FAQ

Whether you’re a crypto beginner or an advanced user: check out our FAQ for information on the technology behind the Elrond blockchain, Elrond’s native token EGLD, staking and more.

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FAQ Elrond blockchain

The Elrond blockchain is a pioneering open-source transaction technology. It is ideally suited for the exchange, validation, and documentation of valuable data, such as that generated by payment transactions, the conclusion of contracts, or the transfer of property rights. The Elrond blockchain is highly scalable, extremely fast and very secure.

  • Transaction costs extremely low (<0.001 US$) and independent of national borders (visit our cost calculator)
  • Transaction speed (6s latency)
  • No single point of failure as a point of attack as with central institutions (e.g. banks, Paypal …)

In the proof-of-stake consensus mechanism, the network is secured by reliable validators (such as Istari Vision).

Validators are randomly selected to sign new blocks.

The amount of the deposited stake (capital) increases the chance of being selected by the algorithm for validation. For clean work, validators are rewarded with so-called rewards (transaction fee), increasing their reputation and the probability of being selected by the algorithm for further validations.

If a validator works poorly, he puts his stake at risk, because he is punished by the algorithm and possibly excluded from the network. The motivation not to cheat increases as the token price rises.

Proof-of-stake (PoS), as used by Elrond, does not require energy-intensive mining hardware to validate transactions, such as Bitcoin. This benefits the environment and decelerates global warming. Bitcoin alone generated 119 TWh of energy consumption in 2019. That’s more than the Netherlands consumes in a year, for example. Moreover, PoS offers a massive speed advantage over PoW. PoW favors high-investment miners. Their power increases exponentially because they get bigger discounts than lower-investment miners when they buy lots of hardware. With PoS, the influence increases linearly. Redistribution in the system remains more or less stable.
The potential applications for the Elrond blockchain are many and diverse. The technology has disruptive potential and will fundamentally change many industries and business models. Learn more in our use cases and on the industry pages.

FAQ EGLD (eGold)

Elrond’s native token – eGold – also known as EGLD, is used for paying network fees, staking and rewarding (rewards) validators. It is rare (a maximum of 31,415,927 EGLD will ever circulate), runs on a low-cost, high-speed blockchain (Elrond Network), and has intrinsic value through its use cases, acting as “fuel” for the Elrond Network. Already, you can use eGold to buy from some online stores (via shopping.io), DeFi online marketplaces (e.g. curate.style), travel agencies (travala.com), and so on.
  • deflationary token model (max. 31,415,927 EGLD)
  • maximum eGold supply reached after 10 years
  • Rewards from staking EGLD, such as special rights to exclusive funding rounds on the Maiar Launchpad
  • Maiar App
    • Credit card
    • bank transfer
  • buy.elrond.com
    • Credit card
    • bank transfer
  • numerous crypto exchanges such as:
    • Binance
    • Crypto.com
    • Bitfinex.com
    • Gate.io
    • Ascendex.com
    • OKEx.com

Overview transaction costs with EGLD.

Transactions are extremely affordable with the Elrond blockchain. The amount of transaction fees depends on the type of transaction you are doing on the Elrond blockchain:

EGLD fees:

Delegation Smart Contract costs:

ESDT minting:

Standard transaction from EGLD: 

Transaction from EGLD with text/comment:  + ( per character)

Smart Contracts: The cost of executing a smart contract depends on the computing power and storage capacity required. A typical smart contract (e.g. delegate) costs approximately  per execution. Did you know? When executing a self-created smart contract, 30% of the transaction fees go back to the creator of the contract in the form of royalties.

NFT: The costs for creating and transferring an NFT are as follows:

  • one-time registration fee (approx. 0,20 €)
  • transfer fees (approx. 0,01 €)
  • Minting fees, if applicable (approx. 0.01 €)

ESDT token: The creation of an individual ESDT token costs: 

+ + ( x Number of characters of the hexadecimal value of the token identifier)

Transferring an ESDT token costs about the same as a standard transaction.

The EGLD cost for executing transactions and SC can be adjusted afterwards by network votes (Governanve), so that a strong price increase of EGLD does not lead to high transaction costs.

Depending on the country you live in, increases in the value of crypto investments may need to be taxed. Please contact your tax advisor for more information.

No, it is a basic functionality of a blockchain that transactions cannot be retracted. Amounts can only be returned by a new transaction.

The Secret Phrase, Seed Phrase, or Private Key are 24 words that act like a password for a wallet. Whoever is in possession of the private key has the assets of a wallet. That is why a Private Key must never be shared. If an unauthorized person has gained access to your Private Key, please immediately create a new wallet at Elrond or in the Maiar App and transfer your assets to the new wallet.

No, because a blockchain is a decentralized distributed data structure, there is no ‘single point of failure’. This means that there is no central point that hackers could attack.

Maiar Wallet.
Maiar is a mobile wallet and global payment app. It aims to reshape the way people interact with money, assets, property titles or other values.

Maiar Launchpad
The Maiar Launchpad gives startups that rely on the Elrond blockchain the opportunity to showcase their idea within the Elrond ecosystem and receive funding.

Maiar Exchange
Maiar Exchange is an online platform provided by Elrond. It offers millions of people global and low-cost transactions between a growing number of (tokenized) assets. To do so it leverages the power of the Elrond network. Maiar Exchange is integrated with the Maiar app and is usable from any internet-enabled device.

FAQ EGLD staking

When staking EGLD, users (delegators) deposit at least one EGLD token with Istari Vision (validator) and thus make a valuable contribution to securing and decentralizing the Elrond blockchain. In return, delegators receive rewards (rewards) in the form of EGLD. The current return is: In order to operate a node (computer) as a validator, the validator must deposit a minimum of 2,500 EGLD. Validating transactions will also be rewarded in the form of EGLD. Delegate your EGLD tokens to Istari Vision to generate passive income …
Validators are network participants who run their own node (PC or server with Elrond software) – such as Istari Vision. EGLD owners can provide their EGLD to validators and become delegators (Staking). This allows validators to run their nodes with delegators’ EGLD. Delegators benefit from rewards generated by their EGLD; validators benefit from the fees they charge for making the nodes available.
To participate in Staking, you must provide at least 1 EGLD. There is no maximum.
Rewards are earnings distributed to you for providing/delegating your EGLD tokens, i.e. your staking earnings. The closest thing we can compare these returns to is interest earned on an overnight deposit account (which we know de facto no longer exists).The current return is:
With the maximum number of 3,200 nodes, the delegator receives a return of approximately 19.65% per annum. Depending on the fees of the staking provider and the amount of EGLD in the top-up of the staking pool, the return decreases. At first glance, the top-up function (expanding staking capacity) does not appear to be yield-driven, but maximizing the scarcity of EGLD leads to less supply in the market in the long run and thus to higher prices. For the first ten years of the Elrond network, rewards are covered by inflation and transaction fees incurred in the system. Inflation is greatest at the beginning and continually weakens. After ten years, rewards will depend solely on transaction fees incurred, i.e., network utilization. For network participants, this means that returns are particularly high in the first few years.
Istari Vision is an official partner of Elrond and offers expertise and years of experience in blockchain & staking. Furthermore, with the largest German-speaking community, we are always available to answer questions and are happy to help. To Staking with Istari Vision …

Yes, you can. If you decide to withdraw the amounts (unstaking), the 10-day waiting period for unbinding applies.

Anytime. At the end of each epoch (approximately 4:30pm daily), Rewards will be distributed. Use the “Claim Now” or “Claim Rewards” button in the Wallet. All available eGold will be sent to you immediately. You can delegate the Rewards again at any time (compound interest).

Yes, you can. Each delegation is taken into account for the calculation of the rewards, based on the amount and the time of sending.

FAQ cryptocurrencies

Blockchain transactions work according to the peer-2-peer principle. Transactions and information are executed and exchanged directly, without central intermediaries such as banks. Traditional value transfer, such as stock trading or a real estate purchase, which until now has relied on notarization, can be handled via the blockchain using smart contracts. Paper contracts can be completely replaced in this way, eliminating the need for expensive, slow central instances. Because the blockchain is decentralized in nature, it has no single point of failure, making it nearly impossible for it to fail.
Worldwide, 1.7 billion people are excluded from the privilege of participating in the financial system. The reason for this is that these people do not / cannot own a bank account. Decentralized Finance (DeFi) opens the door to the financial market for these people as well. The only requirement: an internet-enabled device and a wallet. The wallet acts as an account where cryptocurrencies, such as EGLD, can be managed.
Central instances that occur during the processing of traditional transactions, such as an online bank transfer or even the purchase of tangible assets, cost a lot of time due to delays, while cryptocurrency transactions on the blockchain are fully processed within seconds.
The fees for transactions (see cost calculator) on blockchain-based systems are usually very low. This is made possible by modern and energy-efficient consensus procedures as well as the fundamental elimination of middlemen and the associated costs (account maintenance fee, transfer fee, ATM withdrawal fee, penalty interest, etc.).
A blockchain offers anonymity and transparency at the same time. Transactions, amounts of money, property and assets are assigned to the public addresses of the users on the blockchain and can be clearly viewed. Anyone can see which assets belong to a public address. However, public addresses act as pseudonyms and do not reveal the user who owns a public address. Unless the user independently reveals his identity in connection with his public address, such as on a website.
A major advantage of a decentralized blockchain (= there is no entity operating more than 50% of the network) is its subsequent immutability. Once a transaction is executed, it is documented on the blockchain forever. This rules out manipulation and forgery.
Durch die Integration von Smart Contracts in eine Blockchain-Architektur, werden Türen zu neuen Geschäftsmodellen geöffnet. Smart Contracts ermöglichen die vollumfängliche Automatisierung von Prozessen, Abläufen und Transaktionen. Beispiele sind dezentralisierte Apps (DApps) oder dezentralisierte Handelsplätze (DEX), auf denen Nutzer Vermögenswerte sicher und ohne Mittelsmännern handeln können.
You can learn about a variety of use cases on our website at Use Cases and Industries.
  • Regulation:
    • Cryptocurrencies are still a relatively new technology. As a result, some countries lack regulation, which is why cryptocurrencies have not yet been approved as a means of public payment. With future regulation, there will be laws and clarity Regarding taxation, etc.
      • .
  • Volatility:
    • In part, the prices of cryptocurrencies are subject to strong fluctuations. Who trades with it, goes – with high chances of profit – also a high risk of loss.
  • Anonymity:
    • Frequently, scammers abuse the anonymous nature of the blockchain and crypto novices are cheated out of their tokens. Therefore, never share your private key with others and do not send cryptocurrencies to people who make promises to you.

No. The power consumption of a crypto network depends on the consensus method used. Cryptocurrencies based on proof-of-work (PoW) consensus require high computational capacity and a lot of power (e.g., Bitcoin and Ethereum). Elrond is based on proof-of-stake consensus (PoS) and requires only a fraction of the power. For comparison, the PoW blockchain Bitcoin requires 57,000 times more energy per year than the PoS blockchain Elrond.

Unlike traditional exchanges, there are no opening hours when trading cryptocurrencies.

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Questions & answers

Whether you’re a crypto beginner or advanced, check out our FAQ for information on the technology behind the Elrond blockchain, Elrond’s native token EGLD (eGold), Staking, and Istari Vision.

To the FAQ

Glossary

From “Adaptive State Sharding” to “Wallet”: In our glossary, we dive into important terms from the world of blockchain technology and cryptocurrencies. Simple and understandable for everyone.

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Podcasts

In our podcast series, we give you insights into one of the most innovative and powerful blockchains in the world and talk to industry representatives about their use cases.

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Screencasts

In our screencasts, we show you technical processes, for example functions of the Elrond wallet. Recorded step by step and easy to follow.

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Articlepool

A lot is written about the Elrond blockchain technology, Elrond’s native token EGLD (eGold) and use cases for the Elrond blockchain. We have selected articles worth reading for you.

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Videos

Videos on the Elrond blockchain abound. Click through our selection of video posts and see what influencers from the crypto scene have to say.

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Contact us

Do you have questions about Istari Vision or the potential applications of the Elrond blockchain?
We look forward to getting to know you!

Kontaktformular Englisch Gold
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istari vision contact phone

We are also available by phone and will be happy to call you back!

Phone: +41 415 11 777 1
E-mail: hello@istari.vision

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References

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