What Is MultiversX (EGLD)?

About MultiversX (EGLD)

MultiversX, previously called Elrond, is a Layer-1 blockchain protocol the main goal of which is to provide a highly scalable, energy-efficient, and safe network. The project was rebranded in November 2022 and became MultiversX to reflect its new direction toward Metaverse development. Elrond’s projects were moved to the new ecosystem under new names (for instance, Elrond Wallet turned into the xWallet) and then the product range started to grow further.

The team’s mission is to create a seamless way of getting from the real world into the Metaverse allowing both to function at their highest capacity.

First of all, let’s discuss the MultivesX ecosystem. It might look a little overwhelming with this number of products but here are the most essential ones:

1. xExchange – a decentralized exchange that offers low-cost, fully automatic asset swapping.
2. xSpotlight – an NFT platform. It allows creators and NFT enthusiasts to connect, enjoy, and potentially buy digital art.
3. xLaunchpad – it funds startups that aim to build new blockchain-related communities.
4. xFabric – a customizable blockchain infrastructure that developers can easily deploy. It will underpin MultiversX's new Metaverse world starting in the third quarter of 2023. 
5. xPortal – a multi-purpose app that provides storage for avatars, cryptocurrency, and NFTs. Users can also swap supported crypto-assets, send and receive fiat payments, chat with friends, and manage a crypto-fiat debit card.
6. xWorlds – the engine for developers and gamers to create their immersive interoperable digital worlds. It will go live in the last quarter of this year.

The project elaborated on Algorand’s idea of a consensus mechanism that functions similarly to a lottery: it randomly chooses leaders to propose a block and committee members to vote on a block. However, MultiversX went further and came up with the technology thanks to which they lowered latency and enhanced security. They store a randomization factor in every block. This gives nodes an opportunity to choose the consensus group at the beginning of each round. By doing that they ensure that the control isn’t taken over by a group of nodes.

At the heart of this whole structure, there’s the ecosystem’s native coin EGLD. It has a lot of functions, namely, it’s used for transactions, smart contracts, staking, validators’ rewards, and governance. What’s more, authors of smart contracts receive “royalties”: 30% of the transaction fees are given to them. 10% of transaction fees are used to reward community members during special events. The circulating supply is 25.39 million coins.

Where did MultiversX (EGLD) come from?

Elrond was founded in 2017 by Lucian Todea, Beniamin and Lucian Mincu.The team is a mix of entrepreneurs and technical experts that definitely gives a good basis for project development. The company is based in Malta.

In 2019 the company was able to raise $1.9 million that was donated by various investors. In summer 2019 Elrond also raised $3.25 million during the Initial Exchange Offering (IEO), which cost the company 25% of its total token supply. The first version of the coin was also created back then. It was called the ERD coin. However, after the launch of the mainnet in 2020 the team decided to change the coin. Thus EGLD appeared. All the investors received a transitory period to exchange the initial coin to the latest one.

MultiversX has a devoted user community with almost 570,000 followers on Twitter alone. Their attitude seems to be overwhelmingly positive with encouraging comments and retweets of the posts with the project’s developments.

ERD coin was initially the cryptocurrency distributed by MultiversX. However, after the launch of its mainnet, the company altered its digital currency to EGLD coin. MultiversX then held an event to facilitate the transfer of its investors' ERD tokens to the new cryptocurrency.

What are the advantages of MultiversX (EGLD)?

1. Scalability. The advanced Sharding technology allows scalability beyond 100k transactions per second.
2. Affordability. The transaction cost currently is about $0.00188
3. Decentralization. There are 3,200 validator nodes, and the SPoS consensus mechanism ensures that no party takes over the control.
4. Development. The team invests in growing the ecosystem by offering tools, rewards and resources for developers to build decentralized applications on the platform.
5. Holders’ rewards. EGLD coin holders can lock up their assets and receive rewards for securing the network and supporting the operation of the protocol. 
6. Future plans. Lucian Mincu, MultiversX CEO, is actively interacting with politicians, for example, the project has connections with the Minister of Telecommunications of France with whom they are planning to create a European metaverse.

What are the disadvantages of MultiversX (EGLD)?

1. Comparatively small size. In May 2023, the total value locked on the platform was about $97 million, whereas other platforms with somewhat similar functionality are much larger: Ethereum with almost $28 billion, Algorand with $184 million, etc.
2. Initial delays. For a long time, auxiliary libraries for developers were not released, which significantly hampered the development of the ecosystem.
3. Early stages of development. At the moment, the ecosystem lacks strong and popular projects.

How to buy MultiversX (EGLD) on SimpleSwap?

If you have decided to become a part of the MultiversX community, you need to purchase EGLD. SimpleSwap is happy to help you with it! Just follow our simple instructions below:

1. For example, you want to swap BTC for EGLD. Select the currency you want to exchange (e.g. BTC) in the first drop-downlist. Then enter the amount you want to swap.
2. Select EGLD in the second drop-down list. You’ll see the estimated amount that you’ll get after the exchange.
3. Click the Exchange button.
4. Enter the Recipient's Address. EGLD will be sent. Be careful and make sure you use the correct address.
5. Create the exchange.
6. You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the BTC to EGLD exchange.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.