There are many different blockchains to build smart contracts and applications on top of. Elrond is attracting a ton of attention in this regard. It is an interesting technology stack, and one that will be expanded upon further.
Scalability Advantages
Every blockchain can be made or broken depending on how scalable it really is. As can be seen with both Bitcoin and Ethereum, neither of these chains are scalable by default. They rely on layer-two solutions to address these technical limitations. A solid approach, but competing projects – including Elrond – focus on this core aspect at the protocol level from day one.
Through its Adaptive State Sharding, Elrond’s throughput is at least 1,000x higher compared to traditional blockchains used in the cryptocurrency space. Comparing this to Bitcoin, the throughput is between 3,300 and 7,000 transactions per second. A significant improvement, and one that has attracted a lot of attention already.
Secure Proof of Stake
Consensus algorithms in the cryptocurrency space are often subject to a lot of debate. Whether proof-of-work or proof-of-stake is the best, remains a matter of personal sentiment.
Elrond uses Secure Proof of Stake, which is not only fast, but also secure. Additionally, it provides long-term distributed fairness. That is another aspect some traditional blockchains tend to overlook.
Developer-Friendly
Getting acquainted with a new blockchain infrastructure is anything but straightforward. Even for developers, this can often be a bit more complex than originally anticipated.
However, the Elrond team has come up with a set of tools that make it feel as if one is working on web applications. This will, in turn, allow for more applications to be built on top of this blockchain.
Growing DeFi Presence
What is rather remarkable is how many different blockchains now support DeFi solutions, or will support them in the future. In Elrond’s case, there will be quite a few DeFi projects and solutions to check out over the coming years.
A fair few of them are being developed by Orion Protocol. That team aims to leverage Elrond’s high throughput and security to make all of this happen.
An Interoperable Bridge
Speaking of Orion Protocol, its developers have made another announcement. The team is building a Token Bridge ecosystem – somewhat similar to what Syscoin has been doing – to bridge the gap between Elrond and other blockchains.
Allowing for inter-chain trading is of the utmost importance. Unlocking new trading pairs will bring some much-needed competition to the world of cryptocurrency trading.
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