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A Deep Dive into MultiversX Crypto: The Multiverse Token

In an era where the digital economy is increasing with the use of blockchain technology, the concept of multiples has become a significant change. At the heart of this revolution is MultiversX, the largest platform that is redefining the boundaries of blockchain and cryptocurrency with its unique approach. MultiversX aims to provide a scalable, secure and efficient framework for transactions and applications across various businesses by leveraging advanced technologies such as Secure Proof of Stake (SPoS). This not only demonstrates the platform’s importance in the current crypto space, but also has the potential to shape the future of financial management and beyond.

This article covers the intricacies of MultiversX, starting with its background and what makes it stand out in the crowded blockchain technology space. It will examine in detail the EGLD token, its role and utility, which is the basis of the MultiversX ecosystem. The following sections explain exactly how MultiversX works regarding the use of SPoS for security and efficiency. The benefits and advantages offered by MultiversX and its different users and applications will be examined so that readers can understand the impact and potential of this multi-platform.

Background of MultiversX

History and Founders

Originally called Elrond, MultiversX was founded in 2017 by Lucian Todea, Beniamin Mincu and Lucian Mincu. The founders started a company called MultiversX Network with the vision of growing a good ecosystem of decentralized applications and cryptocurrencies to compete with major blockchains such as Ethereum and Zilliqa. Their efforts resulted in the creation of a platform for smart contracts that is not only efficient but also useful. MultiversX made a major financial transition with private investment in June 2019, successfully raising $1.9 million from various investors. That same month, an Initial Exchange Offering (IEO) was held, raising $3.25 million in exchange for 25% of the total token supply.

Evolution from Elrond to MultiversX

The transition from Elrond to MultiversX was a major shift in the focus and productivity of the project. The platform initially distributed its cryptocurrency as the ERD coin, but made a major shift to the EGLD coin when it launched its mainnet in July 2020. The change is part of a broader strategy to enhance the platform’s capabilities and expand it into new technologies such as fintech, the Metaverse, and artificial intelligence. This evolution is more than just a rebrand, it’s a strategy designed to align with a broader vision of integrating multiple technologies to enhance user experience and drive innovation. The name change to MultiversX reflects this desire, emphasizing a commitment to exploring new frontiers and creating standards for new technologies to be used to their full potential.

MultiversX’s expansion and new identity were announced at a three-day event at the Palais Brognat in Paris, with the participation of French Digital key debtors such as French Minister of Digital Transformation and Telecommunications Jean-Noel Barrot and Minister Sebastian Burduja. . The Head of the Transformation and Telecommunications Department attended the event. For example, Elrond Wallet became MultiversX Wallet, Maiar DEX became xExchange, Maiar Launchpad became xLaunchpad, and many more. These changes demonstrate the platform’s continued commitment to innovation and ability to adapt to the rapidly changing digital landscape.

What is MultiversX?

Overview of the Platform

MultiversX, formerly known as Elrond, is a high-performance public blockchain designed to deliver significant improvements in the security, performance, scalability and interoperability of existing blockchain systems. At its core, MultiversX leverages a number of unique technical and architectural innovations to meet the needs of modern users. The platform spans more than 3,200 available systems, ensuring high security and efficiency. It supports many applications and especially high-speed operations at close to 263,000 transactions per second.

Key Features and Innovations

1. Adaptive State Sharding: MultiversX is the first blockchain to implement a fully operational Adaptive State Sharding mechanism. This technology divides the network into multiple shards that can process transactions and smart contracts independently and simultaneously. This approach not only enhances the scalability of the network but also allows it to dynamically adjust to changes in network load and demand.

2. Secure Proof of Stake (SPoS): The SPoS consensus mechanism is a cornerstone of MultiversX’s architecture, promoting both energy efficiency and security. It uses a randomized process for validator selection, ensuring an unbiased and secure environment for processing transactions. This method is less energy-intensive compared to traditional Proof of Work systems and provides strong security guarantees against various types of attacks.

3. WASM-Based Virtual Machine: MultiversX features a cutting-edge virtual machine that supports smart contracts written in multiple programming languages. This virtual machine is optimized for speed, making it one of the fastest in the blockchain space. Developers can write, compile, and execute smart contracts efficiently, which is crucial for creating responsive and complex decentralized applications.

4. Developer Incentives: Recognizing the importance of developers in ecosystem growth, MultiversX offers substantial incentives. Developers receive 30% of the gas fees every time their smart contracts are called, which encourages ongoing development and maintenance of applications.

5. High Security and User Experience: The network design incorporates advanced security measures and offers a safe user experience. The combination of its sharding mechanism and SPoS consensus ensures that the network remains secure even as it scales to support a larger number of transactions and complex applications.

By leveraging these key features, MultiversX aims to address the common challenges faced by earlier blockchain platforms, such as scalability and speed, while also ensuring high security and user accessibility. This makes it an attractive platform for developers looking to build decentralized applications and for users seeking a fast, secure, and scalable blockchain solution.

The EGLD Token

Role and Purpose

The EGLD token, previously known as ERD before its rebranding, serves as the native mainnet token of the MultiversX platform. This transition from ERD to EGLD was not simply a change of name but a significant upgrade, enhancing the token’s utility and integration within the ecosystem. Each EGLD token is equivalent to 1,000 ERD, reflecting a recalibration of value that aligns with the platform’s expanded capabilities and vision.

EGLD is fundamental to the operations of the MultiversX network. It is utilized by users and developers for a variety of essential functions such as transferring value and assets, creating and managing tokens, deploying and interacting with smart contracts, and participating in network governance. Validators, who play a crucial role in maintaining the security and consensus of the network, earn EGLD as rewards for their contributions. This creates a robust economic loop where the token not only facilitates network operations but also incentivizes participation and security.

Economic Model and Supply

The economic model of MultiversX is carefully designed to ensure long-term viability and stability. The supply of EGLD is capped at a maximum of 31,415,926 tokens, a strategic decision to imbue the currency with scarcity, thus potentially increasing its value over time. Initially, during the network’s bootstrapping phase, 20,000,000 EGLD were minted. This initial supply provided the liquidity necessary for the network’s early operations and to incentivize the first wave of adopters and validators.

The issuance of new EGLD tokens is meticulously regulated through a combination of minting and transaction fee dynamics. Over a ten-year period, additional EGLD tokens will be gradually introduced into the market. However, this minting process is counterbalanced by the transaction fees generated within the network. For example, if the inflation schedule calls for 100,000 EGLD to be minted in a given year, but transaction fees for that year amount to 75,000 EGLD, only 25,000 new EGLD will be released into circulation. This mechanism not only controls inflation but also aligns the token’s supply with actual network usage and growth.

Moreover, the MultiversX platform offers an attractive incentive model for developers, who receive 30% of the gas fees generated from the execution of their smart contracts. This not only encourages the development of applications on the platform but also ensures that developers are compensated for their contributions to the ecosystem’s growth and diversity.

How MultiversX Works

Adaptive State Sharding

MultiversX employs a sophisticated sharding mechanism known as Adaptive State Sharding, which combines network, transaction, and state sharding to optimize performance and scalability. This approach allows the network to process transactions in parallel, significantly enhancing throughput and efficiency. Shards are dynamically adjusted based on network load and demand, ensuring optimal performance without compromising security or availability.

Network sharding organizes nodes into groups, optimizing communication within shards and speeding up transaction processing. Transaction sharding assigns transactions to specific shards based on the sender’s address, streamlining the execution process. State sharding is particularly complex, as it involves each shard maintaining only a portion of the network’s state, which necessitates coordination between shards for transactions that span multiple shards.

To maintain security and prevent collusion, nodes are regularly reshuffled between shards at the end of each epoch. This shuffling process is critical as it prevents any single group from gaining control over a shard, thereby enhancing the overall security of the network. The shuffling is nondeterministic and uniform, ensuring that it cannot be predicted or influenced, which is crucial for maintaining the integrity and fairness of the network.

Secure Proof of Stake (SPoS)

The Secure Proof of Stake (SPoS) consensus mechanism is a core component of how MultiversX operates. SPoS enhances the traditional Proof of Stake model by incorporating a random selection process for choosing validators, which is crucial for securing the network and ensuring fairness. The randomness source used in this selection process is derived from the previous block and cannot be influenced, ensuring that the selection of validators is both fair and unpredictable.

During each round, a new group of validators is selected, and among them, one is chosen as the block proposer based on the smallest hash of their public key and the randomness source. This block proposer is responsible for creating the block for that round, which is then validated and signed by the rest of the consensus group. This process is highly efficient, with the selection of the consensus group taking less than 100 milliseconds, significantly reducing the round time and enhancing the throughput of the network.

SPoS also takes into account the stake and the rating of validators, promoting a meritocratic system where validators with higher ratings, reflecting their reliability and past behavior, are more likely to be chosen. This system not only incentivizes validators to perform well but also ensures that the most reliable participants are tasked with maintaining the security and stability of the network.

Benefits and Advantages

Scalability and Performance

MultiversX has implemented an advanced sharding mechanism known as Adaptive State Sharding, which significantly enhances the scalability and performance of the network. This technology allows the network to dynamically adjust and optimize its performance by processing transactions and smart contracts independently and concurrently across multiple shards. Such adaptability ensures that the network can handle increasing demand and load without a compromise in speed or efficiency.

The platform’s throughput is exceptionally high, capable of processing tens of thousands of transactions per second, which is a considerable improvement over traditional systems. Preliminary simulations and testnet results have shown that MultiversX can handle transaction volumes that exceed those of major payment networks like Visa by more than a thousandfold, thereby offering a scalable solution that can support high- volume applications across various industries.

Security and Sustainability

Security in MultiversX is fortified by its Secure Proof of Stake (SPoS) consensus mechanism, which not only enhances energy efficiency but also ensures a high level of security against various types of attacks. This system prevents issues such as Sybil attacks, long-range attacks, and DDoS attacks by employing techniques like stake locking and the random selection of consensus groups, which make these attacks either too costly or technically challenging to execute.

Furthermore, MultiversX is designed with sustainability in mind. The network operates on a carbon-neutral basis, which is increasingly important as global awareness of environmental issues grows. The platform’s shard pruning mechanism not only improves its storage and bootstrapping capabilities but also ensures long-term sustainability by reducing the overhead associated with maintaining a high-performance network.

By addressing both scalability and security while maintaining a commitment to sustainability, MultiversX presents a compelling advantage for users and developers looking for a robust, efficient, and responsible blockchain solution.

Use Cases and Applications

Decentralized Applications (dApps)

MultiversX has become a powerful framework that supports a wide range of virtual applications, allowing developers to create advanced dApps that can run on the Internet. The platform’s powerful virtual machine allows developers to write, write and run smart contracts in a familiar programming language, making them accessible and efficient for building a business-wide global and tokenized economy. Main applications built by incorporating the decentralized platform The platform improves user interaction and functionality of various blockchain applications by integrating a tight dApp ecosystem.

For example, MultiversX Bridge expands the usability and utility of the platform by making it easier to connect devices via the MultiversX network. Coin charts and statistics, while Gaupa Labs focuses on increasing chain traceability and transparency through blockchain technology. Additionally, Umbrella Network provides oracle-related services through solutions and data recovery, while MultiversX also operates xSafe, a leader in digital asset management.

Developer Ecosystem and Tools

MultiversX is committed to building a productive developer ecosystem through comprehensive tools and resources that simplify the development process. The platform features a developer library with comprehensive information, tutorials, and access to a strong community through channels like Developer Discord and Builders Hub. Like MultiversXBuilders.com (where developers can submit their work) and the xBuilders program (designed specifically to support MultiversX developers). These resources are complemented by a variety of SDKs and development tools in various programming languages ​​such as Rust, Go, JavaScript, Typescript, Python, PHP, and more. Track smart contract designs and testing such as Rust SC framework, Rust testing framework, and MultiversX smart contract development framework.

This tool is designed to help developers create powerful and efficient applications that integrate with the MultiversX blockchain. It provides developers with the necessary tools to build, effectively test and deliver their applications. The tools include the MultiversX CLI and various SDKs to give developers access to a comprehensive, user-friendly environment that supports innovation of blockchain solutions.

Conclusion

During our research on MultiversX, we delved into the many factors that make the platform stand out in the broad field of blockchain technology. From a secure and scalable infrastructure backed by adaptable state sharing and secure proof-of-stake to the economic attractiveness of the EGLD token, MultiversX becomes a beacon for developers and users. Its evolution from Elrond represents not just a rebrand, but also a leap forward in achieving a versatile digital ecosystem capable of supporting Internet-scale decentralized applications.

The service also emphasizes commitment to an innovation-friendly environment, thus seamlessly supporting dApp ecosystems and integration across multiple industries. The potential of blockchain to transform financial transactions while also providing security, efficiency and capacity. Looking ahead, the platform’s role in creating incredible wealth and beyond continues to be a source of interest and excitement. We encourage readers and users to continue following the development of MultiversX, which addresses the challenges and opportunities of the rapidly evolving digital world and promises to pioneer a new era of blockchain utility and innovation.

Author

John Smith
John Smith
John Smith, an Author and Content Creator
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