Elrond was founded as a solution to blockchain scalability. Using the blockchain management technique called sharding, the Elrond Network can facilitate faster transaction speeds, and is reportedly capable of processing 15,000 smart contract transactions per second at a US$0.001 transaction cost. Elrond aims to encourage developers to participate in its network, doing so, Elrond facilitates up to 30% royalties for developers who create smart contracts on the Elrond network. The Elrond network uses a secured proof of stake mechanism, which means the Elrond native token, Elrond eGold (EGLD) can be staked to support the network and earn staking rewards. Initially minted on the Binance Chain, EGLD also exists on the Ethereum Chain, and is used to pay for transaction fees as well as a store of value and governance token on the Elrond Network.