The upcoming Elrond ICO is issuing tokens to raise funds to develop a value transfer protocol. Elrond seeks to address the scalability of other major value transfer protocols such as bitcoin and litecoin by using sharding technology. Sharding seeks to enhance scalability by splitting the data to be validated by nodes so that every node does not have to process every transaction. The project will also change the consensus model to an algorithm called secure proof of stake. This could be a risky change to make for a project given that there is still a lot of questions over the security of consensus algorithms that are not proof of work. The benefits proposed to be put forward include 10,000 transactions per second and minimal fees. In comparison, the Bitcoin network can process six to seven transactions per second.
The specific dates that the ICO will take place have yet to be released. The team is currently in the process of developing a testnet which is a benefit that they are going to demonstrate project work prior to raising funds. The project currently has social media accounts for Twitter, Telegram, and Medium. The followings are approximately 10,000 for Telegram, 2,000 for Twitter, and 200 for Medium. A huge team has been built for the project but it is still very early in its ICO stage.
- The project will demonstrate some work before raising funds through an ICO
- A large team has already been built
- Proposes a more scalable value transfer protocol
- Still early in the process for the ICO
- Adopting technologies which could compromise the security of the protocol such as sharding and a change to the consensus model