About MultiversX (EGLD)

MultiversX Frequently Asked Questions (FAQ)

What is the purpose of sharding in the MultiversX blockchain network?


The purpose of sharding in the MultiversX blockchain network is to enhance scalability and increase transaction throughput. By dividing the network into smaller, manageable pieces called shards, each shard processes a portion of the network's transactions in parallel, leading to greater efficiency and the ability to handle more transactions per second without compromising security or decentralization.




How is the EGLD token used within the MultiversX ecosystem?


The EGLD token is the native cryptocurrency of the MultiversX ecosystem, used for transaction fees, staking to secure the network, deploying smart contracts, and participating in on-chain governance. It also functions as a medium of exchange within the ecosystem and is integral to the platform's DeFi, NFT, and DApp operations.




What are the incentives for validators participating in the MultiversX network?


Validators in the MultiversX network are incentivized with rewards for maintaining network security and processing transactions. These rewards typically come from transaction fees and block rewards generated by the protocol.




When was the MultiversX mainnet officially launched?


The MultiversX mainnet, originally known as Elrond, was officially launched on July 30, 2020.




Who were the primary founders of MultiversX and what are their backgrounds?


MultiversX, formerly known as Elrond, was co-founded by Beniamin and Lucian Mincu along with Lucian Todea. Beniamin Mincu has a background in technology and entrepreneurship, having been involved with the NEM core team. Lucian Mincu has expertise in infrastructure and security, while Lucian Todea is an experienced entrepreneur and angel investor.




What distinguishes MultiversX from other blockchain platforms?


MultiversX, formerly known as Elrond, stands out due to its unique Adaptive State Sharding mechanism and Secure Proof of Stake (SPoS) consensus, which allow for high scalability, fast transaction speeds, and low costs. It also features a developer-friendly environment with tools like the Elrond Integrated Development Environment (IDE) and supports the creation of secure smart contracts using a formally verified smart contract language.




In what ways does the Adaptive State Sharding mechanism benefit the MultiversX network?


The Adaptive State Sharding mechanism improves the MultiversX network by enhancing scalability and throughput. It allows the network to dynamically adjust to workload changes and to process transactions faster by partitioning the network into multiple shards that work in parallel. This technique also contributes to increased security, as it spreads the network's state across these shards, making it more difficult for malicious actors to compromise. Additionally, the sharding approach helps achieve a balance between decentralization, security, and efficiency by optimizing resource usage and processing capabilities.




What is the role of the Metachain in MultiversX's architecture?


In MultiversX's architecture, the Metachain acts as a central blockchain that oversees the network's interoperability and security. It manages the validation of blocks, cross-shard transactions, and the registry of validators, ensuring efficient communication and coordination across the different shards of the platform.




How can developers earn royalties through the MultiversX platform?


Developers can earn royalties on the MultiversX platform by deploying smart contracts that include royalty mechanisms. When a digital asset or NFT created using their smart contract is sold, a percentage of the sale price can be automatically paid to the developer as a royalty fee. This encourages the continuous development and maintenance of quality apps and services within the MultiversX ecosystem.




What is the maximum supply of EGLD tokens that can exist?


The maximum supply of EGLD tokens is set at 31.4 million.




What was the initial distribution strategy for EGLD tokens?


The initial distribution strategy for EGLD tokens, originally ERD, involved a public sale, launchpad sale through Binance, private sale, and allocations for community rewards, team, advisors, and the Elrond ecosystem. A large portion was also reserved for staking rewards to incentivize network security and participation.




How does the Secure Proof of Stake consensus mechanism protect the MultiversX network?


The Secure Proof of Stake (SPoS) consensus mechanism protects the MultiversX network by combining randomness with a stake-weighted selection process for validating blocks. Validators are chosen based on their stake and rating score, ensuring decentralization and security. Additionally, SPoS minimizes energy consumption compared to Proof of Work and enables fast, secure transactions by using random validators for each block without the need for them to compete by using computational power.