Zilliqa (ZIL): The Gold Standard in Blockchain Scalability
29 October 2020
Over the last decade, blockchain technology has matured in terms of its underlying performance and core infrastructure. However, when it comes to using blockchain for enterprise applications, there have been a few bottlenecks in terms of scalability and throughput.
Zilliqa is a public blockchain and cryptocurrency project that aims to transform the digital infrastructure suitable for the global community. Zilliqa commits itself to offer a scalable and secure platform for businesses and developers to build enterprise-grade decentralized applications (DApps).
[caption id="attachment_8570" align="alignnone" width="1024"] Source: Zilliqa[/caption]
At its core, Zilliqa employs the sharding technology that improves the blockchain scalability by multiple times with successful rapid transaction processing. Sharding is a popular concept in the blockchain space that breaks the blockchain into several smaller components.
All these components work in parallel to the blockchain mainnet thereby swiftly handling multiple transactions at the same time. This is unlike the regular blockchain network that processes transactions one after the other.
[caption id="attachment_8571" align="alignnone" width="1024"] Source: Zilliqa (ZIL) Transactions per Second[/caption]
Zilliqa is the first blockchain network to implement Sharding on such a large scale. There are different forms of sharding in the Zilliqa network like network sharding, transactional sharding or computational sharding. Of these, the network sharding remains the most critical as on date.
Scilla: Powering Smart Contract Scalability
Scilla, the smart contract programming language that is safe by design powers the Zilliqa network. Scilla uses different functional programming design principles that offer a secure environment besides being friendly for formal verification.
The Scilla programming language doesn’t focus on loops and conditional statements but instead focuses on data flow and functional programming. This helps the Zilliqa network deliver better transactional throughput per second, in comparison to Ethereum.
The Zilliqa network employs a hybrid Proof-of-Work (PoW) consensus mechanism for establishing mining identities and performing sharding. Note that unlike the typical PoW blockchain network, Zilliqa uses the practical Byzantine Fault Tolerant (pBFT) protocol to mine each shared. This mechanism delivers higher throughput while simultaneously guaranteeing the finality of block agreement.
Zillings (ZIL): Zilliqa's Native Cryptocurrency
Zillings is the native cryptocurrency token of the Zilliqa network with a ticker symbol ZIL. The ZIL tokens have a number of applications like mining rewards, transaction fees, as well as smart contract execution.
Similar to Bitcoin, the total supply of the ZIL tokens is fixed - albeit, at 21 billion ZIL vs. 21 million BTC. Of this, 6.3 billion ZIL tokens were distributed to founders, early investors, Zilliqa Research, and other supporting organizations. Another 6.3 billion ZILs were distributed during Zilliqa’s token generation event in January 2018. The remaining 8.4 billion tokens have been given as mining rewards.
[caption id="attachment_8572" align="alignnone" width="1024"] Source: Zilliqa (ZIL) Blog[/caption]
Currently, the ZIL tokens are traceable on a large number of cryptocurrency exchanges like Binance, Bithumb, OKEx, Huobi, and BITBOX. The ZIL tokens are widely traded in trading parts with BTC, ETH, and USDT. Besides, Transak offers a simple and easy way to purchase ZIL against fiats like EUR, INR, or GBP. Transak is supported by several web-based browsers like Safari, Firefox, and Google Chrome.
At press time, each ZIL token is trading at a price of $0.01775. The total circulating supply of ZIL tokens is 10.5 million while the total market cap of ZIL is $187 million. At present, the ZIL tokens have a daily trading volume of over $20 million.
The Zilliqa blockchain also supports non-custodial staking of the ZIL tokens with several lucrative offers that can drive more utility and value into Zilliqa’s circular economy. Recently, Zilliqa has also introduced its governance token (gZIL) allowing long-term holders to be a part of the decision-making community of the Zilliqa ecosystem.
[caption id="attachment_8573" align="alignnone" width="1024"] Source: Zilliqa[/caption]
The introduction of the governance ZIL token (gZIL) is part of Zilliqa’s plan to expand its footprint in the Decentralized Finance (DeFi) market. The Zilliqa Improvement Proposal (ZIP-11) provides complete details of the platform’s non-custodial staking service.
Zilswap DEX: Zilliqa's Decentralized Exchange
As previously noted, Zilliqa has been recently making its moves in the DeFi space. On October 5, 2020, the Zilliqa blockchain network announced its new decentralized exchange Zilswap in partnership with Switcheo. The on-chain Zilswap DEX has an automated market maker (AMM) built atop the permissionless liquidity protocol.
[caption id="attachment_8574" align="alignnone" width="780"] Source: CoinQuora[/caption]
The AMM will allow ZIL token holders to trade directly on the Zilliqa blockchain via the wallets. Besides, users can also contribute as liquidity providers by adding the ZIL tokens to the liquidity pools and earn rewards.
The Singapore-based Zilliqa blockchain has also launched the Singapore-Dollar (SGD) backed stablecoin, XSGD, in partnership with financial service provider Xfers. Thus, the first token pool on the platform will be ZIL-XSGD.
Explaining the immediate future plans with Zilswap, Switcheo wrote: “We’ll also be launching a ZRC-2 governance token for Zilswap soon. Moving forward, Zilswap will transition control of Zilswap to a DAO controlled by ownership of the governance token. Parameters such as protocol fees will be under the purview of this DAO. Governance tokens will be issued to liquidity providers and users of the Zilswap platform”.
Zilliqa's Partnerships in the Financial Sector
Over the past few years, Zilliqa has been associated with several important partners from the world of finance:
In order to establish an ecosystem of blockchain-based insurance, Zilliqa has joined hands with an online insurance broker Insurance Market, regional insurance group FWD, and Deloitte.
2. Enterprise Software
In August 2018, Zilliqa partnered with Japanese enterprise software company Infoteria allows the latter’s clients to get a hands-on experience with the Zilliqa blockchain platforms and its DApps.
3. Financial Tech
In 2019, Zilliqa entered a partnership with Singapore-based FinTech startup Xfers with the goal of developing blockchain-based payment applications. Earlier this month, the two partners launched the Zilliqa powered XSGD stablecoin.
Looking Forward: Zilliqa Set to Disrupt the Payments Industry
The ultimate goal of Zilliqa is to take-on the existing giants of the payments industry like Visa and MasterCard. Zilliqa wants to make its blockchain network capable of handling much higher transactions than Visa.
Currently, Visa processes around 8,000 transactions every second worldwide. On the other hand, Zilliqa can process nearly 2500 transactions. Using its scalable Scilla language, Zilliqa aims to expand its network capabilities to serves a large number of users within its ecosystem.
With its ZILHive initiative, Zilliqa aims to bring all members together with different programs like accelerator, grants and educational.