ELROND Network, $eGLD: Explained

Introduction

I was asked many times by friends and family and even by other people online, what’s the deal with blockchain and why did I invest in $eGLD? What is Elrond Network? What is the idea? What is the potential?

Blockchain in simple terms

A blockchain can be viewed as a distributed ledger that records the provenance of a digital asset. The distributed aspect of it leads to decentralization because no single institution or person controls it. Add a consensus mechanism to that, achieving the ability to transfer information from point A to point B while removing the possibility of duplicating the information (the so-called “double spending problem”) and you get a technology that can run autonomously. Add cryptography to remove the need to link personal details and you get anonymity.

Cryptocurrencies — Brief overview. Understanding context

Bitcoin is the first iteration of the blockchain technology, and the first cryptocurrency created.

  1. Using the blockchain technology for cloud storage. It’s obvious that more and more businesses are going digital or at least have a digital component. And when the name of the game is data, you have to think where will that data be stored. And one of the best options is cloud storage particularly because it gives you access to all of your data from anywhere instantly. And so the business model for this kind of projects is that users “rent” out the unutilised space from their hard drives to earn money and the client’s data is encrypted and stored across many hard drives across the world. For the project’s client it may be a cheaper option than a “traditional” company focused on cloud storage, the projects gets a fee and the users get paid for unutilized space on their hard drives. It’s kind of an Airbnb for digital data if you will.

Elrond Network

What is Elrond Network? A highly scalable, fast and secure blockchain platform for distributed apps, enterprise use cases and the new internet economy.

Step 1: Infrastructure.

Their view? It’s pointless to focus on building anything else until you first build an architecture that brings at least 1000X improvement to the current state of blockchain technology.

  • Expand the number of languages available to developers.
  • 30% royalties of the fees collected by the smart contract go directly to the developer.
  • Whatever custom token you create for the project you build, will have the same speed and scalability as the native $eGLD token. How? Well for that they created the Elrond Standard Digital Token — ESDT. More details here.

My reasoning for investing in $eGLD:

  • If I were to invest in Bitcoin, $BTC because of its scarcity, well Elrond, $eGLD has a similar built-in scarcity. But also, it has something that $BTC does not, which is the scalability component -> $eGLD can be used as a medium of exchange at scale. $BTC cannot.
  • If I were to invest in Ethereum, $ETH because of its capability of being a platform for other projects to build on, well we would have to talk about Ethereum 2.0 but that won’t be a reality for years. Elrond, $eGLD has that capability today.
  • Apart from Elrond, $eGLD that understands that true adoption comes when the technology is easy and simple to interact with, which they are focusing on with Maiar, I don’t see any other project even caring about being user friendly. In a way, it’s understandable because they have to first nail down the technology side of things.
  • An ecosystem of dApps (Decentralized Apps) will be created on Elrond. But it helps a lot if you can bring them in front of users in a user-friendly interface such as Maiar.
  • Searching for solutions to very important problems is a + in my book.
  • I don’t remember seeing any team that works as hard as they do.
  • By pure coincidence, it just so happens that just as the majority of the Elrond’s team, I am from Romania as well and I know more about some of the people around Elrond either as advisers or in different capacities and I can tell you that they had remarkable successes across different industries and particularly technology.
  • Binance $BUSD stable coin will run on Elrond’s Mainnet.
  • They are extraordinary at marketing. And it matters a lot because I know and I am sure you do too, a lot of products and services that are great but nobody ever heard of them. Why do you think that Apple, Nike, Coca-Cola but even companies such as Facebook which has literally billions of users, advertise continuously? It’s not enough to be great, people need to know about you.
  • I am not even going to speculate about what kind of potential collaboration could be between Elrond huge companies such as Samsung and others with whom they worked before and you know, the contacts are in place.

Conclusions

It is important to understand that my reasoning comes from the perspective “If you were to choose one project, with the most chances of becoming a success because they thought of everything and all the pieces of the puzzle fit and work, what would be that project?”

Final thoughts

I wanted to simplify my answers to my friends, family and other’s questions as much as possible. I don’t know if I achieved that, but I hope that at least some useful and valuable information can be found in the above.

Never stop learning. Never stop. Never say “never”.

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