About MultiversX
MultiversX (formerly Elrond) is a crypto that went through a denomination, rebranding, and showed a jump in value of more than 8000% in less than a year after listing. At the beginning of 2020, a new economic model of tokens was introduced, according to which ERD coins were replaced with new EGLD coins and underwent the denomination from 1000 ERD to 1 EGLD. It significantly reduced the maximum token supply. In 10 years, EGLD will not be produced. This change was made in order to adopt an improved deflationary economic model. In November 2022, Elrond announced its transformation into MultiversX, thus demonstrating the expansion of its mission to create a new Internet economy and comprise the digital metaspace.
What Is MultiversX (EGLD)?
MultiversX is a blockchain designed to offer exceptional scalability, interoperability, and high transaction processing capacity. The team behind the project aspires to establish a decentralized network that would be able to perform as well or better than centralized networks, while also ensuring users' privacy. With the aim of achieving this, MultiversX employs Adaptive State Sharding technology and Secure Proof of Stake (SPoS) consensus algorithm. Currently, MultiversX (EGLD) ranks as the 49th biggest crypto globally based on market capitalization.
How MultiversX Works
MultiversX is an innovative blockchain network that leverages adaptive state sharing technology, smart architecture and secure proof of stake mechanisms to enhance transaction throughput, security, and decentralization. These innovative features have contributed to the platform's booming popularity in the crypto industry.
Structure of the MultiversX blockchain
The thoughtful architecture of the MultiversX network consists of the following key elements:
- Users who initiate transactions on the network;
- Nodes or special devices that are connected to the network in order to process transactions;
- Validators, or special nodes that stake EGLD tokens and thereby provide block generation and consensus formation in exchange for a reward.
- Shards, chains of blocks into which the network is divided in order to distribute the load and provide a high level of scalability and performance;
- Metachain, which is a blockchain operating in a special shard, is responsible for notarization and finalization of processed block headers from shards, communication between shards, storage and maintenance of the register of validators, launching new epochs, rewards, slashing, and more.
- EGLD tokens that act as an entry point to the network and provide the means to pay for transactions, deploy decentralized applications, store, execute smart contracts, and reward validators.
Adaptive State Sharding technology
The network utilizes shards to process transactions, which enables the system to process transactions more efficiently by splitting them among different shards. MultiversX boasts near-instantaneous transaction speed and linear scaling, allowing the network to grow seamlessly. According to the MultiversX website, the network can handle a quarter of a million TPS, while adaptive state sharding is capable of handling up to 260,000 TPS based on testnet results.
Adaptive state sharding serves a number of key purposes of MultiversX:
- good level of scalability without compromising network availability.
- predefine and easily determine the destination of transactions, to enable instant traceability and dispatch.
- balance achieved through adaptability of shards;
- handling changes in demand without affecting network security.
In MultiversX network, the blockchain timeline is divided into epochs and rounds, which have a fixed duration. At the end of each epoch, shards are truncated and reorganized throughout the network. As each new round begins, a new consensus group is randomly selected to add the first block.
The platform also features reduced storage requirements and improved linear scaling as new nodes join the network. The combination of linear scaling and parallel processing is a key factor that will allow MultiversX to surpass the throughput of centralized solutions currently available.
Secure Proof of Stake (SPoS)
In order to improve on existing variants of Proof of Stake mechanisms, MultiversX has resorted to the revolutionary SPoS consensus mechanism. It allows to reduce network latency and inform any node in the shard about which members will be part of the consensus group at the beginning of each round.
Randomization is provided by the aggregated signature from the last block, and the integration of Bellard and Neven's multi-signature scheme reduces the number of mandatory rounds of data exchange in the signature algorithm.
A more complex version of Proof of Stake, which is used by MultiversX, ensures a fair distribution of shards and helps to achieve a compromise between security and increased requirements in terms of energy and computing.
What Is EGLD Used For?
The eGold Token (EGLD) is a critical component of the MultiversX network, and it plays a significant role in supporting its various functions. EGLD is an ERC-20 token that serves as the primary means of exchange and value transfer within the MultiversX network. It enables users to access and use a wide range of features, including staking, governance, transactions, smart contracts, and validator rewards.
One of the most significant uses of EGLD is in staking. Users can stake their EGLD tokens to help secure the network and earn rewards in return. The more EGLD a user stakes, the higher the chances of being selected as a validator, and the greater the rewards they can earn.
EGLD is also used in network governance, giving token holders a say in important decisions that affect the network's future. Token holders can vote on proposals and make suggestions on how to improve the network, giving them a voice in shaping the platform's direction.
In addition, EGLD is used to pay for transactions on the MultiversX network, making it a vital part of the platform's ecosystem. Smart contracts deployed on the network also require EGLD to execute, and developers can earn EGLD by creating and deploying new contracts.
Finally, validators play a crucial role in maintaining network security and validating transactions, and they are rewarded with EGLD tokens for their work. This incentivizes validators to keep the network secure and running smoothly, ensuring that the platform remains reliable and functional.
Where can you buy EGLD?
EGLD can be purchased on many major exchanges with fiat currencies such as USD and EUR. It is also very easy to exchange it for other crypto or stablecoins here at Godex.io. MultiversX can be bought and sold in both the derivatives market and the spot market.
