EGLD: The Future of Blockchain Scalability

What is EGLD?

EGLD, originally known as eGold, is the native cryptocurrency of the MultiversX blockchain (formerly Elrond). This blockchain platform is designed to support highly scalable and fast decentralized applications (dApps) and enterprise use cases. MultiversX differentiates itself through its adaptive state sharding technology and secure proof of stake (SPoS) consensus mechanism, both of which aim to enhance network throughput and security.

MultiversX’s Unique Architecture

The architecture of the MultiversX network consists of a technology called "adaptive state sharding." Sharding involves breaking the blockchain into smaller, more manageable pieces—known as shards—in order to increase its transaction speed. This method allows the network to achieve more than 15,000 transactions per second in theory, with minimal latency. For comparison, many older blockchains such as Ethereum currently operate at a fraction of that speed.

Another notable feature of the network is its secure proof of stake (SPoS) consensus. This mechanism allows validators to stake their EGLD tokens to secure the network, propose new blocks, and maintain network consensus. In return, participants who stake their tokens are incentivized through a rewards structure, which consists of newly minted tokens and transaction fees.

Utility and Use Cases of EGLD

EGLD powers the MultiversX ecosystem in various ways. Apart from staking, EGLD is used to pay for transaction fees throughout the network. Additionally, developers building dApps on the platform can pay using EGLD for deploying and sustaining their applications. EGLD might also serve as a governance token in certain future scenarios, allowing holders to vote on key proposals related to the future development of the ecosystem.

The MultiversX blockchain is attempting to build bridges not just within its ecosystem but also to other notable chains (such as Ethereum), allowing easier cross-chain swaps and fostering interoperability. The developers have integrated tools for creating and managing decentralized finance (DeFi) applications and non-fungible tokens (NFTs), further broadening the potential use cases for EGLD.

Staking EGLD

Staking in the MultiversX network allows users to participate in network validation and governance. Participants can either run a validator node if they meet the token requirement or delegate their tokens to a validator. Validators are rewarded in EGLD, but slashing mechanisms are also in place to penalize malicious actors.

The evolution of MultiversX continues to attract developers and investors looking for scalable blockchain solutions. However, its long-term viability will depend on broader adoption and the scalability of its technology.