It’s well established now that decentralized cryptocurrencies and smart contracts provide dependable, secure solutions for sending money and receiving electronic payments. They can be used for creating decentralized applications (dApps) and also ultimately as digital store of value.
However, when decentralized platforms are compared to their centralized counterparts, the present-day solutions show various problems that hinder widespread adoption.
Elrond - Addressing Challenges the Right Way
Elrond aims to address scalability issues associated with decentralized cryptocurrency platforms and improve efficiency overall.
To achieve this Elrond’s team of engineers have developed a state sharding scheme that offers practical scalability, whilst reducing energy and computational waste.
Furthermore, it integrates a secure Secure Proof-of-Stake (SPoS) consensus mechanism that improves security, while also lowers the threshold requirements to run a node. Their unique Adaptive state sharding concept also makes it possible for the network to fairly distribute network load amongst all participants. The best part about adaptive state sharding is that it allows the solution/ throughput to scale dynamically with the number of nodes in the network, without affecting security.
Secure Proof-of-Stake (SPoS)
Elrond integrates a Secure Proof-of-Stake consensus mechanism that expands on Algorand’s idea of a random selection mechanism.
The solution reduces latency by allowing each node in the shard to identify active members of the consensus group - right from the beginning of the round. This is due to the last block’s aggregated signature being used as the randomization factor r.
Furthermore, Elrond can select a random consensus group within milliseconds. There is no external communication necessary which could cause latency, as the randomization is integrated into a new block in each hashing computation!
Elrond’s extensive network is divided into smaller units known as shards. Shards are structured according to a binary tree model, where branches hold historic information about the previous reorganization of the network. Validator nodes are assigned to a shard depending on an algorithm that ensures the nodes are equally distributed across the tree leafs (shards).
Latency is caused by communication overhead when a node wants to get an update from the rest of the network.
Elrond's Adaptive State Sharding
Elrond’s unique Adaptive State Sharding is designed to deal with the complexities of combining network, transactions, and state sharding. It offers a dynamically adaptive sharding mechanism that allows shard computation and identification based on the number of active nodes.
Additionally, it facilitates progressive and nondeterministic reassignment of nodes in each shard, mitigating potential latency penalties through performing synchronization whenever the shard number is changed.
To reduce communication within the network each node only needs to synchronize the information corresponding to its shard, by employing data sharding and network sharding.
Additionally, it also aims to offer solutions to the following problems:-
- Dispatching and Real-time Tracking: Determining transactions is deterministic and easy to compute allowing Elrond to eliminate the need for many rounds of communication.
- Efficiency and Adaptability: All the shards are constantly balanced, which increases the efficiency and adaptability of the network.
In Proof of Work (PoW), each node is required to solve a mathematical puzzle. The first node that completes the puzzle can collect the reward. Proof of Work mechanisms prevents double-spending, DDoS and Sybil attacks at the cost of high energy consumption.
Elrond’s approach to consensus is developed by combining a pBFT like approach with random validators selection, eligibility through stake and rating, plus an optimal dimension for the consensus group known as Secure Proof of Stake (SPoS).
Elrond is designed to eliminate security problems like Sybil attack, Rogue-key attack, Nothing at Stake attack, and so on.
The system aims to address these problems by combining the following aspects:
- Randomness Sources
- Shard Reorganization
- Consensus Group Selection
- Node Rating
- Shard Redundancy
- Threat Model
- Attack Vector Prevention
Blockchain technology is omnipresent--as a buzzword. It has yet to play a major value-added role in an enterprise or mass-consumer solutions. DLTs are on the verge of reforming the digital age and visionaries are already building solutions of the future; yet, the underlying blockchain infrastructures of today do no justice to the capabilities of the developers in this space. Elrond Network is an elegant yet highly effective solution to the barriers that hinder adoption and usage of preceding smart contract blockchains.
The project's team is working effortlessly to deliver a 1000x improvement of on-chain transaction without sacrificing any of the features that make blockchain technology so valuable--security and decentralization.
Learn More on https://elrond.com/
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