Tokenization creates a digital asset that retains the asset's value. It is therefore immediately eligible to participate in global markets. Blockchain technology is a powerful growth catalyst for the internet economy.
Blockchain tokens, in their current implementation, require a Smart Contract to be deployed and utilized. Due to the unique blockchain knowledge and resources needed, this has significant implications for managing and creating a token.
Additionally, the storage and computational requirements associated with Smart Contracts as well as the token operations themselves are a burden on the underlying infrastructure.
The implementation of the Elrond Standard Digit Token (ESDT), and Non-Fungible tokens solve these problems. It also brings a variety of innovations that will increase the utility and value of tokens on the Elrond Network.
Protocol Integration - High Speeds and Low Costs
The Elrond ESDT protocol implements the Elrond standard. A token issued on Elrond doesn't need its own smart contracts, which significantly reduces its storage footprint.
A token transfer transaction does NOT need to be processed via the Virtual Machine. Token transfers can be done by regular transactions, where the token ID and the amount to be transferred are added into the data field. This speeds up the transfer and lowers gas costs. The storage fee is for additional data bytes in the data field.
Smart Accounts - True Ownership
Elrond Smart Accounts come with an associated data tray. Any account can have key-value storage, where balances of any number are stored. Instead of being associated with the account's address in a smart contract, tokens can be effectively assigned to it.
True ownership will have powerful economic, legal, and psychological consequences. This network is low-latency, high throughput, and inexpensive, which will encourage adoption in areas that were previously difficult to decentralize.
Native Use of Tokens in Smart Contracts
Elrond Smart contracts are defaulted to being "non-payable", which means that any balance transfer in their direction will be rejected. This saves a lot of money and time in the event of mistakes.
A smart contract that is "payable" can accept tokens and can also be triggered by ESDT token transfer by method invocation using additional information in the data field.
High Speed & Low Cost for NFTs and SFTs
Elrond NFTs can be ESDTs that have additional metadata. Some examples of metadata include royalty information which allows the creator of the NFT to receive royalties or URI information linking to external information such as the location and name of the associated media file on a distributed file system.
This allows for high speed and low-cost transactions by Elrond NFTs or SFTs managing, minting, and transfer transactions.
Even more important, the cost of NFT and SFT operations is almost negligible
- $0.20 to register an NFT trademark -> no Ethereum equivalent
- $0.01 to create a NFT -> $100-$600 on Ethereum
- $0.01 to transfer an NFT-> $100 on Ethereum
Fuel for Elrond 2.0
The ESDT standard can be found on the Elrond Public Devnet. It will be available with the next major upgrade to the mainnet.
The Elrond Network has pioneered token innovations that will be used in the imminent launch of the Maiar Exchange, and other Elrond DeFi 2.0 modules.
You can transfer stable coins to any country in the world at near-instant speed and at negligible cost. Swapping assets is quick and easy. You can mint and transfer NFTs for as little as a nickel. They all come with beautiful UXs, which are available to anyone, anyplace.