What is Zilliqa (ZIL)?

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.

Sound familiar?

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.

Scalability 
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.

In fact, 
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
  pBFT enables:

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 
Intermediate-Level Language.

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!.

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