.
How to stake EGLD
There are two options for staking EGLD: delegating to a validator or legacy delegating.
With the first option, you need to choose a validator and delegate your tokens. All validators charge a fee for their services.
Everstake is one of Elrond validators. Thus, you can delegate to us. Here is a step-by-step guide on EGLD staking.
With legacy delegating, you need to stake at least 10 EGLD. Legacy Delegation Pool does not support restaking, but offers a slightly higher APR of 12-16%. But to receive rewards, users have to move from a waitlist to Active Delegation list. It happens only if others withdraw.
With staking phase 4, legacy delegating to Elrond Foundation nodes will be abolished. It will open the door for more third-party service providers.
What is Top-Up?
In Elrond, there is a Base stake of 2500 EGLD per node. Top-Up stake is above 2500 EGLD per node. The more Top-Up stakes exist, the more secure the network is. But the more Top-Up stakes exist, the more APR is declining because the same amount of tokens are distributed among a greater number of users.
Conclusion
The Elrond network addresses scalability and interoperability issues with adaptive sharding and an improved consensus algorithm. Its unique architecture makes it a perfect match for Web3 applications.
Everstake is one of Elrond's partners and validators. We contribute to network security and provide users with a reliable staking service.
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