Zilliqa is a public blockchain cryptocurrency project, which is best known for improving its scalability issue by implementing sharding. This is a scaling solution that effectively breaks down transactions into smaller components, also called shards, by validating their nodes in the blockchain network. The platform utilizes its ex-ERC-20 standard digital coin named Zilliqa (ZIL). The Zilliqa mainnet was successfully launched in January 2019.
This guide will talk about the purpose for which Zilliqa is designed, the team behind it, the way it works, and various uses and applications.
What Is Zilliqa Designed For?
Zilliqa was designed as the first public blockchain that embraced sharding, which allowed for linear scaling as the blockchain grew in size. Scalability has been a major issue with almost all crypto blockchain platforms. For instance, Bitcoin is unable to process all its demands, and the same can be said for Ethereum where limited throughput leads to smart contracts becoming gas-intensive.
Zilliqa intends to fundamentally tackle this problem and change the way blockchains reach consensus. Their solutions involve sharding, which allows the blockchain to scale with the size of the network.
Theoretically, where Zilliqa is concerned, there is no limit to the number of transactions that can be processed on the network.
Who Is the Team Behind Zilliqa?
The Zilliqa team is largely made up of computer science academics and PhDs. The CEO, Xinshu Dong, is a cybersecurity expert responsible for numerous Singapore-based national security projects.
Prateek Saxena who is the Chief Scientific Advisor, with a Ph.D. in Computer Science from the University of California, Berkeley and is now teaching computer science at NUS.
Zilliqa’s advisory board includes some very prominent figures in blockchain including Loi Luu (co-founder of Kyber Network), Nicolai Oster (partner at Bitcoin Suisse AG), Alexander Lipton (founder and CEO of StrongHold Labs), and Vincent Zhou (founding partner of FBG Capital).
How Does Zilliqa Work?
Blockchain consensus tends to get more complicated as the network gets larger. With large groups comprising of hundreds of millions of individuals, a blockchain network running on traditional consensus shall need more energy to run the voting system. Zilliqa works by effectively changing the architecture of the entire system, which ensures that the network size and consensus speed are positively correlated.
The team has re-imagined blockchain tech from scratch to implement a hybrid consensus protocol, which grows the network’s throughput when 600 new nodes join it. In theory, Zilliqa’s throughput increases exponentially by dividing the work with every 600 new nodes.
The problem of scalability is answered through sharding, where the protocol divides all mining nodes present on the network into various smaller groups of 600 nodes, where each group comes to be known as a shard.
Each of these shards is then applied to process a fractional portion of the network’s transactions. Higher the number of shards, the more consensus load is divided by the network among them. This helps keep computing demands relatively stable.
What are Current and Future Applications of Zilliqa?
The Zilliqa token or ZIL is a native token and works on the same principle as other tokens on Dapps, such as NEO or Ethereum. It serves multiple purposes of being a mining incentive, tender for paying the transaction fee, and gas for contract execution.
Some leading and pioneering blockchain applications on Zilliqa include:
Ocean Rumble – This epic underwater battle game comes with a PvP arena concept, from the makers of Etheremon
Impetus One – This Dapp uses behavioral economics to incentivize its users to complete fun missions
BOLT – This Dapp is successful in breaking the payment barrier to give its users, who belong to emerging markets, access to information and entertainment
Krypton - A portal built entirely on Zilliqa, which gives access to a whole galaxy of blockchain-based games
Though Zilliqa began as a paper before its launch in January 2018, it is still considered a relatively new project in the crypto sector, which has grown in leaps and bounds to become one of the most scalable solutions in the crypto-verse.
The best part about Zilliqa is that research is constantly carried out to explore the numerous possibilities of this blockchain platform, which aims to offer scalability solutions to other cryptocurrencies. The fact that the Zilliqa team comprises great developers and academic professionals from Singapore and the United Kingdom, allowed the decentralized blockchain platform to become a direct competitor to Ethereum in a short space of time.
There are talks of adding cross-chain functionality shortly, which shows that Zilliqa is dedicated to listening to its community about the areas to work on.