What is Zilliqa? (ZIL)

 

Zilliqa is a smart contract blockchain platform that uses the name Zilliqa. Zilliqa’s sharding technology, which aims to boost transaction capacity, is based on a concept called sharding.

The MDGUP (Mining Difficulty Update Procedure) algorithm that Zilliqa employs is a hybrid of proof-of-work and Practical Byzantine Fault Tolerance (PoW and pBFT).

Zilliqa blockchain’s native currency is ZIL, which can be referred to as ZIL. The cost of transactions on the blockchain is paid with ZIL. These charges are used to compensate the nodes that execute the computations necessary for the blockchain’s functioning.

The Zilliqa project began in 2017, and it was created by a group of researchers from the National University of Singapore. To manage the Zilliqa project’s development, a team of researchers subsequently established Zilliqa Research Ltd.

How Does It Work?

Zilliqa uses sharding to scale transaction confirmation rates. Furthermore, the blockchain employs an unusual consensus method. These ideas are discussed in further depth below.

Sharding on Zilliqa

A blockchain is a decentralized digital ledger that tracks the balances and transaction history of a set of accounts. This record is maintained by a large number of disparate computers (known as nodes) that must all agree on the specifics. All of the nodes compare new transactions to see whether they are fraudulent, at which point they are recorded in their copies of the record

It’s feasible to break this record down into smaller, easier-to-add pieces. A shard is a part of the main record that is smaller and simpler to add to.

Each shard is divided into groups of nodes, which execute the same activities as before, adding and verifying new transactions. A separate group of nodes compiles the records from each shard at regular intervals to combine them before sharding them again.

The beauty of shards is that they allow balances and transaction data to be readily available to the whole network while avoiding the need for every node on the network to maintain a complete copy of the entire record. Nodes only handle blocks of information assigned to them by the system.

Zilliqa Consensus

A blockchain protocol for reaching consensus relies on independent nodes sharing the same ‘truth.’ In other words, all users should have the same values for account balances and transactions histories.

There are several distinct types of consensus, but they all have one thing in common: making it difficult or costly for a single node (or a small group of nodes) to deceive the rest of the network into believing fraudulent transactions.

With Consensus, a decentralized network can sustain good conduct without the need for a governing body.

The Zilliqa network employs a unique consensus mechanism that mixes Proof-of-Work (PoW) with Practical Byzantine Fault Tolerance (pBFT).

Because PoS makes it difficult to deceive other nodes, it’s much more difficult to mislead others. Only the first block that is proposed is accepted by other nodes; all subsequent blocks are discarded. A block reward of ZIL is paid out to the first node that successfully proposes a new block.

Because all nodes must agree on the truthfulness of a block before it is added, BFT makes it difficult to deceive other nodes.

The only way to include fraudulent transactions is to control all of the nodes at once. Every node that participates in the unanimous decision receives a tiny portion of the block reward.

Zilliqa claims that PoW and pBFT working together provide a secure mechanism for mining with less-expensive computing. The pBFT aspect implies that having the fastest computer is no longer enough to earn a reward.

Primary Features of Zilliqa

Zilliqa is a smart contract platform. This means that developers can use Zilliqa to create decentralized applications (dApps).

The following is a list of Zilliqa features:

• Sharding enables the processing of a massive number of transactions each second, resulting in extremely low transaction costs.
• Sharding enables the blockchain to scale in a similar way as cloud computing.
• nCost-effective mining – The pBFT requirement that everyone agree on makes it possible for even lower-powered devices to get a piece of the block reward. This makes ZIL mining more cost-effective because even if a node doesn’t propose the first block, it may still earn some reward.

How to Use Zilliqa Coins

Zilliqa coins are used to pay for transactions on the Zilliqa blockchain, much like Bitcoin and Ethereum. To utilize Zilliqa coins, you’ll need a Zilliqa-compatible cryptocurrency wallet, just like with every other cryptocurrency.

There are several different software and hardware wallets to choose from when storing, transferring, or staking your ZIL.

Some of the most popular ZIL wallet alternatives are::

• Ledger (hardware)
• Trust Wallet
• Atomic Wallet
• ZilPay.

Hardware wallets are generally more secure and secure than paper or software wallets, but they’re also more expensive. If you can afford it, a reputable hardware wallet is a great way to protect your cryptocurrency holdings securely.

Many crypto wallets support several blockchains. This compatibility allows you to keep track of a large number of cryptocurrencies, tokens, and other assets without having to maintain many different wallets.

When you use ZIL to pay for transactions on the Zilliqa blockchain, everything happens automatically.

• You must start with a non-zero amount of ZIL in the account you’re sending from.
• The amount of ZIL that will be sent in the transaction will be shown to you before you confirm it, as well as the equivalent USD value.
• When you accept the transaction, it will take a little while for it to be recorded in the blockchain.

Pros and Cons of Zilliqa Coin

There are several benefits and disadvantages associated with using and owning ZIL, or Zilliqa cryptocurrency. The following is a list of the main pros and drawbacks.

Pros

• Low-cost – In December 2021, 1 ZIL costs less than 0.10 USD, implying future profit if Zilliqa has a large number of users and the demand for Zilliqa coins rises.
• Stake-able – ZIL can be staked (using a Zilliqa-compatible crypto wallet) to earn extra ZIL by keeping the coin.
• Zilliqa wallets are readily available, as there are several different options. Ziliqa-compatible crypto wallets include some well-known names like as Ledger and Trust Wallet, as well as a few lesser-known ones.

Cons

• Newness: Zilliqa is a much younger project than, say, Ethereum. This implies that widespread adoption might be quite gradual if it occurs at all. Investing in ZIL with the intention of its price rising as more people use it may be hazardous.
• Availability: ZIL is not yet available on any of the major US-based cryptocurrency exchanges, but it may be found on foreign exchanges such as Binance and liquid.com.

Final Thoughts 

Zilliqa (ZIL) is the native cryptocurrency of Zilliqa blockchain. To increase the number of transactions that the chain can manage, Zilliqa employs sharing technology. On the Zilliqa blockchain, zilis are used to compensate miners for their efforts.