What is MultiversX (EGLD)?

In the world of blockchain, the quest for speed, security, and low costs is akin to searching for the “Holy Grail.” For users who have long struggled with Ethereum’s high transaction fees and network congestion, MultiversX (formerly Elrond) emerged like an oasis in the desert. But is this project merely a rebranding exercise, or is it truly poised to become the backbone of the digital economy?

In this guide, we will cut through the technical jargon to explore what MultiversX (EGLD) is, how it works, and why it is being hailed as the “internet-scale blockchain.”

What is MultiversX (EGLD)? The Core Definition

At its simplest, MultiversX is a highly scalable, secure, and lightning-fast blockchain network capable of processing thousands of transactions per second. Its native cryptocurrency is EGLD (Electronic Gold).

However, what sets it apart is its vision. MultiversX isn’t designed solely for financial transfers; it is engineered to form the underlying infrastructure for the Metaverse, Web3 applications, and the new internet economy. Formerly known as “Elrond,” the project underwent a massive brand transformation in late 2022, renaming itself “MultiversX” to underscore its commitment to the Metaverse frontier.

Why is it Called an “Internet-Scale” Blockchain?

Traditional blockchain networks (such as Bitcoin or the legacy Ethereum architecture) often suffer from bottlenecks when too many users attempt to transact simultaneously. MultiversX was built specifically to solve this scalability trilemma.

Speed: While Bitcoin manages approximately 7 transactions per second (TPS) and Ethereum hovers around 15–20, MultiversX has demonstrated the ability to handle up to 100,000 TPS in test environments (maintaining a stable 15,000+ on the live network).
Cost: The fee to execute a transaction (Gas fee) is typically a fraction of a cent.
Energy: It is a carbon-negative blockchain, positioning itself as a leader in eco-friendly technology.

The Technology Behind MultiversX: How is it So Fast?

The secret to MultiversX’s performance lies in two unique architectural pillars. Let’s break them down into plain English.

1. Adaptive State Sharding

Think of a standard blockchain as a massive database. Traditionally, every computer (node) in the network must process all the data, which inevitably slows things down.

MultiversX utilizes a technology called Sharding. It splits the network into smaller, manageable pieces called “shards.”

The Analogy: Imagine a supermarket with only one checkout line where everyone has to wait (Traditional Blockchain). MultiversX, by contrast, automatically opens 10 new checkout lanes as the store gets busier. Each lane (shard) processes its own queue of customers, and at the end of the day, all lanes sync their data with the central office.

This “divide and conquer” strategy means that performance doesn’t degrade as the network grows; on the contrary, the more computers that join, the faster the network becomes.

2. Secure Proof of Stake (SPoS)

Bitcoin mining consumes vast amounts of electricity. MultiversX employs a Secure Proof of Stake (SPoS) mechanism. In this system, the validators securing the network do not solve complex mathematical puzzles; instead, they lock up (stake) EGLD tokens as collateral.

MultiversX’s SPoS is more advanced than standard Proof of Stake systems because it selects validators randomly and reshuffles them instantly. This randomness makes it mathematically impossible for malicious actors to predict which validator will be chosen next, effectively neutralizing potential attacks.

What is the EGLD Coin and What is its Utility?

The heartbeat of the project is EGLD. As the name “Electronic Gold” suggests, it aims to be a store of value with a scarce supply.

Capped Supply: EGLD has a theoretical maximum supply (targeted around 31.4 million), making it resistant to inflation.
Transaction Fees: Transfers and smart contract interactions on the network are paid for in EGLD.
Staking: Users can lock (stake) their EGLD to help secure the network, earning an Annual Percentage Rate (APR) in return.
Governance: EGLD holders can possess voting rights regarding the future direction of the network.

xPortal (Formerly Maiar): Making Crypto Accessible to Everyone

One of MultiversX’s most potent weapons is its user experience (UX). Cryptocurrency wallets are notoriously intimidating, often requiring users to manage long, complex strings of characters (e.g., 0x71C…).

xPortal, developed by the MultiversX team, solves this friction. It allows users to create a secure wallet paired with their phone number and send money using simple @herotags (usernames) instead of cryptographic addresses. This is a critical step toward mass adoption of Web3 technology.

The MultiversX Ecosystem and Future Vision

The answer to “What is MultiversX?” is no longer just a blockchain network; it is the construction of a digital nation. The ecosystem includes:

xFabric: A modular platform allowing anyone—even those without coding skills—to create their own blockchain applications.
xWorlds: An engine designed to take the Metaverse experience to the next level, enabling seamless interaction in virtual worlds.
Hatom, AshSwap, Holoride: Leading DeFi and entertainment projects built on the network. The partnership with Audi to create Holoride (an in-car VR entertainment system) is a prime example of the project’s real-world utility.

Pros and Cons

For every investor and tech enthusiast, it is crucial to look at both sides of the coin.

The Pros

High Scalability: One of the fastest networks in the industry.
Developer Friendly: Supports popular programming languages like Rust, C++, and TypeScript for smart contracts.
Strong Partnerships: Collaborations with Tencent Cloud, Google Cloud, and various European institutions.
User Experience: The xPortal app offers one of the most intuitive interfaces for the end-user.

The Cons

Competition: It faces stiff competition from giants like Solana, Aptos, Sui, and Ethereum Layer-2 solutions.
Centralization Debates: In the early stages, critics noted that a portion of validator nodes were controlled by the team (though the network is becoming increasingly distributed over time).
Ecosystem Size: While growing, the variety of dApps (decentralized applications) has not yet reached the volume seen on Ethereum or BSC.

Is MultiversX Worth the Investment?

MultiversX (EGLD) stands out as a project with the technology, team, and vision to remain a permanent fixture in the crypto world. Its rebranding to focus on the Metaverse and Web3 signals that it aims to be more than just a payment method; it wants to be the infrastructure provider for the future digital world.

If you believe that speed, low costs, and user-friendly interfaces are the future of blockchain, MultiversX is a project worth watching. However, like any crypto asset, EGLD is subject to market volatility. Conducting your own research (DYOR) is always the healthiest approach before investing.