How does Elrond work?

Elrond is a blockchain-based platform that utilizes a novel architecture to provide scalability, security, and speed.

It is designed to enable high throughput and low latency transactions while also providing the necessary security and decentralization. At its core, Elrond is powered by a new consensus mechanism called Adaptive State Sharding. This mechanism allows the network to be divided into multiple shards, each of which can process transactions in parallel.

This means that instead of having one single chain processing all transactions, Elrond can process multiple transactions at the same time. This increases the overall throughput of the network significantly. In addition to sharding, Elrond also utilizes a new consensus algorithm called Secure Proof of Stake (SPoS).

SPoS is an improved version of Proof of Stake (PoS) that provides enhanced security and decentralization. In SPoS, validators are randomly selected from a pool of stakers who have locked up their tokens as collateral in order to validate blocks on the network. This ensures that no single validator has too much control over the network and prevents malicious actors from taking over the network.

Finally, Elrond also utilizes a new type of virtual machine called eWASM (Ethereum WebAssembly). eWASM is designed to be more efficient than traditional virtual machines like Ethereum’s EVM (Ethereum Virtual Machine). This allows developers to create more complex applications on top of Elrond’s blockchain without sacrificing performance or scalability.

Overall, Elrond’s architecture combines sharding, SPoS consensus, and eWASM virtual machine technology in order to provide an efficient and secure platform for decentralized applications (dApps). By utilizing these technologies together, Elrond is able to provide users with fast transaction speeds while still maintaining high levels of security and decentralization.