The growth of the blockchain market, fueled by the user influx and approval of Bitcoin ETFs, is increasing the importance of scalability solutions such as MultiversX. The platform uses adaptive sharding to improve performance without compromising user experience or security.
The blockchain ecosystem is poised for refreshed growth driven by the influx of new users. Since the Bitcoin halving in 2020, the blockchain tech market has increased from $4.19 billion to $19.36 billion in 2023, and the next halving is slated for April 2024.
The success story of 2024 is expected to be written by the user base expansion fueled by the crypto market explosion following the approval of Bitcoin ETFs. According to analysts, if bullish market conditions persist, global crypto users could jump by 50% in a year and rise to 900 million in 2024.
Since only 3.9% of the global population is estimated to use blockchain, continued growth in the sector is inevitable. This is where blockchain scalability becomes critical.
Adaptive sharding for scalable blockchain
A distributed blockchain network designed for next-generation applications, MultiversX, scales according to demand, making it possible to expand without affecting 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 the increased load without losing performance or seeing fees increase.
The lack of scalability, often considered the Achilles heel of traditional blockchain protocols, results in high fees and low transaction speeds whenever a significant increase is experienced in user demand. MultiversX addresses the need for scalability challenges by using adaptive state sharding, which allows the network to scale dynamically.
Offering adaptive state sharding for scalability, MultiversX uses the energy-efficient consensus mechanism called Secure Proof of Stake.
Sharding is a method of dividing the blockchain network into smaller pieces, each of which can process transactions independently. MultiversX takes sharding technology one step further, implementing all its types, such as network sharding, transaction sharding and state sharding. Different sharding methods that increase scalability on a case-by-case basis spread the workload across the network while preserving the principle of decentralization.
2FA for mainstream adoption
Security has become critical with the arrival of new users in the blockchain space, an area on which MultiversX places significant importance. The protocol implements a two-factor authentication (2FA) solution that adds a unique layer of security on top of the traditional protections provided by wallets to increase users’ security. Known as the Guardians feature, it further reinforces security, safeguarding user funds even when private keys are compromised and protecting them at all times, even when mistakes are made - almost inevitable in the journey of a Web3 user.
MultiversX’s goals include developing an environment that will empower enterprises and institutions and support highly demanding use cases. Developers can deploy customized blockchain solutions using Sovereign Shards—independent but seamlessly interconnected shards within the MultiversX network. These pieces operate similarly to application-specific blockchains but benefit from trustless interoperability and unified user experience across the MultiversX ecosystem.
Sovereign Shards are independent shards built on top of the MultiversX blockchain.
Focusing primarily on scalability, user safety, and developer flexibility, MultiversX is reportedly set to undergo several major network upgrades this year that will improve its transactions per second (TPS) capacity by 3 to 6 times via optimistic aggregation, early block proposals, equivalent proofs, and changes around the consensus. The core development team is also focused on accelerating the ecosystem expansion and organizing different initiatives for builders, such as hackathons and demo days while having an increased presence worldwide through local meetups and large blockchain and tech conferences.
Blockchain impact on sectors
Working to improve blockchain performance and efficiency, MultiversX wants to facilitate the next growth phase of the Web3 space.
“The end goal was always to propose solutions that resolve pressing issues, not just for Web3, but for the financial system, gaming, music, art and entertainment,” said MultiversX CEO Beniamin Mincu, adding:
Learn more about MultiversX“Solutions with superior performance, greater security, and a better user experience will enable blockchain technology to create impact across sectors, industries and businesses, bringing important value for users, enterprises and the private sector.”
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