The blockchain market is experiencing significant growth due to the increasing number of users and the approval of Bitcoin ETFs. This growth has highlighted the importance of scalability solutions like MultiversX, which uses adaptive sharding to improve performance while maintaining user experience and security.
The blockchain ecosystem is poised for renewed growth, driven by the influx of new users. Since the Bitcoin halving in 2020, the blockchain tech market has grown from $4.19 billion to $19.36 billion in 2023, with the next halving scheduled for April 2024.
Analysts predict that the success story of 2024 will be driven by the expansion of the user base, fueled by the crypto market explosion following the approval of Bitcoin ETFs. If bullish market conditions continue, global crypto users could increase by 50% in one year and reach 900 million by 2024.
Considering that only 3.9% of the global population currently uses blockchain, continued growth in the sector is inevitable. This is where blockchain scalability becomes crucial.
MultiversX is a distributed blockchain network designed for next-generation applications that scales according to demand, allowing for expansion without impacting the user experience. The platform aims to adapt to the expected influx of new participants in the blockchain space and enable the system to handle increased load without sacrificing performance or increasing fees.
Traditional blockchain protocols often struggle with scalability, resulting in high fees and slow transaction speeds during periods of high user demand. MultiversX addresses this scalability challenge by implementing adaptive state sharding, which allows the network to scale dynamically.
Sharding involves dividing the blockchain network into smaller pieces, each capable of processing transactions independently. MultiversX takes sharding technology a step further by implementing various types of sharding, such as network sharding, transaction sharding, and state sharding. These different sharding methods distribute the workload across the network, increasing scalability on a case-by-case basis while maintaining decentralization principles.
In addition to scalability, MultiversX places significant importance on security, especially with the arrival of new users in the blockchain space. The protocol implements a two-factor authentication (2FA) solution called Guardians, which adds an extra layer of security to traditional wallet protections. This feature ensures the safety of user funds even if private keys are compromised, providing protection at all times.
MultiversX aims to empower enterprises and institutions and support demanding use cases. Developers can deploy customized blockchain solutions using Sovereign Shards, which are independent but interconnected shards within the MultiversX network. These shards operate similarly to application-specific blockchains but benefit from trustless interoperability and a unified user experience across the MultiversX ecosystem.
To further enhance its performance, MultiversX is planning several major network upgrades this year. These upgrades will increase its transactions per second (TPS) capacity by 3 to 6 times through optimistic aggregation, early block proposals, equivalent proofs, and changes to the consensus. The core development team is also focused on expanding the ecosystem and organizing initiatives for builders, such as hackathons and demo days, while increasing its presence worldwide through local meetups and large blockchain and tech conferences.
MultiversX aims to improve blockchain performance and efficiency to facilitate the next phase of growth in the Web3 space. The company’s CEO, Beniamin Mincu, stated that their goal is to propose solutions that address pressing issues not only in Web3 but also in the financial system, gaming, music, art, and entertainment sectors.