News - MultiversX (EGLD): A rising star in the metaverse sky?

By Mike Hesp

MultiversX (EGLD): A rising star in the metaverse sky?

Does MultiversX have what it takes to conquer the metaverse sector?

MultiversX (EGLD), also known as Elrond among crypto enthusiasts, is a highly scalable layer 1 blockchain. The crypto project's goal is to capture the metaverse, among other things. The project is receiving support from China. Earlier this year, MultiversX partnered with technology giant Tencent. Will this be enough to win over the struggling metaverse sector and attract investors?

MultiversX aims high

According to the whitepaper the project's goal is to use a sharding scheme and a consensus mechanism called Secure Proof of Stake to create a decentralized network environment that is fast and properly scalable. Even more than that: as MultiversX further explains, it is even possible to achieve better transaction throughput than Visa. MultiversX aims to chase nothing less than 10,000 transactions per second through the blockchain with a latency of five seconds.

The network wants to take into account all major cornerstones:

  • Full decentralization

  • Robust security

  • High scalability

  • Efficiency

  • Bootstrapping and memory expansion

  • Interoperability between chains

In short: MultiversX aims to achieve everything that established blockchains have so far failed to do.

eGold (EGLD): a token on which the network runs

The entire ecosystem of MultiversX revolves around the eGold token (EGLD). Users can use the token to transfer values and assets, as well as interact with smart contracts or even creating new tokens. On the opposite side, it provides opportunities to earn EGLD by securing the network in the role of validator.

As for tokenomics, the maximum stock is set at EGLD 31.4 million. 20 million of these have already been spent at the start of the project. The remaining 11.4 million EGLD will be issued gradually over the course of ten years. We are therefore dealing here with controlled inflation that will eventually come to an end.

It should be noted that this inflation is always adjusted for total transaction costs. The goal is to artificially create digital scarcity. Provided usage increases, this in turn can also lead to increases in value.

Coming soon: xWorlds

The blockchain project plans to launch xWorlds in the near future. This will be the ecosystem's first metaverse project. More precisely, it is a network of interoperable metaverse.

It is quite possible that much will depend on the success or failure of this project. If MultiversX succeeds in setting new standards here, it may bite into the metaverse's existing innovation gap.

A blockchain project in motion

If you follow the official roadmap, you have to admit that the team is constantly expanding the ecosystem. Not only is the release of xWorld's Metaverse planned for this year, but also the xFabric blockchain module and a dedicated launchpad for new projects.

It is important for (potential) investors to keep a close eye on whether these goals are met. If MulitverseX succeeds in meeting its goals, this could have a positive impact on the MultiverseX price.

But whether the Metaverse concept is as promising as it was celebrated two years ago is another matter. Projects like The Sandbox or Decentraland face enormous challenges. The fact is: there is still much to do here.

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