Key Takeaways
- MultiversX is a blockchain that handles many more transactions per second than most existing blockchains.
- MultiversX uses a Proof-of-Stake system to secure the network and keep it running smoothly. It also uses sharding to split the workload between different computers, which helps it scale and handle more transactions.
- EGLD is the cryptocurrency that powers MultiversX. It can be used for everything from paying transaction fees to voting on network changes.
What Is MultiversX (EGLD)?
MultiversX, previously known as Elrond, is a public blockchain platform designed to address the scalability limitations of traditional blockchains. It aims to be a highly scalable, secure, and efficient network for decentralized applications (dApps) and the new Internet economy. The project hopes to overcome existing blockchain technologies’ limitations and create the growth of a decentralized future.
How Does MultiversX (EGLD) Work?
Built for scalability and efficiency, MultiversX (EGLD) is a blockchain platform designed to handle next-generation applications. Here’s a breakdown of how it works:
Secure Proof of Stake (SPoS)
Unlike conventional Proof of Work (PoW), which guzzles energy, MultiversX relies on a variation of Proof of Stake (PoS) called Secure Proof of Stake (SPoS) to secure its network. With SPoS, validators are chosen randomly to validate transactions and secure the network. This randomness helps prevent bias and strengthens security. Users can stake their EGLD tokens to become validators and earn rewards.
Sharding For Scalability
MultiversX utilizes a technique called sharding to handle a large volume of transactions that are split into smaller, more manageable sections. Validators are then assigned to validate transactions on specific shards, improving efficiency.
MultiversX (EGLD) Token And Tokenomics
Tokenomics
The EGLD token is MultiversX’s native cryptocurrency. It is used for:
- Transaction Fees
- Staking
- Governance
- Access to the MultiverX ecosystem
Token Details
Total Supply: 31,415,926 EGLD
Circulating Supply: 27,684,759 EGLD
Current Price: $57.34
Market Capitalization: $1,587,086,686
This information is current as of December 5, 2024, and the token’s price, market value, and available supply may fluctuate.
Distribution
- Public Sale (25%)
- Private Sale (19%)
- Team (19%)
- Advisors (2.5%)
- Company Reserve (17%)
- Incentives (7%)
- Grants, Accelerator Pool (8.5%)
- Community Fund (2%)
Where Can I Buy MultiversX (EGLD)?
Binance – Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
Coinbase – Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.
Is MultiversX (EGLD) A Good Investment?
Pros
- High Scalability And Speed – MultiversX boasts fast transaction processing times (around 6 seconds) and low transaction fees (under $0.02). This is thanks to its sharding technology, which allows the network to handle a high volume of transactions per second (TPS), exceeding 100,000, according to their claims.
- Energy Efficiency – MultiversX’s Secure proof-of-stake consensus mechanism is energy-efficient compared to proof-of-work blockchains like Bitcoin.
- Expanding Ecosystem – The MultiversX ecosystem is growing and attracting various DeFi applications, NFTs, and other projects.
Cons
- New Tech, Unproven Security – A key concept of MultiversX is adaptive state sharding, which allows for high scalability. However, this technology is relatively new, and its long-term security remains untested.
- Centralization Concerns – The development team controls many EGLD tokens, MultiversX’s cryptocurrency.
- Limited Adoption – MultiversX has a smaller user base and lower total value locked (TVL), a metric indicating the value of cryptocurrency locked in DeFi protocols.
Final Thoughts
Whether MultiversX (EGLD) is a good investment depends on your risk tolerance and goals. Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.
