What is Zilliqa (ZIL)?

Zilliqa blockchain network provides an affordable and scalable network to build dApps and even going into the metaverse.

Zilliqa is the world’s first public blockchain network, with the capacity to handle thousands of transactions per second. In addition, its unique protocol enhances transaction rates as the network develops using sharding.

Zilliqa History

The Zilliqa project was founded in 2017 by researchers from the National University of Singapore. Zilliqa launched in June 2017 with the ZIL native token, which was built on the Ethereum blockchain’s ERC-20 token standard. When the mainnet was launched in January 2019, pre-existing ZIL tokens were exchanged for an equal amount of new ZIL available on the new blockchain network.

The goal was to build a scalable blockchain payment processing network capable of high transaction rates while providing cheap transactions with high security.

How Zilliqa Works: ZIL Ecosystem Overview

To increase the number of transactions that can be confirmed per second, Zilliqa uses sharding. Furthermore, the blockchain has a unique consensus protocol.

Zilliqa Sharding

In Zilliqa, without reducing the security and efficacy of the process, the protocol splits up the network into smaller, more manageable pieces as the total number of nodes grows. In addition, it facilitates consensus, and shards share results with the rest of the network to keep everyone on the same page.

As a result, the nodes on the network grow, and more shards are created to maintain linear scalability. For instance, if there were 3600 nodes on Zilliqa, there would be 6 active shards that handle the network transactions. In addition, it ensures that each shard has the required minimum of 600 nodes per shard.

The minimum of 600 nodes per shard is not a random number. It is based on a probabilistic analysis of the risk of malicious actors forming during consensus and disrupting the process. 600 nodes per shard provide the minimum acceptable risk in Zilliqa research to prevent such malicious acts.

Each shard creates its micro-block of transactions through its consensus process. Then, all 6 micro blocks are compiled into the main block called the transaction block. The transaction block composed of its shards is what becomes the immutable global state of the network during each round of consensus.

Features of Zilliqa

  • The blockchain network provides an affordable and scalable network to build dApps.
  • Zilliqa network can perform 2000 transactions per second (TPS). Which is pretty impressive.

Zilliqa Consensus

The consensus process in each shard relies on Practical Byzantine Fault Tolerance (PBFT). PBFT assumes that 1/3 of nodes can encounter Sybil attacks at any given time. Therefore, an agreement must be made correctly despite the malicious actor’s involvement.

The key difference in PBFT consensus is that these blocks have a good finality when they are agreed upon by a 2/3 majority rather than needing multiple confirmations, as seen in many Proof-of-Work ( PoW) networks. Once the nodes have been confirmed, the node can be assigned a shard.

Smart Contract on Zilliqa

Zilliqa has its language scilla—smart contract intermediate-level language—which can be used to program smart contracts. It is a functional programming language that allows for checks and formal verifications. This helps users to verify that the contract is safe before using it.

Zilliqa’s Tokenomics

ZIL is the native cryptocurrency of the Zilliqa network. It is used to pay transaction fees, gas fees, and reward miners. ZIL tokens were initially ERC-20 tokens based on the Ethereum blockchain. In Jan 2019, Zilliqa released their mainnet, issuing their native ZIL token.

The ZIL coin has a fixed max supply of 21 billion. Therefore, it can be reduced by burning ZIL from the transaction fees.

Where to Buy Zilliqa?

ZIL is listed on Guarda. Before starting, install the Guarda app on mobile or desktop. It can also be accessed via any browser.

Follow these steps below to purchase the ZIL tokens.

  1. If you are a new user, create an account and write down your password. Existing users can just log in by inputting their password.
  2. Create a Zilliqa wallet if you do not already have one. Download and safely keep the backup code.
  3. Click on the ‘buy’ button and put in the amount. Guarda supports various currencies of the world.
  4. Hit the ‘buy’ button and choose your preferred payment method. Guarda allows Visa/Mastercard and SEPA.
  5. Verify your ID. After the transaction has been confirmed, your tokens will appear in your wallet.

Where to Store Zilliqa?

You will need a crypto wallet like Guarda to store Zilliqa tokens. Guarda is a non-custodial wallet which means you have full control over your private key. In addition, it is a software that prioritizes security and privacy.

To Create a ZIL wallet address on Guarda,

  • Log in to the Guarda ecosystem.
  • Scroll down and click on the ‘+’ sign.
  • Choose Zilliqa by searching for it or typing the name out in the search bar.
  • Hit the ‘create’ button and download the backup. Make sure to keep the backup safe.
  • You can start buying, exchanging, and staking Zilliqa tokens.

Where to Stake Zilliqa?

You can stake ZIL to get incentives on Guarda. These are the step-by-step guides on how to stake ZIL to earn rewards.

  1. Tap on the ZIL wallet. Below the barcode, the ‘ZIL staking’ will appear after a few seconds of loading.
  2. Click the ‘stake’ button. The minimum staking amount is 10 ZIL. Make sure you top up your wallet before staking by buying ZIL tokens.
  3. Click Next after selecting the validator and staking amount. Depending on the reward amount and the Annual Yield, you can use the default validator or choose another.
  4. You’ll notice a ZIL address you’re delegating from, a validator address, an amount and its fiat equivalent, and the network fee on the confirmation tab. Tap confirm after double-checking the information.
  5. That’s all! Your Zilliqa has now been successfully delegated. All you have to do is wait for the reward.

Zilliqa Future: Metapolis

As the metaverse concept has grown in popularity, more entities are entering it, particularly since Facebook rebranded itself as Meta last year. Zilliqa—the layer-1 blockchain network— is set to roll out Metapolis (a virtual world) on April 2 in Miami. According to Sandra Helou—Head of metaverse and NFTs at Zilliqa, a big part of what Zilliqa wants to achieve with Metapolis is to bridge the gap between the physical and virtual worlds.

Zilliqa’s Metapolis focuses on providing configurable and Extended Reality (XR) expertise to its users and customers. This would be available through Augmented Reality (AR) and Virtual Reality (VR). Metapolis appears to be self-sustaining, with engagement layers including NFTs, e-commerce, play-to-earn, digital avatars, etc.

Conclusion

After a series of fluctuations, the price of the ZIL token is currently $0.20, the same price as when it was initially launched in 2019. Though the token price is relatively low in value, the Zilliqa projects have potential, especially the coming Metapolis.

For more information about the Zilliqa ecosystem and its future projects, join the community and keep yourself up to date with news.

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