MultiversX Review 2024 Edition - An Underrated, Sharded & Scalable Blockchain with Some Imperfections
This post highlights the goods & the improvements needed for MultiversX to be one of the top blockchains.
The Good Things:
1. Secure Proof of Stake & Adaptive State Sharding
I like sharded blockchains. It may feel complicated to design but it’s one of the proper way to scale a blockchain to millions of users without significantly increasing hardware resources.
It’s like designing an EV to increase its driving range. The most straightforward way to increase driving range is by enlarging its battery capacity, but you can also optimize the energy consumption by using more efficient motors, use lighter materials, managing battery & motor temperatures, design vehicle bodies that reduces drag, use suitable tyres, etc to increase its range without increasing battery capacity. Sharded blockchains feel that way to me, and MultiversX is one of the chains that already did this.
The simplest way for me to understand how Secure Proof-of-Stake works is using a restaurant example. Customers are seated in different sections (shards). Whenever customers (users) submit orders (transactions), a waiter (block proposer) will be chosen randomly to take in these orders. Then, these orders will be passed to the chefs (other validators) to validate & execute the orders by cooking & serving the right food to the customers.
The chances for the waiters and chefs to be selected randomly to take & execute these orders by how good their services are (rating score). Furthermore, similar to any PoS blockchains, they are also selected based on how many EGLD is staked to the validators. The higher the EGLD staked & rating score, the higher the chances of getting selected.
Besides, the way the waiters are being assigned & shuffled is so fast (100ms or lower) that even there’s a waiter who wants to put in a fake order, the other waiters or chefs can smell the bullshit and kick him/her out of the pecking order (waiting list) & degrade their rating score.
These features make MultiversX’s sharded chain secure, while able to process a significant amount of transactions with minimal hardware spec requirements.
2. xPortal Wallet
xPortal wallet is one of my top mobile wallets to use in terms of its full of rich features, security mechanisms and user experience.
The feature highlights are:
P2P chat feature built-in to the wallet.
Virtual credit/debit card (now you can even add it to your Google Wallet)
Herotags (similar like adahandles from Cardano)
Create your own AI avatar profile picture
In-app crypto portfolio tracking
Invisible Guardian - Basically a 2nd private key kept locally in your phone device that co-signs your transaction, so that hackers are unable to sign transactions if your seed phrase has been breached
DApp hub to access all the popular DApps in the MultiversX ecosystem with verified links
3. Accounts-Based & Native Asset Model
MultiversX is one of the very few chains that are implementing an account-based model with a “native assets” standard called eStandard Digital Token (ESDT). Unlike Ethereum or other EVM-chains, ESDT doesn’t require smart contracts or a virtual machine to operate, which enhances the cost & efficiency of transferring tokens. Unlike EVM chains, there’s no token approvals or revoking permissions needed as these tokens are not stored in smart contracts. NFTs & fungible tokens are treated with the same standard, just like Cardano. Likewise, MultiversX can potentially pay fees with any token besides EGLD with the ESDT token, similar to babel fees in Cardano & Ergo.
4. Interoperability with Sovereign Shards
I only learnt through MultiversX that you can treat a shard as a sidechain so that you can create your own chain that serves specific needs while utilizing the L1 as a security layer instead of creating a totally different set of validators like the ETH’s L2 ecosystem. For example, imagine if Malaysia wants to create a chain that wants to utilize our identification format system, with our own Ringgit stablecoin, a sovereign shard has the potential to offer that, with seamless cross-shard transfers across all the other sovereign shards without complex & insecure bridges.
Feels like a better sidechain design than other sidechains that I know of, but will need to see
5. Automotive-Focused, Real-World Utility
Something not mentioned by most MultiversX fans us is that I find MultiversX ecosystem to have more platforms that are automotive-focused than other L1 ecosystems, such as:
Holoride - Utilizing VR / AR technology to create enjoyable unique motion experiences such as gaming & multiverse when you’re a passenger in a car or a public transport like a bus or train.
Evoload - Platform that connects shippers & carriers to streamline a more p2p, efficient logistics experience that ensures optimal route planning, while utilizing MultiversX blockchain for enhancing delivery tracking visibility and minimizing costs.
QoWatt / GoCharge Tech - Both are EV charging infrastructure platforms that utilizes MultiversX blockchain to provide rewards incentivisation through sharing EV chargers & get discounts from owning NFTs for charging your EV.
Other real-world utility worth mentioning:
Gaupa Labs - Supply chain traceability solution, using digital twins for asset tracking, sensor networks for data acquisition and using MultiversX blockchain to store & verify product information.
Globees - An Airbnb alternative that enables property owners to rent rooms or property to renters per night, accepts cryptocurrencies as payments & utilizing MultiversX blockchain to remove 3rd parties while payment can be made directly to the homeowner, plus NFTs to tokenize overnight stays.
Itheum - Data privacy platform where you can license your data as a Data NFT and trade the NFT in a p2p open marketplace.
Overall, I would normally support blockchains that can integrate real-world utility into the blockchain, and MultiversX seems to have this but it’s currently not marketed as well as other blockchain ecosystems, as I need to dig into the MultiversX ecosystem page to be able to know these platforms.
Negatives & Constructive Feedback:
1. Underwhelming Ledger User Experience
If you want to use MultiversX ecosystem as a ledger user and only use web browser to interact with the DApps in MultiversX, it’s actually quite troublesome. If you’re logged into your MultiversX wallet here and you plan to use DApps like Hatom, you need to close your wallet first before you are able to connect to Hatom successfully, or else you’ll have an error saying “Check if MultiversX is open on Ledger”.
It may be a minor UX issue, but it’s annoying enough if you’re thinking of multitasking. If you’re an xPortal wallet user, you shouldn’t get similar experience like this.
2. Underwhelming Staking User Experience
MultiversX’s staking experience is not great compared to Cardano’s delegated staking model, such as:
(1) If you’re thinking of changing validators after staking to a validator, you’ll need to unbond your stake, wait for a 10-day countdown before you’re able to restake to another validator. Same 10-day countdown if you’re thinking of withdrawing your stake.
(2) Your staking rewards won’t be auto-compounded if you don’t click the “Stake Rewards” button. Instead, it gives you the option to claim or re-stake your rewards. Cardano enables you to auto-compound your rewards and you can send your ADA anywhere without the need to withdraw, which is a more user-friendly experience.
Even though there’s a liquid staking option to hold sEGLD for auto-compounding your rewards, it’s operated by Hatom which poses centralization risks.
3. Lack of Native Stablecoin Solutions
As of writing this article, MultiversX doesn’t have a native stablecoin that is powering the ecosystem. They have wrapped-USD stablecoins such as USDC, USDT & DAI. That will change with the introduction of USH, MultiversX very own native USD stablecoin powered by the Hatom Protocol that will be overcollaterized, and currently live on a public Devnet.
4. Transaction Speeds Not as Quick as Other Fast L1 Blockchains
Based on my experience in using MultiversX, average transaction time for making a simple transaction is around 6 to 10 seconds. If you’re using DeFi like Hatom that involves lending & collaterize your assets, the transaction time may bump up to around 10 to 15 seconds.
It’s still slower than the likes of Solana, Sui & Radix, but it’s acceptably quick for me. There will be a next upgrade in the future where the block finality will be shortened down to sub second time.
5. DApp Ecosystem
MultiversX has most of the basics DApps that is offered in most L1 chains, such as DEXes (xExchange), Lending (Hatom Protocol), All-in-one (JewelSwap), DEX Aggregator & Stableswap (AshSwap), NFT marketplace (XOXNO), Launchpads (BHero, xLaunchpad), Perpetuals (AshPerp), Liquid Staking (Hatom, JewelSwap), Identity Solution (Itheum) and many more.
I find myself to only stick with Hatom & Ashswap, and feeling uninterested in using other DApps. In comparison with the Cardano ecosystem, Cardano has loads of DEXes, lending platforms, synthetic assets, orderbooks and many more. Judging by how long both blockchains exist, I find Cardano’s DeFi ecosystem to be more mature than MultiversX with similar development time to build their ecosystems.
Summary
What really attracts me to MultiversX compared to other L1 blockchains is their approach to prioritize safety for users by designing their tokens & wallet interface around a “native asset” approach that is not represented in smart contracts like what EVM chains have, without the need to approve or revoke token permissions which improves UI & resistance against hacks.
The sharding approach also helps in scaling a blockchain to millions of users without significantly bumping up hardware requirements, in addition to fast transactions & very cheap 1-cent tx fee range.
However, I don’t really enjoy the staking & usability experience as a heavy Ledger user, it’s more suited if you’re a heavy xPortal wallet user, as the DApps, wallet & staking are all integrated in one mobile app. The DApp ecosystem also needs to be further expanded as I find there’s limited platforms that you’ll probably try for the long term. Hatom protocol is their largest DeFi platform with lending, liquid staking & utilitzation of their upcoming native stablecoin USH.
Sovereign shards are also interesting concepts, and I think Cardano & MultiversX can probably work together to utilize the partnerchain & sovereign shard knowledge for cross-chain interactions, while implementing Minotaur to merge both Ouroboros & Secure PoS consensus models to validate virtual blocks.
Last but not least, MultiversX is run by a Romanian team, so I’m also betting that there will be major partnerships with the Romanian government to use MultiversX as the main blockchain layer for businesses & government services in Romania.
Overall, MultiversX blockchain is definitely worth looking into.