MultiversX ($EGLD): What is it?


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What is MultiversX ($EGLD)?

MultiversX (formerly Elrond), also known by its ticker EGLD, is an open source and decentralized blockchain.

Its objective is common to that of other protocols: to allow a fast validation of transactions, at a lower cost, be it financial or energetic. To do this, MultiversX uses what is called sharding, which we will present in the next part.

This protocol thinks big. It calls itself a project for the future. For the founders, this future is decentralized finance (DeFi), the Internet of Things (IoT), fintechs, but above all metavers.

This is why in November 2022 a big show was held in Paris to present MultiversX, the new name and the new ambition of the Elrond project. If this protocol allowed the execution of smart contracts, MultiversX sees things even bigger.

From now on, the project is broken down into a multitude of services and functionalities, at different degrees of progress. You’ll find, for example:

  • XFabric, which allows companies to build experiences using blockchain, quickly and without knowing how to code
  • XPortal, which aims to be a portal to the metaverse. The CEO, Beniamin Micu, conceives a universe where the borders between the real and the virtual are blurred. He has partnered with Mastercard to provide a bank card, both virtual and physical, to pay for purchases in both worlds. For those who know the old Elrond, XPortal comes to replace the Maiar application
  • XWorlds, which wants to bring interoperability between the different metaverses. To illustrate, if these are countries, XWorlds would be the planet that groups them. XWorlds has a beta version tested in December by first users
  • And all this is accompanied by different services such as XWallet or XExchange, to serve as a crypto wallet and allow you to exchange your different tokens
page d'accueil multiversx elrond egld

Brief history of MultiversX ($EGLD)

The MultiversX project (formerly Elrond), with its crypto EGLD, was born in 2017.

Three Romanians founded it: brothers Lucian and Benjamin Mincu, along with Lucian Todea (see the team here). All three were pretty familiar with the crypto-currency ecosystem and had been involved in it for several years.

MultiversX is a bit of a UFO in the crypto universe, as it is the only major project coming from Eastern Europe.

multiversx elrond team principal

The mainnet of Elrond went online in the summer of 2020. Elrond is still a niche project, which only those in the know have heard of. Indeed, it tackles the problems of scalability of the blockchain, going further than the classic problem of scalability (ability to process many transactions and quickly). And as mentioned above, at the end of 2022 the project takes a turn by renaming itself MultiversX and by attacking the metaverse, also ambition of the Meta group (ex Facebook) or The Sandbox ($SAND).

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How does the MultiversX blockchain ($EGLD) work?

The MultiversX validation consensus (EGLD)

Elrond is a Layer-1 blockchain, i.e. a runtime blockchain for the operation of decentralized applications and the validation of transactions. For the latter, it uses the consensus mechanism of the Proof of Stake.

However, unlike other blockchains, Elrond does not use the classic PoS, but the SPoS, the Secure Proof-of-Stake. Like classic PoS, SPoS requires validators to tie up a large amount of tokens, allowing them to validate transactions.

However, in SPoS consensus, the “rich” are not given a fair share and validators are chosen randomly through an ingenious scoring system. Thus, each transaction is validated, not by one of those who has immobilized the most tokens, but by the one who has been chosen by the system. It is therefore a theoretically impartial consensus.

We briefly mentioned it in the introduction. Sharding is the central element of the MultiversX protocol. In concrete terms, this means that it is broken down into several fragments or shards (in the language of Shakespeare).

Sharding, the central element of the MultiversX(EGLD) protocol

A team of validators is entrusted with the validation of transactions and the security of its fragment. This means that validators have fewer transactions in the queue and can validate faster. In addition, the fragments are interconnected with each other.

Once the transactions have been validated, they pass on the mainnet and are added to the Elrond blockchain. Sharding is a real progress that goes beyond scalability, cost reduction and speed of transactions. This is why we talk about scalability, with the obligation to interconnect fragments while maintaining the security and speed of a PoS consensus protocol.

gold is money, gold bar shop, gold-2430052.jpg

What is the purpose of the EGLD crypto-currency in the MultiversX project

EGLD is the native token of the Elrond protocol. It stands for Electronic Gold (eGold), but has no relation to the yellow metal.

Like any native token, EGLD has two functionalities. The first is to be the cornerstone of the network, allowing the payment of validators participating in the protocol. It powers the network by serving as a medium of exchange between users, developers and validators. The transaction fees are indeed paid in crypto EGLD by the first two, to the benefit of the validators.

Then, it is a governance token. EGLD holders can therefore propose improvements to the protocol and vote for other proposals.

Where to buy the EGLD cryptocurrency?

The EGLD token is available on all major exchange platforms. You can buy it on the Binance platform or on the Coinbase platform, as well as on the official website of MultiversX and on Xportal App

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What is MultiversX? •MultiversX is a distributed blockchain network for next-gen applications. Decentralized via 3,000+ nodes, scalable through sharding, fast, secure & green. •$EGLD is