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Elrond (ERD)

A scalable value transfer protocol for the digital economy

KEY METRICS [as of 20 June 2019]
Ticker ERD
Issuing Price $0.00065 USD
Initial Circ. Supply 7,498,333,333 ERD (37.5%)
Total Supply 20,000,000,000 ERD
Project Website https://elrond.com/

PROJECT OVERVIEW

  • Elrond is a high-throughput public blockchain aimed at providing security, efficiency, scalability, and interoperability via Adaptive State Sharding and a Secure Proof of Stake consensus mechanism.
  • Elrond is built by a team of entrepreneurs, engineers and researchers with technical experience at Google, Microsoft, Intel, NTT, a PhD in Computer Science ("CS"), and blockchain backgrounds, including being previously part of the NEM core team.
  • Elrond is currently in the testnet phase and aims to be a platform for easy deployment of programmable money and dApps, thus becoming the backbone of an open, permissionless, borderless, globally accessible internet economy.

KEY FEATURES & HIGHLIGHTS

Elrond is a complete redesign of blockchain architecture with the aim to achieve global scalability and near instant transaction speed. Elrond focuses on combining these key innovations:

  • State sharding (transaction, data & network sharding); adaptivity through shard merges and shard splits
  • Consensus in two communication rounds with modified Boneh–Lynn–Shacham ("BLS") multi-signatures
  • High resiliency to malicious attacks due to intra and cross shard node reshuffling
  • Secure randomness beacon with BLS signing
  • Smart contracts on a state sharded architecture with balanced load on shards
  • Fast finality for cross shard transactions (seconds)

WHAT IS ELROND?

Elrond (or "the Project") is a high-throughput public blockchain focused on providing security, efficiency, scalability, and interoperability by employing two key elements: Adaptive State Sharding and a new Secure Proof of Stake ("SPoS") consensus mechanism.

Elrond's testnet is already live and can process upwards of 10K TPS, with 5-second latency and minimal cost (based on 5 shards). The Project aims to be a platform for easy deployment of programmable money and dApps, thus becoming the backbone of an open, permissionless, borderless, globally accessible internet economy.

VALUE PROPOSITION

Elrond's goal is to be a high throughput, fast transaction speed and low transaction cost platform, allowing efficient and competitive dApp user experiences in real world use cases.

Elrond believes that its high scalability, fast transaction speed, and low transaction cost makes it well-suited for machine-to-machine transactions and the IoT economy.

TOKEN SALE & ECONOMICS

KEY METRICS
Token NameERD
Token TypeBEP2 in testnet phase
Total Token Supply20,000,000,000 ERD
Initial Circulating Supply7,498,333,333 ERD (37.5% of total supply)
Launchpad Allocation5,000,000,000 ERD (25% of total supply)
Launchpad Sale Token Price1 ERD = 0.00065 USD (price in BNB TBD)
Launchpad Raise3,250,000 USD
Private Sale Allocation3,800,000,000 ERD (19% of total supply)
Private Sale Token Price1 ERD = 0.00050 USD
Private Sale Date (start to end)April 2019 - May 2019
Amount Raised Private Sale1,900,000 USD

Token Supply Distribution:

  • Launchpad sale tokens comprise 25% of total supply.
  • Private sale tokens comprise 19% of total supply.
  • Team tokens comprise 19% of total supply.
  • Reserve tokens comprise 17% of total supply.
  • Advisors received 2.5% of total supply.
  • Ecosystem Rewards tokens comprise 7% of total supply.
  • Marketing tokens comprise 8.5% of total supply.
  • Community tokens comprise 2% of total supply.

Private Sale Overview

  • Conducted in April and May 2019 for 3,800,000,000 ERD at a rate of 1 ERD = 0.00050 USD and raised a total of 1,900,000 USD, selling 19% of total token supply.

Binance Launchpad Sale Overview

  • Sale will be conducted in June 2019 for a total raise of 3,250,000 USD worth of BNB at 0.00065 USD per ERD token, selling 25% of total token supply. ERD/BNB exchange rate will be determined prior to the date of sale.

Elrond Token Ecosystem

The Elrond token (ERD)'s uses include, but are not limited to: payment for transaction fees and payment for the cost of deploying dApps on the network and rewards for various contributions to the network.

During its first few years, the Project's main focus will be on establishing Elrond as a global public utility within the internet ecosystem, offering a scalable, efficient, and interoperable blockchain architecture, only accessible through ERD tokens. All activity within the network (i.e. making transactions, running smart contracts, providing services like staking, or running a validator node) will be fueled by the ERD token. Both startups and large-scale enterprises will be able to build decentralized applications on top of Elrond's network and integrate Elrond as part of their infrastructure solution for products and services.

Token Governance & Use of Funds

As of the June 2019, Elrond has used approximately 5% of TGE funds according to the breakdown below:

  • R&D - 62%
  • Operational - 17%
  • Marketing/PR - 11.6%
  • Business Development - 5.5%
  • Legal & Audit - 3.9%

Elrond plans to hold sufficient fiat reserves to fund the operational costs for at least 18 months. The rest of any funds held in crypto will be stored in cold wallets with multisig support.

ERD Token Release Schedule

The following chart represents the number and breakdown of all ERD tokens that are intended to be released into circulation on a monthly basis.

Token Overview & Use Cases

The use cases intended for ERD include but are not limited to: (1) payment for transaction fees, (2) payment for the cost of deploying dApps and (3) rewards for staking and various contributions to the network.

  • The ERD token is used to stake and participate in the Secure Proof of Stake consensus of the network.
  • In addition, the ERD token is used to pay for transactions, storage fees, and as gas. The token also serves as rewards to the SPoS validators.
  • The ERD token will also be used for voting and on-chain governance at a later stage, once on-chain governance is enabled.
  • In Elrond, rewards are paid through an emission of ERD defined in the protocol. The majority of all newly issued ERD will go to validators, while a very small part will go to a reserve pool. The reserve pool will be used to fund development and ecosystem expansion, increasing the security and value of the network in the long term.
  • Each time a transaction happens in Elrond, a percentage of transaction fees will go to validators, another percentage will be burned, while the small remaining part will either be: a) donated to the Elrond Community Fund or b) also burned. The percentages will be released publicly in upcoming releases from the team.

ROADMAP & UPDATES

Planned DateMilestoneActual DateTimingComments
2018: Q2Technical paper (release 1): First formalization of Adaptive state sharding and Secure Proof of Stake2018: Q2On TimeFormal design of Elrond architecture presented
2018: Q3Prototype Launch2018: Q3On TimeAchieved 1,000+TPS with 250 nodes on 10 shards
Medium
2018: Q4Open source & whitepaper update2018: Q4On TimeGithub
Technical Paper
2019: Q1Elrond testnet v0.5 initial results2019: Q1On timeValidating new implementation in Golang with performance increase up to 3,750+ TPS on a single shard
Demo
2019: Q2Testnet launch 2019 Q2On TimeTestnet max TPS exceeded 12,000 with 5 shards
Youtube
2019: Q2Elrond block explorer & wallet launch2019: Q2On TimeExplorer
Wallet

Updated Roadmap

Q2 2019
  • Private testnet launch
  • Implement cross-shard communication
  • Initiate consensus node reshuffling
  • Implement BLS single sig for randomness generation
  • Add BLS multisig for consensus signature aggregation
  • Launch Elrond block explorer & wallet


Q3 2019
  • Public testnet launch
  • Launch VM Integration
  • Finalize Elrond Game dApp
  • Finalize Elrond token economics
  • Develop shard adaptivity
  • Develop shard pruning
  • Complete security audit
  • Launch global community PR & marketing
  • Ecosystem expansion: sign 5 MoUs for business partnerships, 1 hackathon
Q4 2019
  • Elrond mainnet launch
  • Initiate token swap and staking
  • Implement functional payment gateway
  • Launch of Elrond dApp store
  • Launch of Elrond name service
  • Ecosystem expansion: sign 10 MoUs for business partnerships, 2 hackathons
  • Launch local community PR & marketing


Q1 2020
  • Introduce Elrond digital identity
  • Launch Elrond DEX

Q2 2020
  • Introduce Palantir - Elrond privacy features
  • Introduce Elrond cross-chain interoperability

Commercial Partnership and Business Development Progress

In order to drive adoption and build a robust ecosystem, Elrond has partnered with several companies and blockchain projects, including the following:

  • Netopia: Netopia is an electronic payment processor from Southeast Europe. Elrond and Netopia aim to jointly explore the potential of integrating ERD into the Netopia payment platform.
  • TypingDNA: TypingDNA is a behavioral biometrics company, protecting online users based on how they type on their keyboards. Elrond and TypingDNA aim to explore the integration of TypingDNA biometrics solutions into the Elrond platform and future products in order to improve security.
  • SmartBill: SmartBill is a fintech company providing SaaS-based services to small, and medium-sized businesses for invoicing, accounting and inventory management. Elrond and SmartBill aim to explore the potential integration of the two platforms to provide to their users and clients blockchain-based features for transparency or traceability.
  • NASH (formerly known as NEX): NASH is a decentalized cryptocurrency exchange. Elrond and Nash aim to explore the potential integration of Elrond blockchain platform ERD into the NASH payment platform, allowing their users and clients to trade and acquire ERD tokens across different platforms.
  • Distributed Systems Research Laboratory (DSRL): DSRL is a laboratory focusing on distributed systems related research areas such as machine learning, big data analytics, and IOT. Elrond and DSRL aim to collaborate on Blockchain Research and educational initiatives.

TEAM OVERVIEW

  • Beniamin Mincu
    CEO

    Product & Business at NEM Core, co-founder & CEO at ICO Market Data and Metachain Capital, investor in 30+ startups.

  • Lucian Todea
    COO

    Founder & CEO Soft32, 10M users/month, Partner mobilPay, Angel investor.

  • Lucian Mincu
    CIO

    Engineer LIEBL SYSTEMS, co-founder & CTO at ICO Market Data and Metachain Capital, investor in 30+ startups.

  • Felix Crisan
    Head of Research

    CTO of Netopia, co-founder of BTKO, Romania's first Bitcoin exchange platform.

  • Radu Chis
    Head of Technology

    Engineer NTT DATA, Olympiad champion, CS Teaching Assistent Lucian Blaga Sibiu, PhD CS.

  • Adrian Dobrita
    Head of Engineering

    Engineer Intel, ST-Ericsson, Continental, AI Olympiad champion, MSc CS.

  • Sebastian Marian
    Core Developer

    Engineer Continental, Multiple world AI RoboCup Olympiad champion, RoboCup Executive & Technical Committee, CS Olympiad champion, BS CS.

  • Iulian Pascalau
    Core Developer

    Engineer Compa, IoT specialization, BS CS.

  • Corcoveanu Cristian
    Software Engineer

    Full stack Engineer NTT DATA, BS CS.

  • Andrei Marinica
    Software Engineer

    Engineer Microsoft, BOC Group, Qiagen, Physics & Math Olympiad champion, MSc CS.

  • Robert Sasu
    Core Developer

    Engineer Continental, Google summer code school, E-mobility startup, Math and CS Olympiad champion, 20 patents autonomous cars, BS CS, MSc Graphics VR.

  • Camil Ioan Banicioiu
    Research Engineer

    Freelence engineer, PhD student AI & ML.

  • Radu Paun
    Software Engineer

    Engineer Keepcalling, Mobile dev, MSc CS.

  • Valentin Lup
    Senior System Administrator

    SysAdmin Soft32, Networking, Assistant teacher CS, BS CS.

  • Beniamin Drasovean
    Junior Software Engineer

    Engineer, BE CS.

  • Dan Voicu
    Head of Communication

    PR & Market Analysis ICO Market Data, Administrative Officer Metal Ship Building, BA Political Science, MSc Business.

  • Daniel Serb
    Head of Marketing and PR

    Communication Specialist Continental, Recruitment Consultant Frank Recruitment Group, BA International Relations.

  • Constantin Tovisi
    User Experience Designer

    Marketing, Product management & BD Soft32, BEc.

  • Larisa Oltean
    UI/UX Designer

    Freelance designer, MSc Design.

TRADING DATA

Liquidity

ERD token is not actively traded as of publish date of this report - the token will be available through the Binance Launchpad portal.

TECHNICAL OVERVIEW

The Elrond team currently has 30 private and public repositories.

GitHub Overview

Top Public GitHub Repositories

Elrond Node Prototype

Java implementation of the Elrond Node Prototype

9 Contributors   733 Commits  
Elrond Wallet Prototype

Cross platform implementation of the Elrond Wallet and Statistics Manager

8 Contributors   178 Commits  

Private GitHub Repository

Elrond Network testnet

Go implementation of the Elrond Node

9 Contributors   878 Commits  
Elrond Network Virtual Machine for Smart Contracts

VM code, VM tests and adapters to Elrond Node

1 Contributor   85 Commits  
Elrond Network wallet and blockchain explorer

Elrond Network blockchain explorer and wallet frontend

3 Contributors   27 Commits  
Agar.io Elrond

Agar.io game for Elrond Network, Smart Contract and frontend for the dApp

2 Contributors   15 Commits  
Elrond-VM-common

Common structures between VM and Elrond Node

3 Contributors   22 Commits  

BLOCKCHAIN & NETWORK DATA

The blockchain has low system requirements and can run on anything from an ordinary computer to T2 medium AWS machines.

The blockchain features epochs of ~24 hours and rounds of ~5 seconds.

All the validators in Elrond’s network will be split among multiple shards, where they will only have to synchronize the state for the current shards and process transactions only for their current shard. In order to prevent collusion amongst validators, up to ⅓ of the validators in a shard will be reshuffled to other shards at the end of every epoch. Liveness is not affected by this because the fast state synchronization for the newly reshuffled validators needs to synchronize only the state for the current epoch (~24 hours timeframe), while the remaining ⅔ of the unshuffled validators in the shard can still process transactions.

Each shard will consist of 400-600 validators and have a separate chain, accounts and application state. The consensus group (currently set to be n=63) changes every round based on a randomness seed stored in the previous block’s header. These validators in the consensus group need to agree on the proposed block in every round of every epoch.

Based on the randomness source in the previous block, n validators are chosen using a deterministic function. Every other validator in the shard can compute the n validators and verify the correctness of this nomination. The first selected validator will be the block proposer for the current round.

The block proposer signs the previous randomness source with a BLS single signature to generate the next randomness source, creates a block with transactions, adds the new randomness source in the block header and broadcasts this block to consensus group members.

Each member validates the block, also validating that the new randomness source is a signature verifiable with the leader’s public key on the old randomness source. If both are valid, it creates a BLS signature on the proposed block and sends this back to the leader.

The block proposer selects from among all received signatures, creating a subset of at least ⅔*n + 1 signatures, and creates a bitmap for his selection, where B[i]=1 if the ith member of consensus group was selected and B[i]=0 otherwise. The proposer then aggregates the signatures and attaches the bitmap and signature to the block. It must also sign the end result to "seal" the configuration for (B[ ], aggSig) before propagating the resulted block through gossip inside the shard.

Cross-shard Transaction Processing

For an in-depth example of how the cross-shard transactions are being executed and how the communication between shards and the metachain occurs, the entire process is illustrated using the simple two shard case and the metachain as shown in the figure below.

The strategy for processing one cross-shard transaction is to use an asynchronous model. Validation and processing is done first in the sender’s shard, notarized in the metachain and then finalized in the receiver’s shard.

  • Step 1: The cross-shard transactions are first processed and added to a block in the sender’s shard. The transaction value has thus been deducted from the sender’s account.
  • Step 2: The block header is sent to the metachain where it is added to a metablock.
  • Step 3: The metablock arrives in the destination shard and then needs to be processed there. The destination shard requests the transaction from the sender’s shard (if missing).
  • Step 4: The transaction is then added in a block in the destination shard and the block header is sent to the metachain. As a result, the transaction value has been added to the recipient account.
  • Step 5: The metachain notarizes the block that includes the processed transaction in the destination shard and the transaction is then finalized.

This iteration consists of static state sharding, secure proof of stake consensus, Schnorr signature for transactions, BLS signatures for random seed generation, and modified BLS multisig for blocksigning.

Metrics that are being monitored to check improvement of the network include: latency, bandwidth limitations, running each validator node on a separate machine with very limited compute power (average dual-core CPU with 4GB of memory), and different geographic locations.

Key stats for the current testnet are as follows:

  • Sharding setup: 5 Shards + Metachain
  • Nodes: 500 x AWS T2.medium (validator nodes) and AWS 12 x T2.large (observer nodes)
  • Nodes per shard: 83
  • Consensus: BLS round every 6 seconds on each shard
  • Consensus size: 63 nodes per shard
  • Max-Blocksize: ~800KB
  • Peak-TPS: ~12,500

The team is currently working on improving the network stack used for communication to reduce the bandwidth and network overhead within the consensus group of each shard.

Another improvement from the initial prototype architecture, has been upgrading the consensus model to reduce the number of communication rounds between consensus groups on each shard from 5 to 2.

An illustration of Elrond’s latest implementation of Secure Proof of Stake is as follows:

An illustration of Elrond’s Adaptive State Sharding Approach is as follows:

The upcoming testnet releases will include a public adversary game (Battle of Stakes) that will combine all the metrics together and will produce the highest level of stressing the protocol, allowing us to improve and find new opportunities for improvement. New stress results will follow in the upcoming weeks.

COMMUNITY DATA

General Community Growth Strategy:

By leveraging social mining through its community platform, the Elrond team employs an open bounty and reputation system to continuously engage its community and grow the Elrond ecosystem. Through this system, the Elrond team has focused on constant and inclusive interaction, and is regularly devising campaigns to consolidate the community.

The team is also constantly engaging with key opinion leaders from various countries, to grow outreach and raise awareness about Elrond.

  1. At a rather early stage of the Project, Elrond open sourced their prototype, starting a conversation with developers about the latest innovations in the space.
  2. Releasing the testnet wallet gave everyone the opportunity to interact directly with the Elrond blockchain, and provide useful feedback.
  3. The Battle of Stakes program, slated to be released in Q3 2019, is designed to encourage testnet participants to collude and take over the network.
  4. Through hackathons, the Elrond team opens up the opportunity for enterprises and developers to fully test the network and complete challenges.
  5. At a later stage, the Elrond team intends to launch a few bug bounty programs to speed up development.

The team plans to continue their AMA series targeting specific regions of the world. Next AMAs will focus on Asia, Russia, and Central Europe, and will be conducted in multiple languages.

Growth Strategy through Events and Conferences

Elrond has been present at a few significant conferences and technical events such as SFBW, Devcon, Blockchain Malta Summit, and have also held a number of local meetups to get first hand feedback from the community.

More events (to be announced) are lined up where the team will showcase their testnet demo and discuss other partnership opportunities.

Community and Social Channels

APPENDIX

Elrond Testnet

Advisors

  • Raul Jordan | Ethereum core developer
  • Alex Iskold | Partner at 2048 Ventures, former Managing Director at Techstars NYC
  • Fabio C. Canesin | Co-Founder of City of Zion and Nash (former NEX)
  • Alex Tabarrok | Professor of Economics at George Mason University
  • Grigore Rosu | Professor in the Department of Computer Science at UIUC
  • Andrei Pitis | VP of Engineering and Head of Bucharest Office at Fitbit
  • Ethan Fast | CS PhD from Stanford, Co-Founder of City of Zion and Nash (former NEX)

Reviews

Videos & Interviews

Podcast, AMA, and Conference

Media Mentions

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