MultiversX (EGLD)

MultiversX Overview

MultiversX is a high-performance, public blockchain designed to deliver exceptional security, efficiency, scalability, and interoperability. By leveraging two cutting-edge technologies—Adaptive State Sharding and the Secure Proof of Stake (SPoS) consensus mechanism—MultiversX aims to meet the demands of modern decentralized applications (dApps) while providing rapid transaction speeds and low fees.

With the ability to process over 30,000 transactions per second (TPS), 6-second block times, and instant finality for cross-shard transactions, MultiversX is positioned as a leader in next-generation blockchain infrastructure.

Key Features of MultiversX

1. Adaptive State Sharding:
   This technology enables unlimited scalability by dynamically adjusting the number of shards based on network demand. Each shard handles different parts of the network, including state, transactions, and network communication. This decentralized architecture makes the platform resilient to attacks and ensures the system can scale efficiently as usage grows.
2. Secure Proof of Stake (SPoS):
   SPoS is a consensus mechanism that eliminates the wastefulness of Proof of Work (PoW) and ensures security, efficiency, and fairness. Validators are selected randomly based on their stake and rating, creating an optimized and secure environment for consensus without the heavy energy consumption of traditional mining.
3. Fast Transactions and Low Fees:
   MultiversX can handle over 30,000 transactions per second, providing extremely low transaction fees and fast finality (transactions confirmed in seconds). This makes it an ideal platform for high-volume applications and real-time services.
4. Cross-Shard Transactions:
   The ability to perform transactions across different shards in a matter of seconds ensures that MultiversX can support interoperability between different parts of the network and across multiple decentralized applications.

MultiversX Rebrand: X-Day Paris 2022 Announcement

In 2022, Elrond, the original name of the project, rebranded to MultiversX at its first annual conference, X-Day Paris 2022. This rebrand reflects the project’s expanded vision, which includes enabling the Metaverse and providing tools for creators, developers, and enterprises to build, scale, and thrive in the rapidly growing digital economy. The three new flagship products introduced include:

1. xFabric:
   A sovereign blockchain layer designed for creatives, brands, and companies looking to scale in the expanding Metaverse. It comes with several application modules that allow for efficient and secure blockchain adoption for enterprises.
2. xPortal:
   A Metaverse SuperApp that aims to bridge the gap between the current digital world and the multiverse of opportunities. xPortal allows users to explore and interact with the Metaverse, managing everything from NFTs to Web3 services in one app.
3. xWorlds:
   A creative space for the Metaverse that allows gamers, entrepreneurs, and creators to build, explore, and grow within new virtual environments. xWorlds provides a platform for game developers and creators to push the boundaries of digital experiences in a fully immersive world.

EGLD: The Native Token

The native token of MultiversX is EGLD (Elrond), which powers the network and facilitates various activities within the ecosystem. Some key use cases for EGLD include:

1. Network Transactions:
   EGLD is used to pay transaction fees for interactions with decentralized applications (dApps), smart contracts, Web3 payments, and NFTs on the MultiversX platform.
2. Staking:
   Users can stake EGLD to secure the network by running validator nodes or delegating their tokens to non-custodial staking services. Staking rewards are given in EGLD and help maintain the decentralization and security of the network.
3. Governance:
   EGLD holders can participate in the governance of the platform by voting on on-chain governance proposals. This allows the community to have a say in the development of the protocol, such as upgrades, new features, or other strategic decisions.

MultiversX Ecosystem and Token Management

• Custom Tokens:
  MultiversX enables the creation of custom tokens that are fast, scalable, and inexpensive to transfer. Unlike traditional smart contracts, these tokens do not require the Virtual Machine, which reduces the risk of hidden security vulnerabilities associated with smart contract-based token transfers.
• Smart Contract Royalties:
  MultiversX introduces an innovative approach where 30% of the fees generated from interacting with smart contracts are reallocated to the smart contract authors. This incentivizes developers to build high-quality dApps and offers a way to monetize their work.

Network Components

MultiversX combines several technical elements that work together to create a robust and scalable blockchain ecosystem:

1. Adaptive State Sharding:
   This dynamic, scalable architecture allows the network to handle increasing demand by adjusting the number of shards, thus ensuring uninterrupted performance as the network grows.
2. Secure Proof of Stake (SPoS):
   The SPoS consensus mechanism enhances security and energy efficiency by combining the stake and rating of validators with random selection. It allows the network to maintain decentralization without the wastefulness of Proof of Work (PoW).
3. Cross-Shard Transaction Finality:
   Transactions between different shards are finalized in seconds, which ensures interoperability and seamless communication between various parts of the network.

EGLD Supply and Circulating Supply

As of January 17th, 2023, the maximum supply of EGLD is 31,415,926 tokens, with a current circulating supply of 24,184,559 EGLD (approximately 77% of the total max supply). This distribution supports the ongoing adoption and utility of the token while encouraging staking and governance participation.