What is MultiversX (EGLD)?

MultiversX represents a blockchain protocol aiming to deliver swift transaction speeds through the utilization of sharding. Positioned as a technological ecosystem for the emerging Internet landscape, it encompasses fintech, decentralized finance, and the Internet of Things. 

Its execution platform for smart contracts reportedly achieves 15,000 transactions per second, boasts a six-second latency, and incurs a transaction cost of $0.001.

The MultiversX system incentivizes community engagement and active involvement by rewarding participants with EGLD tokens. EGLD, also known as Electronic Gold, serves as the native token for Elrond. Functioning as a currency for storing value and paying for network usage, EGLD facilitates exchanges between platform users and validators. Transaction fees within the platform are settled using EGLD, while validators offer their services.

EGLD enables developers to deploy smart contracts, protocols, and decentralized applications (dApps) on the MultiversX platform, empowering participants to engage in various network activities. It manages the Elrond network through mechanisms such as staking, validation rewards, and transaction fees. Furthermore, as a governance token, EGLD holders possess the authority to vote on network-related decisions.

MultiversX made its initial announcement in August 2019 and officially launched its mainnet in July 2020.

How does Elrond belong to MultiversX?

Elrond, a public blockchain platform employing smart contracts and a Layer 1 sharding technique, aims to address scalability issues and facilitate the creation of decentralized applications (DApps), thereby establishing a fresh internet ecosystem.

In November 2022, Elrond underwent a rebranding as MultiversX and has since redirected its attention toward the expanding metaverse market.

Who founded MultiversX?

Founded in late 2017, MultiversX was established by Beniamin and Lucian Mincu, in collaboration with Lucian Todea, as a remedy for blockchain scalability issues, which they identified as the most urgent challenge confronting the industry.

Preceding MultiversX, Beniamin, and Lucian Mincu jointly established MetaChain Capital, a digital asset investment fund. Within this, Beniamin Mincu assumed the role of CEO, while Lucian Mincu served as the chief technology officer. They also jointly founded ICO Market Data, an aggregator of information related to initial coin offerings.

Beniamin Mincu previously held responsibilities encompassing product, marketing, and community for the blockchain platform NEM from 2014 to 2015. Furthermore, he was an early investor in projects like Zilliqa (ZIL), Tezos (XTZ), Brave, and Binance. Lucian Mincu possesses additional experience as an information technology engineer and security specialist, having worked with Uhrenwerk 24, Cetto, and Liebl Systems.

Lucian Todea is a seasoned tech entrepreneur who formerly founded and led Soft32, a software review and download platform. He was also a partner at mobilPay, a mobile payments application. Additionally, he is an angel investor in companies such as TypingDNA and SmartBill, specializing in biometrics technology and accounting platforms, respectively.

How Does MultiversX Operate?

As per the MultiversX crypto team, the project employs three segmentation methods—state, transactions, and network—utilizing parallel processing to expedite transaction times and boost their quantity.

MultiversX is an extensive software employing Adaptive State Sharding to scale while utilizing shared infrastructure to accommodate an increasing array of applications and transactions on the ledger. An iteration of the conventional PoS operational protocol ensures connectivity of all network sections while in sharding mode. Consequently, the integrated environment actively engages in dApp development, simulating various products and services.

The developers of MultiversX amalgamated three sharding techniques to craft their distinctive adaptive approach. They partition the network into four shards: three handling transaction execution, validating 5400 transactions per second, while the fourth, Metachain, oversees and finalizes transactions.

The sharding methods encompass: State sharding, distributing the network's history across shards; Transaction sharding, mapping, and processing transactions within segments; Network sharding, grouping nodes for processing and communication optimization through network slicing.

What sets MultiversX apart?

Describing itself as a blockchain platform catering to the new internet economy, decentralized applications, and enterprise use, MultiversX stands out due to its high scalability. It claims to be the first blockchain network implementing state, network, and transaction sharding. The platform aims to establish EGLD as a store-of-value asset while building its ecosystem, as per its economics paper.

To attain its objectives, the network operates through 2,169 validator nodes divided into four shards: three execution shards capable of 5,400 transactions per second each, and one coordination shard known as the "Metachain." Elrond's adaptive state sharding architecture effectively shards state, transactions, and network, capable of scaling by adding additional shards to meet throughput demands. Public testing revealed it ran at 263,000 TPS with 1,500 nodes from 29 countries grouped in 50 shards.

In an effort to boost adoption, the project supports developers on the platform, enabling them to earn 30% of the smart contract fees as royalties. During its initial year, the company maintains a supply of EGLD tokens to stake on the network, offering validator nodes a 36% annual percentage rate.

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