EGLD: The Token Powering MultiversX and Decentralized Applications

EGLD: Everything You Need to Know

EGLD is the native token of MultiversX, a blockchain platform that aims to support large-scale decentralized applications (dApps) with high performance, scalability, and usability. MultiversX claims to offer the features of a real computer, such as operating system services, cloud storage, user authentication, and database management, on a distributed ledger. MultiversX also seeks to eliminate the transaction fees and latency issues that plague other blockchain platforms.

What is EGLD?

EGLD, or Electronic Gold, is the utility token that powers MultiversX. Its utility comprises all core network functionalities, such as staking, governance, transactions, smart contracts, and validator rewards. Users can transfer EGLD tokens to each other or use them to pay for dApp services. Users can also vote for block producers or propose changes to the network parameters using their EGLD tokens. Additionally, users can benefit from the inflationary nature of EGLD, as the total supply of EGLD increases by 5% annually, of which 4% goes to a worker proposal fund and 1% goes to block producers1.

EGLD is designed to be a self-amending cryptocurrency that can evolve and improve over time without the need for hard forks. Hard forks are when a community splits into two incompatible versions of the blockchain, which can cause confusion, disruption, and loss of value. MultiversX avoids hard forks by allowing its stakeholders to vote on proposals for protocol upgrades that have been put forward by MultiversX developers. This way, MultiversX can adopt new features and fix bugs without causing network disruption or fragmentation.

How does EGLD work?

EGLD works by providing a platform that facilitates the development and deployment of dApps on the blockchain. EGLD offers several features and services that make it attractive for dApp developers and users, such as:

Adaptive State Sharding: Adaptive State Sharding is a technique that allows the network to split into smaller units called shards, each with its own validators and transactions. This enables parallel processing and higher throughput than a single-chain system. The network can also dynamically adjust the number and size of shards according to the demand for network capacity.

Secure Proof-of-Stake: Secure Proof-of-Stake (SPoS) is a consensus mechanism that allows users to stake their EGLD tokens to become validators who secure the network and produce blocks. Validators are rewarded with newly minted EGLD tokens for their service, while users who delegate their tokens to validators share a portion of their rewards. SPoS enables faster and cheaper transactions than other consensus mechanisms, such as Proof-of-Work or Proof-of-Stake.

MultiversX VM: The MultiversX Virtual Machine (MVM) is a dedicated smart contract execution engine built on WebAssembly (WASM). Developers can write dApps in any programming language that can be compiled to WASM, such as C++, Rust, or Go. The MVM also supports formal verification, a technique that allows developers to verify the correctness and security of their code before deploying it on the network.

Inter-Blockchain Communication: Inter-blockchain communication is a protocol that allows different MultiversX-based blockchains to communicate and exchange data with each other. This enables cross-chain interoperability and scalability for dApps that span multiple blockchains.

Who is the team behind EGLD?

EGLD is developed by MultiversX Foundation, a non-profit organization based in Singapore. The MultiversX Foundation’s mission is to support the long-term development and growth of the MultiversX network and ecosystem. The MultiversX Foundation’s team consists of experts in various fields, such as engineering, research, governance, marketing, and community. Some of the key members of the MultiversX Foundation are:

Beniamin Mincu: He is the founder and CEO of the MultiversX Foundation. He is also the co-founder of MetaChain Capital, a digital asset investment fund, and ICO Market Data, an aggregator of information around initial coin offerings. He has a background in biochemistry and international business.

Lucian Mincu: He is the co-founder and CTO of the MultiversX Foundation. He is also the co-founder of MetaChain Capital and ICO Market Data. He has a background in computer science and security engineering.

Lucian Todea: He is an advisor to the MultiversX Foundation and an entrepreneur with experience in gaming, media, and e-commerce. He is also the founder of Soft32, a software review and download site, and a partner of mobilPay, a mobile payments application.

What are the use cases of EGLD?

EGLD aims to provide a blockchain platform that can support various use cases across different domains, such as:

Decentralized Governance: EGLD enables users to participate in the governance of the MultiversX network and its dApps by voting on proposals for protocol upgrades and network parameters. This way, EGLD empowers users to have a say in the direction and evolution of the platform.

Decentralized Finance: EGLD enables users to access various DeFi applications and protocols that offer financial products and services, such as lending, borrowing, trading, investing, saving, etc. Users can benefit from lower fees, higher efficiency, greater transparency, and more innovation compared to traditional finance.

Decentralized Art: EGLD enables users to create and trade non-fungible tokens (NFTs) that represent art, music, collectibles, and more. Users can benefit from more creativity, diversity, and ownership compared to centralized platforms.