MultiversX (previously Elrond) updated their white paper last week to reflect its Metaverse orientation.
It is considered to be one of the most scalable chains out there.
Here is WHY ⬇️
The current state of public blockchain tech exhibits severe scalability limitations.
In order to solve this, a complete rethinking of public blockchain infrastructures is required.
Introducing #MultiversX - a revolutionary solution designed to address these challenges.
In order to solve the scalability problem, several challenges must be addressed:
• Full decentralization
• Robust security
• High scalability
• Efficiency
• Bootstrapping and storage enhancement
• Efficiency
• Cross-chain interoperability
How the team at #MultiversX wants to tackle these challenges?
According to their white paper, they aim to solve it via 2 key cornerstone building blocks.
1) A genuine State Sharding approach
2) Secure Proof of Stake consensus mechanism
They introduce dynamic adaptive sharding mechanism that enables:
• computation & reorganization based on network needs
• binary tree address space division
• node balancing, automatic txs routing
• shard pruning for improved efficiency & sustainability at high TPS
Their PoS consensus mechanism reduces latency by allowing each node to determine consensus group members at the beginning of a round.
It improves upon traditional PoS by adding a weight factor called 'rating' for consensus group selection.
This all sounds a bit complex, doesn't it?
Indeed - but when you check out their team, you will understand.
Entrepreneurs, tech veterans from MSFT, Google, Intel, plus PhDs in CS and AI, Olympiad champs, and a former NEM core member.
Lead by brilliant mind @beniaminmincu.
They recently made a bold move. Total rebranding.
Why?
They want to reflect its Metaverse orientation.
And I personally believe they want to improve their brand's perception & become a global brand.
There is much more to it. I will leave you to do a deeper research on it.
But think about it.
While you have chains that provide tools & space for dApps to build and users to come, #MultiversX is building the key parts of its eco by themselves.
Interesting approach.
Introducing the new suite of tools from #MultiversX coming in 2023:
• xFabric is a sovereign blockchain module
• xPortal is the metaverse portal
• xWorlds is a network of interoperable metaverses
Enabling creators, developers, and users.
Or that is the goal.
Let's jump into Investors & Tokenomics part.
Acording to Dealroom, #MultiversX received only $2M in funding from VCs (% n/a).
Binance Labs supported them from its beginning. As far as I know, they have always had a warm relationship with Binance.
Elrond's early token distribution issued 20 billion ERD in Jul. 2019.
Following mainnet launch in Jul. 2020, Elrond implemented a new monetary policy and reduced token supply by 1000x to 20 million.
The native token's name is $EGLD.
What I find fascinating about $EGLD is its tokenomics.
$EGLD guaranteed reward decreases annually. By the eleventh year after mainnet launch, inflation should be ZERO.
To pay validators over the next decade, Elrond must organically grow its fee market.
$EGLD max supply is 31.4M with 24M in circulation according to CMC.
I highly recommend reading their tokenomics.
I did it in 2021 and I still find it fascinating.
I assume the tokenomics part did not interest only me, but also plenty of validators.
As of right now, #MultiversX has 3129/3200 active validators, 15M $EGLD staked, and 2M wallets in total created.
In terms of the whole ecosystem activities, I'll let you be the judge.
But don't tell me it's not robust and focused on hyper growth—that would be a lie.
In terms of DeFi, their ecosystem is still in its infancy with TVL currently ≈93M.
During the last bull run they managed to achieve TVL > $2B. Primarily via its own DEX called xExchange with their native $MEX token.
#MultiversX has a market cap right now ≈$965M.
And according to CMC, it is the #46 coin.
Can MultiversX compete in the category "the most scalable chains"?
I think it can!
Here's why:
1. Unique technology & high scalability
2. Unique ecosystem
3. Brilliant team of researchers
Let me explain.
Unique technology & high scalability
I am not saying #MultiversX tech is the fastest or has the fastest finality.
I am saying one - it can scale.
Plus, in the past they recorded TPS of 250K+ in their testnet.
As of now, they achieve daily ≈15K TPS.
Unique ecosystem
Although MultiversX appears to be lagging in terms of ecosystem activities in comparison to other L1s, I think we will see in 2023/2024 rapid growth in this area.
Once it clicks, it might skyrocket.
DYOR. I suggest starting with their acquisitions.
Brilliant team of researchers.
I already mentioned this at the beginning of the thread. The team is brilliant in my opinion.
Not only that, they are flexible. They don't like something? They spend days and nights to change it.
I respect this attitude and believe in it.
A good recent thread by @Justin_Bons on $EGLD governance is also worth reading.
twitter.com/Justin_Bons/status/1613957572221861888?s=20&t=rjpwio9-2PiuG6-SVXRqeA
That's all for today! I know I did not cover everything. If you want to keep up with $EGLD, I suggest following these accounts:
- @MultiversXToday
- @ElrondWarriors
- @lucianmincu
- @luciantodea
- @EGLD_Community
- @the_economystic
- @PodcastElrond
- @The_Scientist_Y
And if you are eager to read more about another L1s, check out my thread on $KDA from yesterday 😊
Tomorrow I will look into @archethic $UCO - you might know this one.
Talk to you soon.
twitter.com/CharlieXDeFi/status/1613958000187936768?s=20&t=rjpwio9-2PiuG6-SVXRqeA