Zilliqa a new innovative, high-throughput decentralized blockchain that can handle a lot of traffic that doesn’t have a single point or control or failure.
Created: June 2017
Went live:(mainnet):: January 2019
Market cap (April 27, 2019): $150.6 million
Trading at $0.01734 (April 27, 2019)
Zilliqa Website: http://www.zilliqa.com
Zilliqa Solves A Major Problem With Blockchains
As more people use the blockchain networks of Bitcoin, Ethereum, and others to make day to day transactions – and specifically on the Ethereum network with developers running their dApp smart contracts – those block chains cannot efficiently handle the demand. They do not scale in proportion to the demand and the result is that we see slow transaction speeds and higher transaction fees.
Plus crypto payments are not yet mainstream. As just mentioned, transaction fees are getting more expensive, transactions growing slower to process, and the technology is confusing for the average person.
We live in a world where people are increasingly using digital payments and crypto is working on scaling to catch up.
Note: In China, for example, did you know that only 15% of all payments use cash.
Bitcoin and Ethereum are trying to solve the issue of scalability on their networks by using “second-layer” protocols like Lightning and Plasma. What this means in layman’s terms is that these so-called solutions of handling transactions occur off-the-blockchain; that is, off of the network (a blockchain is a network) resulting in faster and cheaper transactions.
Analogy: The Lightning and Plasma solutions are like running a tab at a bar. Your drinks come faster and you do not worry about paying until later. And when you leave, you swipe your card or pay cash to settle your tab.
That these proposals are “off” the blockchain network, they do not address the problem inherent with the blockchain network itself, scalability.
Zilliqa’s Solution: Sharding
Zilliqa’s new blockchain technology actually solves the problem of scalability through sharding – which will allow the Zilliqa network to process Visa-level payments quickly!
What is Sharding?
Simply put, sharding breaks up the blockchain into smaller subnetworks called “shards.”
Each shard processes just a few transactions and maintains the necessary data to process the transactions and no more.
Separating out the data makes things light, fast, and efficient.
Analogy: You are in a department store that has 20 checkout lines. The cashiers on those checkout lines do not need to see everyone’s bank transactions. If they demanded that information, checking out would slow down or even grind to a halt. The cashiers only need to know that the person has the money to pay.
In Zllilqa, every ZIL investor will have their own wallet. Each wallets transactions are assigned to a specific shard depending on the last digit of the wallet.
This might sound trivial, but it is not. This is what makes Zilliqa work! It is important that every transaction from a certain wallet goes to the same shard every time.
This prevents people from directing transactions to different shards on purpose.
Shards keep information specific to their shards, that way people cannot spend the same money on different shards.
Each wallets shard knows the value that’s in the wallet and it will know how much is in there for the next transaction, as well.
Zilliqa has six shards or subnetworks. It can process 2,828 transactions per second on its six shards.
Putting this in perspective, Bitcoin processes 7 tx/s and Ethereum 10 tx/s.
Zilliqa is Scaling
Compared to crypto, the visa network can process over 8000 tx/s. Zilliqa is aiming at visa-level speed!
I think that Zilliqa’s innovation and unique growth pattern will propel it forward.
To meet demand, keep transaction fees low, keep transaction traffic fast and moving along, the Zilliqa blockchain creates more subnetworks (shards) it will get faster. It’s like a multi-laned superhighway (each lane equated to a shard). Instead of getting slower, as Zilliqa grows, it gets faster. The Zilliqa blockchain network dynamically expands with demand. It scales linearly with the demand.
When Zilliqa is fully up and running – and with many more people using it – it will be a visa-level payment system.
Zilliqa is a Blockchain For Smart Contracts, Too.
The Zilliqa blockchain has smart contract capabilities.
It is coded in scilla (smart contract intermediate-level language.
It is smart contract-enabled and codes with security in mind meaning that it will be able to conduct payments and run dApps, too!
Note: Last July, the pokemon-style game Etheremon switched from running on Ethereum “only” to a combination of Ethereum plus Zilliqa. Why? Because of the high gas prices associated with Ethereum gas.
Zilliqa Key Features
High transactional speed
Smart contract powered by scilla (Zilliqa own programming language)
Fast, inexpensive payment capabilities – visa-level capacity when it goes full throttle.
Mainstream Adoption Underway
Mindshare – an ad platform looking to reduce fraud and help advertisers pay only for accurate impressions.
Bluezelle – a decentralized database service partnered with Zilliqa
Bolt – a media content delivery company bringing digital services in East Asia, SE Asia, and Africa.
Transact-train – a supply chain company
HG Exchange – a tokenized security that facilitates trades.
DMM – one of Japans largest internet companies. It uses the Zilliqa blockchain for smart contracts.
LayerX – a payments and smart contract company.
Asteria – a Japanese software company (and it’s us subsidiary Infoteria). They both use Zilliqa for dApp developing and consulting.
Note: during the ICO, Zilliqa issues an ERC-20 token which is currently being swapped out for their native ZIL token by the end of April. The swap will continue through June. No specific dates have been announced yet.
I purchased my ZIL tokens on Binance and Binance will automatically handle the swap for you when the time comes.
I have been accumulating Zilliqa in anticipation for that great exit from the Bear market we all are waiting for.