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The field of smart contract platforms is one of the most competitive within the cryptocurrency industry. With the likes of Ethereum or Solana, any project that wants to establish itself will have it incredibly difficult.
But MultiversX is not afraid of the challenge, as it is already providing transaction speed that is very difficult to match by any other project. With more than 15,000 TPS per second and a lot of room to scale, MultiversX is definitely a smart contract platform that needs to be looked more into depth.
MultiversX (EGLD), previously known as Elrond (EGD), is a technology ecosystem for the new internet. It aims to include different Financial Technology firms (FinTeChs), Decentralized Finance projects (DeFis) or the Internet of Things (IoTs). It is a project that is seeking to offer extremely fast transactions via the usage of sharding.
It prides itself with one of the fastest and cheapest transactions in the cryptocurrency world. Reportedly, MultiversX should be able to do 15,000 transactions per second (TPS) with transaction costs of a fraction of a cent.
MultiversX is described as a blockchain platform for everyone. It aims to be mostly used for the new economy built around the internet, but also for decentralized applications or enterprises. It also prides itself with being the first protocol that has implemented transaction, network and state sharding have all been implemented. Thanks to this it aims to provide high scalability of transactions.
Currently it has 3,200 validators and has facilitated over 303 million transactions. It has four main shards, three of which are execution shards. Each of them is capable of executing approximately 5,400 transactions per second. The last shard is known as the “Metachain” and is the coordination shard. If necessary, more shards can be added to the process to increase the throughput of transactions.
The broader goal of MultiversX is to introduce the alternative financial system to millions of people and help them move to the world of decentralized finance and metaverse. It also offers a place for developers to create their dApps.
Many believe that in theory, MultiversX is able to run many more transactions and apps than its competition in the likes of Ethereum thanks to its technology and scaling solutions. It, however, needs to establish itself clearly in the very competitive field of smart contract platforms.
MultiversX is a traditional proof-of-stake (PoS) consensus mechanism in which the users that want to reap the benefits of passive income need to stake EGLD tokens. Through this, they participate in the validation process of the network and the transactions that are made on it.
On MultiversX, each validator is assigned a so-called “rating score” that is based solely on the past activity of the given validator. This influences whether or not they are selected for validation. The validators with lower scores will have a lower chance of being selected. Moreover, if their score becomes too low, they might be asked to pay fines. This goes even step further. If the validators are not acting according to the standards of the network, their stakes might get slashed.
In the validation process, validators are randomly selected. This can neither be predicted nor modified and is based on the communication of nodes that use Boneh-Lynn-Shacham (BLS) multi-signatures.
When it comes to technology, MutliversX also uses Adaptive State Sharding. This means that it breaks down the bottleneck of all the work having to run through one block. What this means in reality is that it breaks down everything into smaller blocks. These are independent of each other, but communicate with each other. Thanks to this, they save time.
As we mentioned previously, MultiversX was firstly known as Elrond. However, in November 2022 the project underwent a huge rebranding, in which it changed not only the name from Elrond to MultiversX, but also its main focus.
As per Beniamin Mincu, the CEO of MultiversX, the rebranding has several purposes. He summarized the step as follows:
“MultiversX is building the collaborative framework and composable toolkit to set up the stage for a positive sum game of enormous stakes. For reimagining the entire spectrum of human experience and for reinventing the frontend of every business vertical.”
Mincu also reiterated that both digital and physical realities will benefit from this step. He believes that MultiversX is on the path to create growth, adoption and utility for the real world and the metaverse.
The biggest changes that were introduced, except for the switch of focus on metaverse, are three new products. All of them are designed in a way to become pillars for this shift that would support the growth of metaverse. These are:
All of these should help with the growth of the overall ecosystem of MultiversX. They should not only allow for better implementation and development of new dApps by developers, but also incentivize the inclusion of new users and customers.
Yet, the overall ecosystem is already pretty sizable. Except for the three main pillars it also includes xEchange, xLaunchpand or xSpotlight. Other than that it also includes projects from the subsectors of explorers (eGLDScan, Bitquery), stablecoins (BUSD, wUSDC, wUSDT), NFT marketplaces (Engard, NFTR, Rarity, Frame It), launchpads (BHero, Krogan, Seedify) or metaverse and gaming (Giants, REalm, egld.gg, VUE, holoride).
It also has different onboarding tools and partnership as well as fiat onramps to help with smoother transition from the traditional finance to decentralized finance. This includes for instance Revolut, Travala.com, Huawei, MoonPay, Tokero, Ramp or Swipe.
The project under the name of Elrond was founded in 2019 by the brothers Beniamin and Lucian Mincu. They were joined by Lucian Todea. The mainnet of the project went live in July 2020. Prior to this, the Mincu brothers had co-founded MetaChain Capital, where both of them had leading positions of CEO and CTO respectively.
Their knowledge and experience with the world of cryptocurrencies, however, dates back even more. Beniamin, for instance, was one of the leading personalities in the NEM project in its early stages in 2014 and 2015. He was also one of the early investors in Zilliqa (ZIL), Tezos (XTZ), Brave or even Binance. His brother Lucian used to work for companies such as Uhrenwerk 24, Cetto or Liebl Systems as technology engineer and security specialist.
Prior to MultiversX, Lucian Todea was a CEO of Soft32, a software review and download side which he founded. He was also an angel investor in biometrics tech company TypingDNA and accounting platform SmartBill.
The overall team includes PhDs in Computer Science and Artificial Intelligence, or AI Olympiad Champions. It also has engineers who used to work at companies such as Microsoft, Intel or Google and who previously worked for different blockchain companies.
MultiversX had a relatively complicated private and public sale. The public sale was in the form of Initial Exchange Offering on Binance, during which 25% of the then-token supply was sold. At the time of the release in 2019 the Elrond token (ERD) was issued on Binance Chain with a total supply of 20 billion. In November of the same year 500 million was already burned and minted on Ethereum blockchain as ERC-20 token.
In September 2020 the company launched a token swap. This allowed the holders of ERC-20 tokens and BEP-2 tokens for ERD tokens on the mainnet of Elrond. The whole process included a swap, in which ERD coins were replaced by the new EGLD coins with a ratio of 1,000:1 (1,000 ERD for 1 EGLD). This meant that the overall supply of the token decreased from 20 billion to 20 million tokens.
Currently the token has limited supply that starts at the 20 million EGLD tokens. The maximum it can reach is 31,415,926 EGLD tokens. The expectation, however, is that with more transactions being processed, the number of maximum tokens will slowly decrease.
Other than the fact that the token can be used for staking and thus has a clear financial incentive, the team behind the project explained that the point of EGLD is to work more as a commodity. To be more like a crypto version of a commodity with a low volatility.
While it aims to be a store-of-value-like commodity on the blockchain, EGLD token has governance privileges and functionality. This means that the holders of the token can vote on the decision makings of the network or stake it to receive staking rewards.
MultiversX does have big plans. Its aims are definitely one of the most ambitious in the cryptocurrency world. Luckily for the project, it has a great team and a technology that is ground-breaking. With a solid name in the industry that the project definitely has, the potential of it cannot be underestimated. Especially not after the rebranding, which showed the commitment of the team towards building a unique and incredible experience for its users.
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