- It is the first major public Blockchain to implement sharding.
- It relies on a hybrid consensus mechanism
- The network is scalable and TPS is higher than the others.
- It supports smart contracts and making Dapps.
- ZIL is supported widely in exchanges.
- Its shared structure makes it secure too.
- You get lower transaction fees.
- It is backed by a team of talented computer science experts.
- ZIL not immune to crypto sector volatility.
With time, the cryptocurrency sector keeps evolving and the changes can be quite unpredictable. Nowadays, you have the option of picking from a wide range of crypto coins. The newer generation coins come with additional features and they are developed to overcome the limitations of their predecessors. For a number of crypto projects, the single problem is that of scalability. This affects Bitcoin along with many other crypto tokens. Both Bitcoin with Ethereum has faced a delay in processing issues. There is Zilliqa Blockchain that aims to address the issue.
What is it?
Zilliqa is the sole Blockchain with functioning sharding. This enables its Blockchain to scale in a linear manner and proportionately with network growth. The Zilliqa mainnet was unveiled in early 2019. The network security and speed have been improved thereafter.
The USP of Zilliqa
Theoretically, Zillqa has no capping on the number of transactions executed per second. However, in reality, there is a limit. The fact is the number of transactions is reliant on network nodes. The TPS is growing with time.
In most Blockchain networks, scalability is a hurdle. As the nodes grow, reaching a consensus becomes increasingly difficult and lengthy. Think of it as a business meeting where reaching a conclusion requires everyone’s approval. If there are several thousand persons, it will take a long time to know what each of them thinks and it will be a delayed process. Some Blockchain networks are seeking solutions by increasing the block size and keeping some information off the network. However, these are not long-term solutions for resolving scalability issues.
Zilliqa has a unique solution for this issue. It enables more transactions to be executed even s more nodes join the network. This is done by redeveloping the Blockchain architecture. It makes use of a hybrid consensus protocol and that increases throughput after the addition of every 600 nodes. Zilliqa’s Blockchain divides the work accomplished on the network and the throughput grows after 600 new nodes.
Is it a successful method? It looks so. The Ethereum network with 25,000 full nodes can handle just 15 transactions per second. Zilliqa has 1,800 full nodes and executes 1,218 transactions per second. It has achieved 2,828 TPS with success.
What is Zilliqa Sharding?
Zilliqa resorts to a method known as Sharding. It divides the entire network into groups with 600 nodes each. Each group is called a shard. Each new group has 600 nodes and forms a shard. The shards divide network activities and each shares a part of network transactions. So, with 10 shards available, each shard does 10% of the work. As the network increases in size, more shards are created. Each shard generates a macroblock for the transaction done by it. The shards process these transactions parallel and the macroblocks are merged to form a full block. The complete block gets added to its Blockchain.
You can think of sharding like a task getting executed by many people at the same time and each of them is doing only a part.
The Consensus Mechanism used in Zilliqa
Zilliqa makes use of a hybrid consensus mechanism, blending the Byzantine fault tolerance and proof of work. Proof of work is used to set up node identity. The node is then assigned a shard and shards get consensus using the Byzantine fault tolerance method.
Zilliqa smart contracts and Scilla
Zilliqa launched its version of smart contracts by mid-2019. The developers can use smart contracts on its Blockchain using a scripting language called Scilla. It is safe by design. Besides, Scilla addresses several security vulnerabilities.
By using this programming language, Zilliqa developers can create new decentralized applications. The number of Zilliqa dApps is limited. However, the platform is ideal for making gaming dApps.
The team of Zilliqa
The Zilliqa team is made mostly of talents with backgrounds in computer science, engineering, and science. As it is, it was created out of a National University of Singapore R&D project. However, since its inception, the team has witnessed some changes. Prateek Saxena and Xinshu Dong (Zilliqa founders) have stepped down and Amrit Kumar has taken the lead. In 2020, Saayan Choudhury, a seasoned technology expert, joined as the CTO. There is the Zilliqa advisory board where the Zilliqa founders are present.
Over the years, the Zilliqa team has managed to forge some strong and strategic alliances that will benefit the project. These include alliances with London-based Elliptic, Aqilliz, and Chainlink. Zilliqa also tied up with Switcheo, a NEO based decentralized exchange.
What is the ZIL Token?
ZIL is the token made for the Zilliqa ecosystem. ZIL was made as an ERC-20 token. The native ZIL tokens were issued after the release of the mainnet in 2019. The users were given a choice to exchange the older ERC-20 ZIL tokens in lieu of new native ZIL tokens.
Like other cryptocurrencies, ZIL has undergone price surges and declines several times. ZIL is listed on several exchanges. Zilliqa users can stake their ZIL to make profits. It supports non-custodial staking. The annual return is 6%.
Summing it up
Overall, Zilliqa seems a promising contender among the new generation of cryptocurrency projects. It was designed to address the long-standing issue of scalability and the solution used seems apt. The project is backed and managed by a talented team with a solid background in engineering and computer science. From planning to execution, it has not hit any major roadblock so far. The hybrid consensus mechanism, sharding concept, and security measures work in its favor. Right now, Zilliqa lacks any high-profile rival in the sector. While ZIL is not exactly outside of the volatility that impacts the crypto sector, the future prospect of the Zilliqa project seems to be bright.