Introduction
In the ever-evolving world of cryptocurrencies, MultiversX stands out because it is highly scalable and affordable smart contract platform.
This comprehensive guide will provide you with an in-depth understanding of MultiversX, indeed!!
I will tell you about its innovative features, at first. Then, its potential to shape the future of decentralized applications and digital economies.
The Birth of MultiversX
MultiversX, previously known as Elrond, was founded in 2017 by Lucian Todea, Beniamin Mincu, and Lucian Mincu.
The company embarked on a mission to create a blockchain network that could compete with giants like Ethereum and Zilliqa, at first and foremost.
Surely, MultiversX aimed to build a robust ecosystem of decentralized applications and cryptocurrencies.
To be honest, what will I prove in next paragraphs it was happen, in general.
Transformation into MultiversX
In November 2022, MultiversX underwent a significant transformation and rebranded itself to reflect its new direction towards metaverse development, in fact. It was good move?
This strategic shift led to the launch of three groundbreaking metaverse-based products: xFabric, xPortal, and xWorlds as a matter of fact.
I would say it was great move, because metaverse is without a doubt technology of our future.
Blockchain Infrastructure
Let me explain it one more time.
Firstly, xFabric is a customizable blockchain infrastructure that allows external developers to easily deploy and build upon the MultiversX network.
It provides a solid foundation for the development of innovative metaverse worlds and applications, but it is not all.
A Gateway to the Metaverse
Secondly, xPortal is a versatile application that serves as a gateway to the MultiversX metaverse.
It offers a range of functionalities, in reality.
Including avatar storage, cryptocurrency management, NFT support, and even a crypto-fiat debit card, so things are taken really seriously. Users can connect with friends, participate in asset swaps, and then manage their digital assets seamlessly.
Unleash Your Creativity
Finally, xWorlds is the engine that empowers developers and gamers to create their own immersive digital worlds within the MultiversX ecosystem. Besides, this groundbreaking feature allows users to unleash their creativity and build unique experiences.
Further that push the boundaries of what is possible in the metaverse.
Unique Features of MultiversX
Indeed, MultiversX sets itself apart from other blockchain platforms through two key features.
First one is Adaptive State Sharding and second is Secure Proof-of-Stake (SPoS).
Adaptive State Sharding
Sharding is a process that involves splitting the blockchain network into smaller pieces, or shards, to increase its capacity and scalability. Exactly, MultiversX takes sharding to the next level with Adaptive State Sharding.
This innovative approach ensures that nodes only process a fraction of the network’s transactions, significantly boosting transaction throughput.
To prevent collusion among validators, MultiversX employs a mechanism where one-third of the nodes validating transactions in each shard move to a new shard every 24 hours. This constant reshuffling enhances network security and decentralization.
Secure Proof-of-Stake (SPoS)
Basically, MultiversX utilizes a consensus mechanism called Secure Proof-of-Stake (SPoS) to keep its distributed network of computers in sync.
SPoS enables validators to secure the network, also validate transactions, and earn rewards in the form of newly minted EGLD tokens.
Unlike traditional proof-of-stake mechanisms, MultiversX selects validating nodes from shards instead of the entire network.
This approach ensures faster block production and final settlement of transactions, so the platform is efficient and secure.
MultiversX’s Native Token EGLD
Of course, EGLD, the native cryptocurrency of MultiversX, plays a crucial role within the ecosystem. Because it facilitates asset transfers, incentivizes network contributors, and powers the execution of smart contracts.
So, next step is to take a closer look at the value and utility of EGLD.
Network Governance and Voting
By owning and staking EGLD, users gain the ability to vote on network upgrades and proposals. This democratic governance model ensures that the MultiversX community has a voice in shaping the platform’s future.
Staking and Rewards
Staking EGLD not only supports the security and stability of the MultiversX network but also allows users to earn rewards. Stakers receive newly minted EGLD tokens in proportion to the amount they have staked. This incentivizes token holders to actively participate in the network and contribute to its growth.
Smart Contract Royalties
MultiversX stands out by sharing 30% of the transaction fees with the authors of smart contracts. This unique feature, known as “smart contract royalties,” incentivizes developers to create innovative and valuable applications on the MultiversX platform, fostering a vibrant ecosystem.
Community Rewards
MultiversX allocates 10% of all transaction fees to reward community participants. These rewards are distributed through special events, bounty projects, and network development initiatives. This approach encourages active engagement within the community and ensures that contributors are recognized and rewarded for their efforts.
Limited Supply
Similar to many cryptocurrencies, the supply of EGLD is limited. According to the software’s rules, there will only ever be 20 million EGLD tokens, creating scarcity and potential long-term value for holders.
MultiversX Ecosystem
There’s a lot going on in the Multiversx ecosystem.
All this thanks to the creation of an innovative platform and many partnerships. This doesn’t surprise me at all.
Please look at the graphic.
First of all, the graphics themselves were taken from the official website of the project, without a doubt. Obviously, the operating strategy and attractiveness of the platform’s services are huge.
Apart from that, such a great innovation, undoubtedly. I should write that it’s the first platform to use AI to create virtual worlds, and then the possibilities here are endless.
There is no shortage of key players in the DeFi sector such as Exrond, Celest, PancakeSwap and TradingView. What’s next…
Stablecoins… No problem. They Are in the project, also.
Metaverse and gramming – there is a lot to write here, since many partners.
Or maybe a startup for other entrepreneurs or a wallet to store cryptocurrency, but nothing is missing here.
Due to the all facts – the ecosystem has many strengths and it is difficult to find the weak ones.
Indeed, what more can you expect from a Smart Contract platform?
MultiversX Price in Depth
MultiversX is a platform that has come a long way. Listing on stock exchanges is October 2020.
The boom on the cryptocurrency market was already in full swing, but it was before the mega boom of 2021.
Anyone who was on the market knows what was happening on the market. Then a bear market and now we have a bull market.
1st Bull Market
Now we’ll begin! The cost of stripping is $17.59 per unit. A bit much, but is it really?
If you look at the fact that the project is very well documented, has high technical performance and, most importantly, is developing dynamically… You can even say that it is a low price. Even in the world of cryptocurrencies.
Alright.
However, I will return to the interpretation of prices during a bull market.
In October 2020, the platform was listed on stock exchanges, and in January 2021, the first mini boom took place. By this I mean before the gunshot in July 2021.
The price reaches almost $240 per unit within half a year. But that’s not the end.
Then there is a decline until the end of June 2021 and a price recovery again. This time much more dynamic! The price after correction hits a new high of $545 per unit!
Let me just remind you that the bottom after the correction was close to $60. After breaking out again, the price increases 9 times.
1st Bear Market
The end of November 2021 and cold time on the market. Prices then drop really hard.
The trick is to evacuate the market before the peak or immediately after reaching it. But in the latter case, psychology works to our detriment.
Then we always look for a correction and a return of the price to the upward trend. Meanwhile, the price continues to drop with local increases.
Overall, this is a downward trend typical of a bear market.
Interestingly, the price is in decline for 2 years until mid-October 2023. Is this a sign of design weakness? I don’t know, but usually good and mature projects recover after a year. But…
Muliversx is a young project.
Startup + innovative sector + toxic investors = strange pricing behavior on the market. Unfortunately, we have to accept reality as it is.
In my opinion, 2 years is a long time. The price lands at $22 per unit. It’s time for the bull market to return. I guess it’s high time.
2nd Bull Market
Alright. It’s time to write something about the current boom.
In December 2023, the price reached its local peak at around $73, but it is still far from the so-called All Time High (ATH).
In the previous bull market, it peaked at $545.
Then a one-month price correction at the beginning of 2024 and another upward trend.
This time, in mid-March 2024, the price reaches $75 per unit. A $2 jump higher at the next local high is a good sign of adoption and investor confidence in the platform. That’s my opinion…
We are currently in a correction, but it is near its end.
Bitcoin halving in mid-April will also act as a capital boost on the market.
Additionally, improving economic data from around the world will attract even more investors to the cryptocurrency market.
Inflation is falling, economic conditions are improving, and interest rates are staying the same.
This is a favorable time for investing and taking risks. The cryptocurrency market should feel this.
A Catalyst for Innovation
MultiversX’s advanced technology and comprehensive ecosystem make it an ideal platform for developers and entrepreneurs looking to build innovative applications and digital economies.
The following sections will explore the technical aspects and potential use cases of MultiversX.
MultiversX Technology
Obviously, MultiversX provides developers with the infrastructure they need to build and deploy applications at scale. The platform boasts impressive technical features like Native Assets, Safest User Experience. Futher, Developer Royalties, Adaptive State Sharding, Security Proof Stake and finally, WASM-based Virtual Machine. I will explain all those features, because it is necessary.
Native Assets
MultiversX supports the creation and management of native assets, enabling developers to tokenize various digital and physical assets.
Safest User Experience
MultiversX prioritizes user security by implementing on-chain 2FA, making it incredibly difficult for malicious actors to compromise user accounts.
Developer Royalties
Developers on MultiversX receive 30% of the gas fee every time someone interacts with their smart contracts, providing them with a constant stream of income.
Adaptive State Sharding
MultiversX’s adaptive state sharding enables the network to process a remarkable 263,000 transactions per second, so thath ensuring scalability without sacrificing security.
Secure Proof of Stake
The platform’s energy-efficient consensus mechanism, Secure Proof of Stake, ensures the security and integrity of the network while minimizing its environmental impact.
WASM-based Virtual Machine
MultiversX allows developers to write smart contracts in familiar programming languages and run them through a fast and efficient virtual machine.
Use Cases and Potential Applications
MultiversX’s versatility and scalability make it suitable for a wide range of applications. Some potential use cases include:
Decentralized Finance (DeFi)
MultiversX provides a robust foundation for building decentralized finance applications, such as lending platforms, decentralized exchanges, and yield farming protocols.
Non-Fungible Tokens (NFTs)
In fact, the platform’s native support for NFTs enables the creation and trading of unique digital assets. It is giving a power to creators and also collectors within the Metaverse. Is it not great at all? Be honest, at least.
Gaming and Virtual Reality
MultiversX’s metaverse-oriented products, such as xPortal and xWorlds. They are certainly open up exciting possibilities for immersive gaming experiences and virtual reality applications.
Supply Chain and Logistics
The platform’s scalability and security make it an ideal solution for building transparent and efficient supply chain management systems, surely.
Identity and Authentication
Finally, MultiversX’s on-chain 2FA and secure infrastructure can be leveraged to create robust identity verification and authentication solutions.
Conclusion
Without a doubt, MultiversX has emerged as a formidable player in the world of cryptocurrencies and blockchain technology.
With its innovative features, such as Adaptive State Sharding and Secure Proof-of-Stake, MultiversX offers a scalable, secure, and developer-friendly platform.
Decentralized applications and digital economies are easier to create, as well.
Overall, as the metaverse gains prominence, MultiversX’s transformation and focus on metaverse development position it at the forefront of this emerging industry.
