The Internet Computer Protocol (ICP) and MultiverseX (formerly Elrond) both utilise nodes to drive decentralisation but implement distinct strategies in their structure, governance, and permissioning processes.
Node Operations and Governance
In ICP, nodes are operated by independent entities that adhere to strict hardware standards. These nodes are distributed across various geographic locations to maintain a diverse and decentralised network. They are grouped into subnets, functioning similarly to blockchain instances, which handle smart contract processing and data storage. This structure resembles sharding in other blockchains but is dynamically managed by ICP’s Network Nervous System (NNS). The NNS is a decentralised governance framework where stakeholders vote on proposals, network upgrades, and node adjustments.
Conversely, MultiverseX relies on validators who operate nodes and stake $EGLD tokens to participate in the network. The system is divided into shards, which facilitate parallel transaction processing and scalability. Validator participation in MultiverseX depends on a minimum amount of staked $EGLD, tying network involvement to economic capacity rather than hardware criteria. Governance in MultiverseX is managed through consensus among validators and delegators, with decisions influenced by the voting power of staked tokens.
Decentralisation and Influence
A significant distinction between the two networks lies in their approaches to decentralisation and permissioning. ICP’s subnets are governed by a transparent global voting mechanism through the NNS, fostering a highly decentralised system without the reliance on a concentrated group of validators. In contrast, MultiverseX’s governance is more centralised, as control tends to rest with validators holding substantial economic stakes. This model can lead to power imbalances, where wealthier validators wield more influence over network decisions.
Technological and Operational Differences
ICP’s Chain-Key Technology allows for seamless, automatic protocol upgrades without network downtime. Subnets can autonomously update or reconfigure based on NNS decisions. On the other hand, MultiverseX upgrades require manual coordination among validators, potentially slowing the process.
The networks also differ in their permissioning systems. ICP imposes specific hardware requirements but no economic barriers, promoting equal participation opportunities. MultiverseX, however, necessitates staking a significant amount of $EGLD, which can advantage wealthier participants and increase the risk of validator cartels forming.
While both ICP and MultiverseX enhance scalability through node segmentation, ICP’s governance model and cryptographic advancements contribute to a more decentralised, adaptive, and resilient network. MultiverseX delivers high performance but leans more on staking-based economic incentives, which may lead to a centralised decision-making framework.
