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Choose your quick section of our Zilliqa review below.
A Quick Overview of our Zilliqa Review:
Zilliqa is one of few blockchain platforms that makes use of functioning sharding, allowing the blockchain to scale in a linear way as the network continues to grow.
Zilliqa Live Price
What is Zilliqa?
Zilliqa is a third-generation platform and public, permissionless blockchain designed to offer high throughput and the ability for thousands of transactions to be executed per second. Zilliqa aims to solve the issue that many other blockchains face with scalability and speed by using sharding technology.
Key Features and Takeaways of Zilliqa
Zilliqa went live in March 2018 and it has become one of the most popular and reputable projects in the crypto space. Zilliqa has some of the following key features and takeaways:
Zilliqa is one of few blockchain platforms that makes use of functioning sharding, allowing the blockchain to scale in a linear way as the network continues to grow.
The use of sharding technology is an innovative and fundamental change in how blockchains reach consensus. The solution attributable to sharding scales alongside the size of the Zilliqa network which means that, in theory, there is no limit on the number of transactions per seconds that could be processed.
However, this is contrasted by the fact that the number of transactions processed on Zilliqa will depend on the number of nodes that are present on the network.
The scalability issue that Zilliqa solves is done through a hybrid consensus protocol that increases throughput with every extra 600 nodes in the network.
The Zilliqa blockchain works by dividing the work which is carried out with throughput increasing for each 600 new nodes. However, this is only in theory as there are problems faced when the network scales to more than 1 million nodes.
Each group of 600 nodes is known as a shard and this forms part of the larger picture known as sharding technology. These shards divide the work being carried out, and as the network grows, the more shard will become available.
Every shard creates a microblock that contains the transaction that it is processing. All shards process transactions in parallel and at the end of this parallel processing, is the DS Epoch, when microblocks are formed into a full block, which is added to the blockchain.
The DS Epoch has its own Committee which consists of a group of people who are randomly selected nodes that act to manage all other shards. The DS Community has the responsibility of deciding on the transactions that are assigned to shards.
Once microblocks have been created, the DS committee of Zilliqa must create the full block and commit it to the blockchain.
Smart contracts and DApps are a technical hurdle where sharding technology is involved as result of a reliance on external sources of data, functions, and several other variables. For Zilliqa to incorporate these components, it means that there is a significant amount of communication between shards.
Smart contracts were released on Zilliqa in 2019 and it uses a safe by design smart contract language called Scilla.
In addition, Zilliqa also makes it possible for developers to create decentralised applications by taking advantage of Scilla, which gives developers a significant amount of flexibility and versatility.
Zilliqa Mining
Zilliqa uses a hybrid consensus mechanism that consists of a Proof of Work (PoW) and Byzantine Fault Tolerance (BFT). While the Proof of Work is not actively used as it would be in traditional mining, every node must begin by completing a Proof of Work hash.
This process does not involve a blockchain reward but is used to establish the identity of the node. The Zilliqa network therefore forces machines to establish their identity and subsequently avoids any potential Sybil attack. Sybil attacks involve bad actors who create multiple identities to try and overwhelm the network.
Once the identity of the node is proven through the Proof of Work, the node is assigned to a shard. Shard then find consensus through the BFT, a high-throughput consensus mechanism that has finality.
Seeing that this consensus relies on finality, most of the 600 nodes in a shard must agree on the microblock or it will be rejected. Once the microblock has been confirmed and it is added to the final block, it becomes the only block that can reference the block before it.
As result of this process, forking is not possible in the BFT consensus with finality. This is one of the reasons why so many other blockchains are transitioning to the BFT consensus.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| Zilliqa uses advanced sharding technology to increase scalability | Even though there is no limit on the number of transactions in theory, in practice there is a limit on the number of nodes |
| Transactions are processed fast | A major hurdle in the development of Zilliqa has been the inclusion of smart contracts, especially as it uses sharding technology. |
| Zilliqa uses a PoW and BFT consensus to secure the network | Zilloqa is not Turing complete and cannot be used to create applications |
| Zilliqa supports the use of smart contracts by using Scilla, which adds a substantial number of benefits to the platform | |
| Zilliqa has a sold team behind it and there is a lot of room for development |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Trading Fees | From 0.08% to 0.75% |
| Withdrawal Fees | 10 ZIL |
Should you buy Zilliqa?
Zilliqa was created as a competitor to Ethereum with the purpose of solving the scalability issue by using sharding technologies. However, using sharding makes it challenging to support the creation of smart contracts and DApps, a technical hurdle that Zilliqa has overcome by using the programming language Scilla.
In addition to the innovative technology that Zilliqa employs and the potential for future growth, Zilliqa also has several important partnerships that adds to its credibility and investment potential.
Zilliqa is one of the crypto projects which are considered a valuable addition to the diversified portfolio of any investor.
How to buy Zilliqa (ZIL)
Step 1 – Register an account with Gate.io
Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.
Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.
Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.
Log into your account using your credentials and complete the reCAPTCHA.
Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.
Before you can use the platform to purchase Zilliqa/ZIL and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.
Click on “KYC Now” at the bottom of the webpage to start the process.
Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.
Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.
Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.
Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.
Once you have done this, click on “Confirm and Submit”.
Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.
On the new page that loads, select “Click here” to set up Two-factor Authentication.
Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.
Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.
Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.
Step 2 – Deposit funds
You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.
ZIL can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.
Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.
You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.
Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading ZIL.
Step 3 – Explore your trading options
Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.
To start trading ZIL, select the option from the “Trade” Menu. Enter “ZIL” into the search bar to see which trading options are available.
For spot trading, for instance and as an example, select ZIL_USDT. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair ZIL/USDT.
Here, you will see that you have the option to buy or sell ZIL either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.
Step 4 – Buy ZIL through via Limit Order
To buy ZIL and create a limit order for it, you can enter the amount of ZIL you want to purchase, and the price you want to buy it at in USDT. This tool will tell you what the overall cost is in USDT, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.
Step 5 – Sell ZIL through via Limit Order
To sell ZIL, find the panel under the chart and create a limit order for USDT according to your own preferences. Note that with a peg to USD, ZIL that you exchange for USDT will hold the flat value that it has despite market conditions in the cryptocurrency market.
Step 6 – Withdraw funds
To withdraw funds, you will use the same page in Gate.io which was used to make a deposit.
Click on the deposit/withdrawal option on your Account dropdown and find the wallet of the currency that you wish to withdraw. You can do this easily by using the search bar provided.
Instead of a deposit address being generated, you will do this on the exchange, or the wallet being used as the destination for withdrawal of funds from Gate.io. Paste the address of the receiving wallet in the field provided and provide your Gate.io fund password, email code, and TOTP before selecting “Submit Request”.
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Frequently Asked Questions
When was Zilliqa first launched?
Zilliqa was launched in 2018.
Who founded Zilliqa?
Zilliqa was established by Prateek Saxena.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was Zilliqa’s ICO and how much did it raise?
Zilliqa had a private ICO in late 2017 along with a small public offering early in 2018.
Is Zilliqa legit?
Yes, Zilliqa is legit.
What is Zilliqa’s total supply?
The total supply of ZIL is 21 billion tokens.
What is the purpose of Zilliqa?
To achieve high throughput and to provide users with a decentralised, secure, scalable platform and offering developers of smart contracts and DApps with versatility and freedom.
On which blockchain is Zilliqa based?
ZIL is an ERC20 token based on the Ethereum blockchain.
Does Zilliqa work with smart contracts?
Yes, Zilliqa incorporates smart contracts by using Scilla.
Does Zilliqa have potential to become more valuable?
Yes, Zilliqa has the potential to become more valuable as it offers developers and users with innovative blockchain solutions.
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