With the passage of time and advancement in telecommunication technology and increased production of semiconductors that increases the industry of mobiles, the obvious consequence would be in the increase of the cryptocurrency market. But before going all-in into crypto, there is still a matter that has to be dealt with. And that is the problem of blockchain technology. The problem of scalability.
New and improved methods are being employed by new platers in the market to protect itself from this problem that will surely result in a decreased popularity of the major cryptocurrencies and in turn effecting the whole crypto market. Elrond, which uses the utility token EGLD, is trying to pave its own way by introducing a novel idea for the solution of the scalability problem. Elrond (EGLD) is a cryptocurrency designed as a financial tool for P2P transactions in a digital world.
How is Elrond trying to solve the scalability problem? It is quite simple actually. The technique employed by Elrond is that of sharding. As it is suggested already by the name, sharding is the splitting of the blockchain’s network into smaller partitions, known as “shards”. These shards are separate from each other and each shard is unique because each possesses its own hash. This kind of approach can be used to decrease the scalability problem presented by bitcoin. There is a problem with sharding though. That is the problem of security because if anyone gets access to that unique hash, then the privacy and in turn, the security of the whole chain would be compromised.
Current Price Movement – Elrond (EGLD)
Egld, also known as “The Internet Scale Blockchain”, is currently in a fluctuating state, with, at the time of writing this article, a value of $308.02, with the day’s lowest value at $281.45. There has been a positive trajectory shown by the coin but all indicators show a possibility of being bullish. To give a little bit perspective, over the past month, the lowest value of EGLD has been $220.58 on 10/06/2021 with a trading volume below $160 million and the highest value of the coin being and the highest being $323 which it hit today.
Although the volume of trading for the coin is low, there are positive indications for the growth of the coin as Binance has announced a strategic partnership with Elrond. The partnership is going to be beneficial for Elrond as the traders will be able to earn 55.49% of the annual per yield (APY) and Binance shall improve the network’s security.