About MultiversX

MultiversX (formerly Elrond Network) is a highly scalable, fast, and secure blockchain platform designed for distributed applications, enterprise use cases, and the new internet economy. As a sharded blockchain network, MultiversX employs a Proof-of-Stake (PoS) based consensus mechanism and supports smart contracts. It scales through the industry’s first adaptive state sharding mechanism, enabling horizontal scaling while maintaining low node hardware requirements.

Source: multiversx

Project Background

MultiversX’s predecessor, Elrond Network, was founded in 2017 by Beniamin Mincu, Lucian Mincu, and Lucian Todea to solve blockchain scalability issues. After years of research and development, Elrond achieved unique sharding technology (Adaptive State Sharding) and a Secure Proof of Stake (SPoS) consensus mechanism, significantly improving network performance. In 2022, it officially rebranded as MultiversX, shifting its focus to the metaverse sector.

MultiversX secured a $1.9 million seed round in June 2019, led by Binance Labs and including Maven11, Electric Capital, Woodstock, and NGC Ventures. The following month, it raised an additional $3.25 million through an Initial Exchange Offering (IEO).

Project Advantages

MultiversX’s two main modules are Adaptive State Sharding and Secure Proof of Stake (SPoS) consensus mechanism.

1. True State Sharding Method:

MultiversX effectively divides the blockchain and account state into multiple shards, processed in parallel by different participating validators. Unlike static sharding, MultiversX’s dynamic adaptive sharding mechanism performs shard merging and splitting based on the number of available validator nodes and network usage.

The dynamic adaptive sharding mechanism pioneered by MultiversX allows for shard computation and reorganization according to the network’s needs and the number of active nodes. At the beginning of each epoch, the reallocation of nodes within shards is gradual and unpredictable, preventing any temporary activity loss.

The flexibility of adaptive state sharding is key to MultiversX’s scalability. It enables the network to expand and contract seamlessly in response to demand fluctuations, maintaining high performance under varying loads. This adaptability is essential for the network’s long-term sustainability and growth.

2. Secure Proof of Stake (SPoS) Consensus Mechanism:

Secure Proof of Stake (SPoS) is an improved variant of Proof of Stake (PoS) that ensures long-term security and distributed fairness while eliminating the need for energy-intensive PoW algorithms. MultiversX’s consensus method combines the selection of validators through randomness with eligibility determined by stake and rating, optimizing the dimensions of the consensus group.

MultiversX uses randomness in operations, such as randomly sampling block proposers and validators into the consensus group and shuffling nodes between shards at the end of a period, contributing to its security.

The SPoS consensus mechanism does not require massive computational resources, making it more environmentally friendly and cost-effective, reducing latency, and allowing each node in a shard to determine the consensus group members (block proposers and validators) at the start of each round.

In addition to the staking factor typically used as the sole input for decision-making in PoS architectures, MultiversX enhances its consensus mechanism with a rating system. The probability of a node being selected for the consensus group considers both its stake and rating. The rating of block proposers is recalculated at the end of each period, and in cases where slashing is warranted, the rating is immediately lowered. This system adds an extra layer of security by promoting elite governance.

MultiversX Ecosystem

Source: multiversx

After shifting its focus to the metaverse sector, MultiversX has over 300 partners, supporting ecosystem projects across multiple dimensions, including DeFi, GameFi, Wallets, Infrastructure, NFT, and Payments, such as xPortal, xExchange, and xBridges.

MultiversX Wallet

As the native wallet of the MultiversX ecosystem, it ensures the security of users’ digital assets when storing, transferring, and exchanging tokens and NFTs on the MultiversX blockchain. It easily connects to various Web3 applications within MultiversX, allowing users to directly participate in staking, liquidity provision, and other yield-generating activities, providing users with a more convenient decentralized operation experience and easy management of on-chain assets.

According to official data, there are currently over 3.8 million wallet accounts, with total transaction assets exceeding $447 million, supporting more than 4,500 asset tokens.

Source: multiversx

xPortal

xPortal supports users in buying, selling, staking, and interacting with cross-chain cryptocurrencies. Users can spend using the xPortal debit card. As a gateway to the ecosystem, it provides services for managing digital assets, accessing DApps, and participating in the MultiversX community. It simplifies interaction operations, lowering the entry barrier for new users.

Source: xportal

xExchange

As a decentralized exchange (DEX) in the MultiversX ecosystem, xExchange supports interactions with 275 crypto assets, with liquidity reaching $36.66 million. Users can not only interact between tokens through xExchange but also provide liquidity to earn token rewards.

xExchange facilitates the exchange and liquidity of token assets on the MultiversX ecosystem. It provides users with a secure and efficient platform for digital asset trading and earning.

Source: xexchange

xBridge

xBridge is MultiversX’s native cross-chain tool, easily linking assets from other networks to the MultiversX network, expanding its asset types, and enhancing the network’s universality and interconnectivity. By enabling interoperability with other networks, xBridge promotes the flow of MultiversX on-chain assets across ecosystems.

Source: bridge.multiversx.com

$EGLD Tokenomics

$EGLD is MultiversX’s decentralized native token and the primary asset used in the MultiversX ecosystem. It can be used for paying network fees, staking, governance, and transactions. The maximum supply is 31,415,926 $EGLD, with an initial minting of 20,000,000 $EGLD. Additional $EGLD will be gradually introduced into circulation over 10 years until reaching the maximum limit.

The “inflation” of $EGLD is offset by the total transaction fees. For example, if 100,000 $EGLD are minted according to the inflation plan for year X, but the total network transaction fees for year X amount to 75,000 $EGLD, only 25,000 new $EGLD will enter circulation. Thus, the powerful economic property of scarcity is designed to expand with adoption.

Source: multiversx

Main Use Cases for $EGLD

1. Network Fees: All transactions on the MultiversX network require $EGLD as a fee. Due to the network’s efficiency, fees are relatively low but still provide sustainable growth for the token economy.
2. Staking Rewards: By staking $EGLD, users can become network nodes, participate in network validation, and receive rewards. This not only incentivizes more users to participate in network governance but also enhances network security.
3. Collateral Use: $EGLD can be used as collateral in decentralized finance (DeFi) applications, enabling lending and earning interest.
4. Decentralized Governance: $EGLD holders can participate in platform governance, voting on the future technical direction and important protocol upgrades. This governance mechanism gives MultiversX a high degree of community drive.

How to Obtain $EGLD Tokens

To obtain $EGLD tokens, you can purchase them through cryptocurrency exchanges. For example, the reputable Gate.io exchange supports buying $EGLD tokens. You only need to create a Gate.io account, complete the KYC process, and then deposit funds into your account to purchase $EGLD tokens directly.

Future Development

MultiversX’s future will be closely tied to the metaverse sector. As the metaverse concept gradually becomes mainstream, MultiversX’s technology will play an increasingly important role in areas such as virtual economy, NFTs, virtual worlds, and RWAs (Real World Assets). Through its low-cost and efficient transaction platform, it will promote the adoption of applications like DeFi and DApps, attracting more developers and users to participate in MultiversX’s ecosystem development, and provide developers with more efficient tools and infrastructure.

Furthermore, with the development of cross-chain technology, MultiversX will further expand its compatibility with more blockchain networks, supporting the interoperability of more decentralized applications and assets.