Hello crypto nation, I’m Kris with Exodus,
and it’s time to jump in the deep end as we take an in-depth look at Zilliqa. For those of you who like to read, click the
link above to visit the Exodus blog for a breakdown of the Zilliqa coin and mainnet. And now let’s answer the
question, “What is Zilliqa?”
Zilliqa is a public blockchain platform introduced
in 2017 and founded by a team of academics, entrepreneurs and engineers from the National
University of Singapore.
The platform has so far found real-world usability in various industries
such as finance, digital advertising and gaming.
The Zilliqa blockchain has a utility token called
Zilling, no relationship to shilling, or ZIL for short. It is used within the Zilliqa ecosystem
as gas to execute smart contracts, as rewards for miners and to pay network transaction fees.
Before we dive deeper into the Zilliqa ecosystem and what makes it unique, for all you ZIL
investors out there, let’s do the numbers
Zilliqa was reported to raise $20 million dollars
in private funding and another $2 million dollars during the one-week ICO for the company’s ZIL
token from 27 Dec 2017 to 4 Jan 2018. The ZIL token achieved its All-Time-High of $0.2303 on May
10 2018 and has a circulating supply of 11 billion coins and a maximum supply of 21 billion coins.
Are you a long-term holder of ZIL? Let us know in the comments why and what your
future Zilliqa price prediction is.
So what makes Zilliqa unique in the cryptocurrency
universe? Two words: Sharding and Scilla.
Zilliqa’s mainnet went live in January
2019, becoming the world’s first public blockchain platform to successfully utilize
sharding to effectively scale its network.
Well if you haven’t heard of sharding, it’s the process of fracturing a network
of blockchain nodes into different groups called shards. Take for an example a network
of 1,000 nodes. Zilliqa would divide the network into 10 shards each with 100 nodes.
Every shard processes a small portion of all transactions simultaneously and in parallel
with other shards. This is called a microblock. These microblocks are then merged into one
complete block and added to the blockchain.
Due to the parallel transaction processing, if
each shard can process 10 transactions per second, then all shards together can process
100 transactions per second.
Now for security reasons, a shard must be
sufficiently large with more than 600 nodes to lower the probability of having a fraction
of up to 1/3 of the shard being malicious. With a shard size of 600 nodes, the
probability of such is 1 in a million.
With sharding, Zilliqa is able to solve
the blockchain trilemma of scalability, privacy and decentralization.
remains one of the biggest challenges of public blockchain platforms with current platforms
unable to scale at large to handle an increase in network size. The Zilliqa blockchain is able
to scale almost linearly as the network grows, meaning that the potential to process
a greater amount of transactions increases as the number of participating
nodes in the network increases. Anybody up for a flash mob?
In a recent trial run, Zilliqa reached near 2,500
transactions per second using 6 shards with a total of 3,600 nodes. This is in comparison
to Bitcoin’s 4-7 transactions per second and Ethereum’s 7-15 transactions per second.
Zilliqa is out to take on payment systems like Visa and MasterCard’s average transaction
rate of 8,000 transactions per second.
Another area that Zilliqa achieves greater
efficiency is in its consensus protocol.
Like Bitcoin, Zilliqa uses the
Proof-of-Work (PoW) consensus protocol, but only to establish initial mining
identities and to defend against sybil attacks. Any new node who wishes to join
the Zilliqa network has to first perform a PoW as an entry ticket to the network.
This gets a little complex here.
In order to give finality to transactions,
Zilliqa moves away from PoW, and uses an optimized practical Byzantine Fault Tolerant consensus
protocol, which delivers the following benefits. A byzantine fault tolerant system basically means
that if there is a malicious actor in the system then the system is actually protected from those
malicious actors trying to take over the network
Finalized transactions with no need for multiple confirmations; no waiting period
Higher energy efficiency as consensus is reached without requiring intensive computations
Incentivization of every node with greater payout and lower reward variance
Unlike PoW, pBFT does not require the entire transaction history to be
saved on the blockchain, thus improving storage requirements.
Zilliqa is currently
exploring decentralized cloud storage network options to further optimize their storage.
Zilliqa as a whole is less energy intensive, requiring about one third of the energy
required by blockchains using PoW as a consensus protocol. Only 1 minute out of every
2-3 hours is needed to mine ZIL, allowing miners to dual mine or triple mine other chains at
the same time and optimize their earnings. Recently, Zilliqa has added staking to further incentivize the network. Staking opens
up Zilliqa’s seed nodes to the public, increasing the network’s decentralization
and creating more utility for the ZIL token. Well here’s a fun fact.
Zilliqa comes from the word ‘silica’. Just as silicon is used
to power computers around the world, Zilliqa is gearing up to power the next
generation of decentralized apps around the world. Zilliqa has its own smart contract language, Scilla or Smart Contract
Scilla is said to be easier to understand and more secure by addressing known security
vulnerabilities of other languages. Only time will tell if Zilliqa has what it
takes to compete with the likes of Ethereum, EOS, Algorand and well, there’s a lof of projects out there trying to
knock Ethereum from its smart contract throne. Polkadot anyone? If this video helped, give it a thumbs up. And
if you want more crypto videos from Exodus, smash that subscribe button.
Until next time, HODL ON!.