FameEX Research focuses on the digital asset market and provides expert-level analysis with objective and fair insights for users globally. With our innovative ideas, we aim to connect everyone in the world.
Discover the latest ZIL price with FameEX's ZIL/USD Price Index and Live Chart. Keep up-to-date with the current market value and 24-hour changes, as well as delve into Zilliqa's price history. Start tracking ZIL price today!
Zilliqa is a public, permissionless blockchain created with the express aim of resolving the long-standing issue of scalability that is common to most existing blockchain networks. In order to achieve high throughput with the capacity to process thousands of transactions each second, Zilliqa leverages a concept known as sharding which is a solution that works as a layer 2 for scaling. It was officially launched in June 2017 and the testnet went live in March 2018, culminating in the launch of the mainnet by June 2019.
Zilliqa is known to be the dwelling place for numerous decentralized applications (dApps), as of October 2020, it also provides the opportunity for users to stake and participate in yield farming. Its native utility token, ZIL, performs the task of facilitating transactions on the network as well as executing smart contracts. Essentially, Zilliqa aims to take blockchain performance to new heights and broaden the horizons of what can be achieved with blockchain technology.
Zilliqa adopts a unique sharded architecture. This structure stands as the pillar of the network's ability to solve the scalability issues that are prevalent with traditional blockchains. Unlike the average transaction rate of 5-20 transactions per second (TPS) on first-generation blockchains, Zilliqa's sharded structure boosts transaction speed by allowing multiple chains to process transactions simultaneously, thereby enhancing the network’s total capacity and performance. Furthermore, Zilliqa provides an exceptional layer for smart contracts, letting users craft contracts using Scilla as its proprietary programming language. This makes Zilliqa a versatile smart contract platform which can also be used for various business applications that require high-speed transactions and secure data management.
At the core of Zilliqa's functioning is the innovative concept of sharding, a technique that distinguishes it from established blockchain networks like Bitcoin and Ethereum. In these traditional systems, miners all strive to solve the same set of transactions in a block, making it a logical, sequential process. In contrast, sharding breaks down a blockchain network into smaller parts, known as “shards”, each capable of independently solving a segment of the block's transactions in parallel with the others.
To visualize the concept of sharding, consider a large team of individuals tasked with solving a complex puzzle. If everyone was to try to solve the entire puzzle at the same time, the process could become chaotic and inefficient. Sharding is like dividing this team into smaller groups, each responsible for solving a different section of the puzzle. Therefore, sharding significantly accelerates transaction handling, making the network more effective and enticing for more nodes to join. The more nodes you have, the more subgroups are available to work on the puzzle, which boosts the efficiency of the system.
The utility token of Zilliqa, ZIL, plays a crucial role in the functioning of the network. Raised during an Initial Coin Offering (ICO) in January 2018, ZIL functions as the reward for mining, as gas for contract execution, and as the means for paying transaction fees, similar to Ethereum. Zilliqa uses a distinctive two-layered consensus protocol to validate transactions. The first layer, the Shard Layer, acts as a preparatory phase for the creation of full blocks. Each shard only processes micromodules and small chunks of larger blocks doesn’t require interaction with other shards. The micromodules then move on to the second layer known as the DS Layer.
The DS Layer comprises a DS committee, a selection of randomly picked nodes. This group pieces together the micromodules into a complete block and validates it. The nodes in the DS layer have direct access to the blockchain, enabling them to make the final decision on the validity of individual blocks. For concurrent transaction processing, Zilliqa employs shards, and to achieve agreement on valid transactions, each shard and the DS committee use a specific optimized Byzantine fault tolerant (pBFT) mechanism. This results in deterministic finality in the blocks, a contrast to Bitcoin’s Nakamoto Consensus, which uses stochastic finality. Consequently, it eliminates the need for multiple block validations.
Zilliqa held an initial coin offering (ICO) in January 2018, raising $22 million. The total supply of ZIL is approximately 21 billion tokens and the distribution is as follows: 40% or 8.4 billion tokens are set aside as an incentive for miners, distributed over a period of 10 years. The next 30%, which equates to 6.3 billion tokens, are dispensed to the community through a public sale. Another 30%, also 6.3 billion tokens, are allocated amongst various companies, teams, and agencies. This segment includes 10% (2.1 billion) to Anquan Capital, 12% (2.52 billion) to Zilliqa Research, and 5% (1.05 billion) destined for Zilliqa's founding team and future employees with these tokens being subject to a three-year vesting period. The remaining 3%, or 0.63 billion tokens, are reserved for various supporting agencies. As of now, ZIL (Zilliqa) is ranked #95 by CoinMarketCap with market capitalization of $328,925,271 USD. The current circulating supply of ZIL coins is 15,867,699,447.
The potential of Zilliqa is evident in its innovative approach to addressing key issues in blockchain technology: scalability and speed. Its unique sharding solution provides an efficient and effective means to process transactions, making it a platform of interest for developers of DApps and smart contracts. The ease of use and enhanced security offered by Scilla, Zilliqa's smart contract language, addresses vulnerabilities commonly found in other languages.
Determining whether Zilliqa is a good investment depends on various factors. Zilliqa's appealing attributes include its innovative technology and scalability, its attraction to DApp developers, and its increasing usage in the DeFi sector. Furthermore, Zilliqa is free of any direct high-profile competition, allowing it to develop and grow without significant market interference. Investing in ZIL may have the potential for growth. However, caution is advised as the cryptocurrency market is known for its volatility and prices can fluctuate greatly. It is crucial to conduct thorough research and analysis before investing and never to invest more than one can afford to lose.