In the first place, Elrond is a cryptocurrency with a limited supply. Furthermore, the team describes itself as a new blockchain architecture project, designed to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two features: Adaptive State Sharding mechanism, and a Proof of Stake (PoS) algorithm. Both techniques are needed to help the network scale and make transactions on the network fast and secure. Elrond can process upwards of 10,000 transactions per second (TPS), with 5-second latency, and negligible cost. It aims to become the backbone of a permissionless, borderless, globally accessible internet economy.
In particular, the protocol uses a Virtual Machine specially designed for the Elrond network. This VM is a dedicated smart contract execution engine built on WASM. It expands the family of languages available to smart contract developers to include Rust, C/C++, C#, Typescript. All this to make it possible for any developer to build Turing complete dApps on their infrastructure.
How to earn Passive Income with Elrond
Holders of the ERD tokens can earn crypto dividends. In particular, currently the only option is to delegate stake your ERD tokens. By doing this you have to lock your coins for a minimum period of 7 days before the rewards will be coming in.