Zilliqa ZILPrice $ 0.00396

Zilliqa is a blockchain-powered platform that implements a sharding mechanism to solve the scalability issues seen in other popular distributed ledgers. The utilization of a sharding consensus algorithm allows interconnected chains to execute transactions in parallel, thus increasing the overall network throughput. 

Along with solving scalability limitations, Zilliqa also provides tools for developers to enable the creation and smooth scalability of decentralized applications (dapps), decentralized finance services (DeFi), and NFT (non-fungible token) marketplaces. The network achieves consensus on transactions and contract execution using a hybrid PoW-PBFT mechanism. Recently, the platform also launched solutions for staking and yield farming. 

Zilliqa also developed a proprietary security-focused programming language called Scilla. It allows developers to create and deploy customizable decentralized applications designed to replicate real-life services.

The platform is powered by ZIL Token. It is a utility token necessary to run smart contracts and pay transaction fees within the Zilliqa blockchain. These tokens are also given as a reward to PoW (proof-of-work) miners who contribute their resources to the network, as well as to stakers as gained interest. A popular and promising crypto project, Zilliqa [ZIL] market price is on the watchlist of many crypto investors and traders. 

Zilliqa appeared in June 2017 with Amrit Kumar and Xinshu Don, researchers from the National University of Singapore being at the head of the project. Starting from January 2019, the network has its live mainnet. 

The project conducted an Initial Coin Offering (ICO) in 2017 where it managed to raise over $22 million in ETH.

How Does Zilliqa [ZIL] Operate?

Like many other cryptocurrency networks, Zilliqa offers smart contracts, transaction verification settlement, and crypto token issuance.

Developers can use the Scilla programming language to run smart contracts and design new decentralized applications to offer various products and services.

While this system may appear complex and hard-to-understand, Zilliqa is ultimately aimed at executing smart contracts and confirming network transactions in a highly scalable and efficient way.

The unique features of Zilliqa are sharding and Byzantine fault tolerance consensus protocol. 

Sharding

Sharding is all about increasing the performance and capacity of the blockchain. While many modern blockchain platforms utilize every node within the network to complete every transaction, Zilliqa splits the network into different shards (bits of information) where every shard processes a subset of network transactions and requires only a few miners to work on those transactions at any given time.

Each shard acts as a separate chain and allows their assigned nodes to store data, complete transactions, and record new blocks to their specific shard chain called micro-blocks.

These micro-blocks are then combined into a transaction block by directory service nodes (DS nodes) to be then written to the Zilliqa blockchain.

It should be noted that shard nodes hold a specific subset of the Zilliqa blockchain and are not required to store the entire history of Zilliqa.

Practical Byzantine Fault Tolerance (PBFT)

Zilliqa uses the proof-of-work consensus scheme to secure its network, but it also has a two-layer blockchain structure to enable more efficient use of computational resources. To create an identity or participate in sharding, the user must provide proof of work, but this is not enough to reach consensus. Instead, Zilliqa employs a consensus protocol known as Practical Byzantine Fault Tolerance or PBFT. 

In PBFT, nodes are grouped together and managed by one main node called Leader. The Leader node is responsible for broadcasting both transactions and decisions. When two-thirds of the nodes in the shard cast their votes, the Leader commits the answer. Leader nodes are constantly changing to prevent malicious leaders from the undesired influence on the network.

For the nodes to be able to govern the blockchain and vote on protocol modifications, node operators need to stake their ZIL, meaning that anyone who owns ZIL tokens can help manage the network. When using PBFT, all nodes assigned to certain shards must come to an agreement before the micro-block is completed and put into a transaction block.

Each node is subsequently rewarded with a portion of the block reward for verifying transactions.

What is ZIL Token?

ZIL is a utility token that is necessary to execute smart contracts and cover transaction commissions on the Zilliqa platform. ZIL tokens also act as a reward for PoW miners and stakers for contributing their resources to the network. With ZIL tokens, you can access every dApp and platform service hosted on the Zilliqa blockchain. You can also use ZIL tokens to pay for products and services, trade NFTs, and more. Of note, ZIL market price is subject to volatility (sharp value changes in both directions).

Where to get ZIL Crypto?

Zilliqa [ZIL] cryptocurrency is traded on many crypto exchange platforms, both centralized and decentralized. Centralized crypto exchanges allow you to buy ZIL Token with fiat money such as US dollars or Euros. Decentralized exchanges allow you to swap your current cryptocurrency assets for ZIL. Trusted and popular Zilliqa markets include Gate.io, Binance, Hotbit, Bitvavo, and dozens of other exchanges. 

Where to Store Zilliqa [ZIL]?

A crypto wallet is a physical device or software that manages and protects your crypto holdings. It’s like a private online bank account that only you can access. No unauthorized user can freeze or claim ownership of your crypto assets.

Zilliqa [ZIL] is supported by various cryptocurrency wallets, some of which even allow for ZIL staking. Such wallets include Moonlet, ZILPAY, Ledger, Atomic Wallet, Guarda Wallet, and ZILLET among other options. 

Is ZIL Minable? 

Zilliqa [ZIL] token can be mined. ZIL mining relies on a unique mechanism that combines proof-of-work for Sybil resistance and practical byzantine fault tolerance for agreement.