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Elrond Blockchain – The Future of Newcomer Tokens?

Ethereum is one of the most common blockchains that new tokens utilize. Using someone else’s infrastructure allows token developers to build on top of existing blockchains instead of creating their own, significantly cutting down development time and challenges. While using ETH for the infrastructure is a popular choice, other public blockchains allow for token distribution.

Elrond is one of the most powerful blockchain technologies available and still relatively new in comparison to BTC. The Elrond mainnet, released in July 2020, has seen a massive increase in traction, with all of their ERC-20 and BEP-2 tokens swapped onto their blockchain, with a transition of 1,000 ERD becoming one eGLD.

How Does the Elrond Blockchain Help Token Creators?

While Bitcoin was the beginning of the cryptocurrency market, Elrond has created a completely different infrastructure, providing many benefits over the two most significant currencies: Bitcoin and Ethereum.

For example, Elrond is currently the only blockchain that uses a Secure Proof of Stake (SPoS) consensus. That eliminates the Proof of Work computation waste and uses random validators and a consensus group compared to Proof of Work (PoW) that both BTC and ETH use. Furthermore, the Elrond blockchain allows for 15K TPS, which is huge compared to any other blockchain. A real game-changer when you consider Bitcoin can handle only 7, and Ethereum, 15.

Not only is Elrond at the peak of technology and performance, but the extremely low network fees also allow for easy adaption and huge transaction rates.

Continuing to look at the benefits Elrond’s blockchain can offer, they have an approximate 5-second latency for the transaction to be set in a block, plus four rounds (24 seconds); thus ~27-second finality, and the blockchain is highly scalable, too. Compare those figures to the top two blockchains now; Bitcoin needs six confirmations or 60 minutes. And Ethereum TX is considered final after 25 confirmations or 6 minutes. Therefore, you can see that Elrond has created some significant improvements.

Not only do Elrond help token creators, but they also provide some considerable benefits to the users too.

Elrond’s network allows for fast, intuitive, and inexpensive token issuing. Integration of the Elrond authentication and TX signing is effortless. The Maiar Wallet Connect enables hundreds of thousands of users to sign in through Maiar Login and instantly pay for services in any dApp, whenever and wherever they need.

Black Hat Network – The Newest Token Planned for the Elrond Blockchain

One of the newest tokens planned for release on the Elrond blockchain is Black Hat Network. Elrond is quite picky when it comes to tokens being released on their blockchain. With only 171 tokens on the blockchain at the time of writing, compared to well over 200,000 on ETH, it is a good sign that Black Hat Network has significant potential.

Still early in its development, Black Hat Network has just seen its one-month birthday and already has over 1400 users on its Telegram group. However, their use case for the token is proof that they aim to change the way people buy digital goods.

Buying and selling with cryptocurrencies is nothing new. However, while some businesses are dipping their toes into the “crypto-commerce” scene, freelancers are left behind. Fiverr started to accept BTC payments pre 2017, but January 2017 saw the end to that due to the Israeli government changing its regulations. Those regulations classified all profits from cryptocurrency as barter transactions, thus subject to capital gains tax, starting at 25%.

Black Hat Network, a worldwide team of freelancers, is not ruled by Israeli tax laws. Therefore, they aim to fill the void created by the demise of other freelancer website’s ability to take cryptocurrency payments.

The Elrond blockchain allows for near-instant transactions and much lower fees than any fiat payment system. That could potentially see a reduction from ~25% fees down to a meager ~5% fee, with the benefits of decentralization and anonymity.

That is not where the benefits end, though. While there is no official release of the whitepaper yet, the team has released information showing their goals are more than just a marketplace for freelancers. They will run the marketplace themselves, all as seasoned freelancers specializing in different areas of digital production. Here are some of the benefits they promise:

· No services unaccepted – providing they are legal

· Highly moderated marketplace

· Escrow system

· Multi-payment options

· Extremely low fees

· And more.

The amalgamation of Black Hat Network and Elrond is a revolutionary movement in progress, and we can see why.

Why Are There No Crypto-Commerce Sites?

Other than the reason already mentioned about Fiverr, a few other businesses have tried to implement cryptocurrency payments into marketplaces. However, for various reasons, they have failed or backtracked. Searching online for cryptocurrency marketplaces will show you well over ten different websites that have attempted the feat. However, most of them are small businesses with no backing.

One of the larger companies that have tried it is Rakuten, but in 2016, they didn’t even get through the start-up. Some of the executives left the businesses, and others were laid off, making the transition to crypto payments impossible. Since then, there are no other updates from the e-commerce giants about revisiting the idea, giving the impression that it is not something they will reconsider.

Therefore, it appears that there is a lack of interest for larger companies to incorporate crypto payments and an inability for smaller teams to complete such a large project.

Conclusion

With the team that Black Hat Network has, the involvement of MG Staking, and their plan to launch on the Elrond blockchain, this project should be the perfect opportunity to see a brand new cryptocurrency marketplace. We look forward to them entering the scene to help all freelancers and corporate businesses bypass some of the excessive fees and difficulties that other platforms cannot remove.

The Elrond blockchain technology provides many benefits, and maybe this is the start of more tokens appearing there; it is certainly something worth keeping an eye on!