What is MultiversX (EGLD)?
EGLD, also known as eGold, is the native token of the MultiversX blockchain (previously known as Elrond). If you're interested to learn more about its market performance, check out the EGLD price chart above. MultiversX combines concepts like the Internet of Things (IoT), decentralized finance (DeFi), and FinTech into one network. The MultiversX crypto project aims to offer fast transaction speeds for optimal costs. Considering the statistics, MultiversX offers:
- Up to 15,000 transactions per second (TPS)
- Around 6-second latency
- $0.001 transaction fee
MultiversX developed the Elrond Virtual Machine to enable limitless connectivity between various external services. This solution is an effective tool for people who want to use network services to reduce their energy and computing needs.
Overall, MultiversX blockchain aims to strengthen its ecosystem and establish EGLD as a store-of-value asset. To accomplish that, the network employs sharding. Sharding is a scalability technique that divides blockchain into chunks called shards. These shards can be assessed simultaneously.
MultiversX validator nodes are distributed across four shards. Three out of four shards are execution shards, which are able to process up to 16,200 TPS combined. The remaining shard is called Metachain, and it's responsible for coordination. Overall, MultiversX uses 2,169 validator nodes. This technique is the reason why Elrond manages to complete a large number of transactions quickly.
State, transactions, and the whole network of MultiversX are all fully sharded using its adaptive state sharding architecture. Besides, when the throughput need is not satisfied, the network can scale by adding extra shards.
Additionally, to drive the adoption of MultiversX, the project encourages developers to build on the platform by providing them with a chance to receive 30% of the fees collected from smart contracts as royalties.
Who Founded MultiversX?
The MultiversX crypto project was founded by two brothers, Beniamin and Lucian Mincu, together with Lucian Todea.
As a previous founder and CEO of the software review and download website Soft32 and a partner of the mobile payment app mobilPay, Lucian Todea is an experienced tech entrepreneur.
Before founding MultiversX, Beniamin Mincu also worked with a blockchain platform called NEM and invested in projects like Binance, Brave, ad Tezos. Alongside his brother, Beniamin also founded MetaChain Capital and ICO Market Data.
Apart from co-founding the aforementioned projects, Lucian Mincu worked with such projects as Uhrenwerk 24, Cetto, and Liebl Systems, where he gained experience in information technology engineering and security.
The company's key actors also include Felix Crisan (Head of Research), who is the CTO and co-founder of Netopia, as well as Adrian Dobrita (Head of Engineering), who created software for such companies as Samsung, Intel, and Continental.
The team began working on MultiversX (then Elrond) in August 2019. The official launch took place nearly a year later, in July 2020. at the time of the release, the EGLD price was around $13.
How Does the MultiversX Blockchain Work?
MultiversX employs a Secure Proof-of-Stake (SPoS) consensus mechanism.
To take part in the SPoS validation process, nodes must stake their EGLD tokens. Validators are chosen at random depending on the results of the preceding validation round. This means that the validators cannot be predicted or changed.
The selection process is also affected by the validator's rating score, which is assigned based on their previous performance. The MultiversX price value of their staked assets does not play a key role in their chances to become validators, although it may serve as proof of active blockchain participation.
A validator will not be chosen and can be penalized if their rating drops too low. Also, if validators consistently act in a way that compromises the integrity of the network, they can potentially be kicked off the network and have their stake reduced. To avoid collusion, validators are switched between shards on a regular basis.
Additionally, note that users can also become Observer nodes. These are the nodes that have no stake in the network. They connect to the network and transmit information; however, they don't participate in transaction processing and don't receive rewards as a result.
The Purpose of EGLD Coins
EGLD is the engine that powers the entire MultiversX network. It has more than one use case, including:
- Paying network fees. EGLD coins are used to pay for any fees that occur in the MultiversX network.
- Staking. EGLD coins can be staked to secure the network and earn rewards.
- Rewarding validators. The validators of the SPoS consensus mechanism are rewarded in EGLD coins for their work.
- Governance. The holders of EGLD coins can participate in the network's decision-making processes.
Tokenomics of EGLD Coins
The max supply of EGLD coins is 31,415,926. However, it will probably decrease as the number of processed transactions increases. The initial supply of EGLD was 20 million tokens. However, it keeps increasing as new EGLD tokens are minted. Consider examining MultiversX price charts if you intend to buy EGLD coins.
During the first private sale of EGLD, 19% of its initial supply was sold. The public was able to access an additional 7.5% once the tokens were created, while another 15.41% was made available in three-month intervals. Besides that, 25% of the EGLD supply was also sold during an initial exchange offering (IEO) on Binance.
The remaining 56% of the initial supply was distributed for ecosystem rewards, marketing, grants, an accelerator pool for dApp developers, advisors, MultiversX's founders, core team members, the community fund, and ecosystem support. Since the maximum supply is limited, the MultiversX price is expected to increase over time.
EGLD tokens were initially issued as ERD tokens on the Binance Chain based on the BEP-2 token standard. At that time, 20 billion tokens were issued. However, after burning 500 million from this supply, they were minted on Ethereum as ERC-20 tokens. Besides, the platform launched a swap specifically for swapping BEP-2-based tokens for ERC-20-based tokens. This way, EGLD (then ERD) supply was reduced from 20 billion to 20 million.
MultiversX coins can be bought on major cryptocurrency exchanges. Bear in mind that the asset is considered volatile due to frequent changes in the market. The EGLD price has been influenced by the fluctuations of the broader crypto market.
Elrond Rebrand to MultiversX
In November 2022, it was announced about Elrond's rebrand to MultiversX. The main reason for this rebrand was the fact that the network shifted its focus to the metaverse. Together with the rebrand, three new projects were introduced – xFabric, xPortal, and xWorlds. xFabric is a deployable blockchain module and a core for blockchain applications. xPortal is a portal to the Metaverse. xWorlds is a network of interoperable metaverses that also allows to create new ones.
Apart from the newly launched tools, the MultiversX crypto project will still continue working on the fundamentals developed under the name of the Elrond Network.