As cryptocurrency keeps on growing with time, a problem is presented to the blockchain technology. This is the problem of scalability. Innovative methods are being employed by a number of new players in the market to safeguard itself from this problem that will surely result in less popularity of the major and relatively cryptocurrencies. One of the technologies that is trying to break out of this mold set by Bitcoin and Ethereum is Elrond with its utility coin EGLD.
How it is doing that? We will answer that shortly. But the first thing that needs to be cleared up is the problem of scalability. Scalability has been defined as the property of a system to handle a growing amount of work by adding resources to the system. For our purpose, we will constrict it to only the problem faced by Bitcoin which is the limited capability of the Bitcoin network to handle large amounts of transaction data on its platform in a short span of time. Bitcoin’s blocks contain the transactions on the bitcoin network. The on-chain transaction processing capacity of the bitcoin network is limited by the average block creation time of 10 minutes and the original block size limit of 1 megabyte. These jointly constrain the network’s throughput. This entails that a limited number of transactions are possible at a particular duration.
How Elrond Works?
Now to what Elrond is trying to do. It is quite simple really. The technique used by Elrond, and many others, is sharding. As the name suggests, sharding is the splitting of the blockchain’s network into smaller partitions, known as “shards”. These shards are completely distinct from one another, giving each an independent identity. This system can be used to reduce the scalability issue presented by bitcoin but there are concerns for security as the shard created does not have the same security of block node.
But this part of the EGLD is being overlooked. Most importantly, it has functionality that is dearly missing from the crypto giants (although Ethereum is planning an upgrade to its system to resolve this issue). As far as the value of EGLD is concerned, it has had a 10.29% decrease today with the highest value at $300.89 and currently at $266.67. But in the last week, the coin has had a good outing with a constant increase from $153.59 at 09/08/21. It has been predicted to explode in the near foreseeable future with Digital Coin Price estimating a value of $531.26 USD in 2023 with a generally increasing trend. Wallet Investor, on the other hand, expects an increase in the price but takes a conservative view of things with a value of $415.418 USD in 2022 and an expected whooping value with a trend of a general increase of $1009.470 USD by 2026. A currency certainly to rival the giants!