Do You Own Sharding Coins? Near Protocol (NEAR) Vs. Elrond (EGLD)

Near Protocol (NEAR) Vs. Elrond (EGLD) - The Sharding Battle

By Cryptofab | Cointune | 10 May 2022


Sharding is a technology allowing to increase a blockchain's throughput, which will be used by ETH 2.0. Several blockchains are already using this technology: Polkadot, Zilliqa, Kadena, Near Protocol and Elrond. In this article, we will focus on Near Protocol and Elrond.

Near Protocol (NEAR)

Near Protocol is a layer-1 blockchain which uses a TPoS (Thresholded Proof of Stake) staking mechanism, designed to be both deterministic and broadly fair so that it does not incentivize pooling of large validators and it encourages broad participation from nodes:

  • Near Protocol has 100 validators. It is planned to decentralize it further with more validators.
  • The maximum inflation of NEAR is 5%, and can go down over time if more transactions fees are burned, which could make NEAR deflationary in the long term.
  • NEAR staking rewards are currently 9.86% and hence the adjusted rewards (by taking around the inflation) are around 5%.
  • The throughput would be over 100,000 TPS (transactions per second) since the recent Nightshade upgrade. The blocktime is 1.05 second.
  • Near Protocol offers EVM compatibility through Aurora which is built on top of Near Protocol as an Ethereum layer-2 blockchain.

Elrond (EGLD)

Elrond is a layer-1 blockchain using SPoS (adaptive State Proof of Stake) which increases scalability, and a token (EGLD) which has widely been marketed as the "eGold".

  • Elrond has 3,200 validators.
  • The inflation rate of EGLD would currently be around 18% according to messari.io but is conceived to go down to zero in about 10 years.
  • The adjusted staking rewards are around 4%.
  • The throughput would be 3,500 TPS per shard and 260,000 TPS max. The blocktime is 6 seconds.
  • Elrond does not offer EVM compatibility.

In summary, these both sharding blockchains offer competitive advantages. The EVM compatibility of Near Protocol through Aurora, combined with the higher number of developers working on dapps for Near compared to Elrond, creates an additional advantage for Near. However, it might be worthwhile to keep a small portion of EGLD in your portofolio since Elrond team can pump EGLD price again, for instance by launching projects on their launchpad.

Please note: it is not a financial advice. DYOR.

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Cryptofab
Cryptofab

I do not want to change the world, but I can contribute to it.


Cointune
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