What is Elrond?
The Elrond Blockchain wants to use an innovative approach to significantly improve the scaling of transactions on decentralized platforms. Bitcoin currently manages up to 7 transactions per second. In practice, this problem is circumvented by second-layer applications. Elrond would like to achieve a number of transactions of up to 15,000 per second through a special technology without a second-layer application.
Staking allows users to earn tokens. These in turn can be used for voting on the platform. The transaction fees should amount to €0.001 and be able to keep them constant. A big advantage for developers is that several programming languages can be used. As a result, a large number of programmers are addressed in advance who do not have to first learn a new language. Elrond's official website is at Elrond.com .
The staking mechanism behind Elrond is particularly important because it enables the high number of transactions. Elrond was originally launched in 2017 by Lucian Todea, Beniamin, and Lucian Mincu. In a private investor round, 2 million US dollars in liquidity was collected in advance. A public ICO was then launched in July 2019, offering over 25% of all tokens for sale and realizing a total of $3.2 million in revenue.
In addition to the official Elrond wallet , the Maiar wallet is also officially recommended. At the time of writing, there are 22,268,714 EGLD tokens in circulation. Over 1.6 million different addresses hold these tokens. Compared to other blockchain platforms of a similar size, this is a large number of active addresses, but each user can always hold several addresses. Therefore, this number is not set in stone.
Through smart contracts, the Elrond blockchain can provide various decentralized applications - similar to Ethereum. In addition to creating a new token, this also includes the possibility of digital identities. In addition, a large number of dApps are possible.
The scaling is carried out using sharding technology. The focus of the Bitcoin proof-of-work, in which only one miner finds the next block and therefore only one miner handles the new transactions, is completely reversed. Because in sharding, transaction processing runs many different groups of participants.
These groups are called shards. The demands on the network are therefore outsourced to shards, which only carry out a fraction of the transactions that are currently being carried out. So the theory is that when the performance of the network increases significantly, new groups of shards are simply added.
We also find a similar technology in the cryptocurrency Dash. Although this uses the proof-of-work mechanism to confirm transactions, several groups of new miners are added to the network when requirements increase sharply in order to ensure a higher number of transactions.
A stress test encouraged hackers to heavily flood Elrond's network with a $40,000 reward. It was noticed that the sharding structure fulfills its purpose and enables high scaling. Peaks of up to 12,500 transactions per second were measured.
If we take a close look at the technical data of the blockchain, it is noticeable that Elrond has a good basis for solving the staking problem through sharding technology. However, staking also poses an often overlooked problem. Because of the lack of incentive to decentralize staking, fewer and fewer network participants seem to be holding back a larger part of the payouts in the long run.
Such centralization has already been noticed in staking projects in the past. Because through voting, such monopoly structures can guide the rules of the network in the direction of maximizing their profits in the long run. Many proof-of-work projects often have a few miners, who account for a large percentage of the computing power, but these would never rise above 50%, otherwise a 51% attack would be possible and their profitability would be at risk .
Therefore, in view of the positive Elrond forecast, the centralization problem of staking networks should not be underestimated. We hope that Elrond can work around this problem in the future and therefore become a fair network for all participants without developing monopoly structures.
In the following, we analyze the assessments of various experts in the scene. How does the Elrond Prognosis 2022 develop in the future? Always keep in mind that this is never investment advice, but only represents the personal opinions of the individual analysts. These are intended to give a feeling of assessing the market, but can never be the basis for a purchase.
The experts at Priceprediction.net assume an average price of 215 US dollars and a high of around 250 US dollars for 2022. By 2024, the course should more than double to a value of around 477 US dollars.
The analysts from Tradingbeasts.com see a significantly weaker development. The course should not exceed a high of 162 US dollars this year. The price will only rise sharply in 2024 and should reach an average value of 245 US dollars by the end of the year.
The specialists from Digitalcoinprice.com are in the middle of the other two experts. There, the price this year should be an average of 178 US dollars. By 2024, this should then rise to 231 US dollars.
EGLD has suffered significantly over the past few days. After the entire crypto market, especially the altcoins, had to make significant losses, EGLD fared no differently and also went down significantly.
We are currently trading at around USD 126 and are therefore within our green range or support box. This has often held as support and must continue to hold.
The next significant support is around $116. this is also our last low point. So we shouldn't break through this sustainably, otherwise we would be in a downtrend again.
On the other hand, we hardly see any movement on the daily chart. Overall, we are still in a sideways phase, which has existed since the beginning of the year.
As long as we don't go either way up or down this range, there's no reason to be bullish or bearish. The RSI is now in an oversold territory.
This is a first sign, especially on the daily chart, that we can break through to the upside again, at least in the short term. However, this still depends on the Bitcoin price.
Conclusion on the Elrond prognosis 2022
Due to the innovative framework through sharding, which enables high scaling, there is a lot of speculation behind the project. Therefore, a strong price increase is quite realistic in the future. Nevertheless, there are an enormous number of different competitors on the market. More altcoins are being added every day that want to enable higher scaling with similar techniques. A high risk is required, especially with regard to the centralization of staking products.
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