The cryptocurrency industry is not just about buying and selling coins and tokens. You can do many other things with your crypto, and thousands of crypto enthusiasts want to take their passion a step further by creating decentralized projects. This is where the Zilliqa blockchain can come in handy.
But what exactly is the Zilliqa blockchain, what does it offer, and why is it becoming one of Ethereum’s big competitors?
What is Zilliqa?
Launched in 2017 by university researchers Amrit Kumar and Xinshu Dong, Zilliqa can be used for many reasons by investors and developers alike. Like Ethereum, this blockchain facilitates smart contract technology to reduce transaction times and lower fees. Zilliqa uses Scilla, a smart contract language, to make this possible.
In terms of DApp creation, Zilliqa is a great option. Developers can enjoy greater scalability and faster transactions with Zilliqa (which we’ll discuss shortly) while also being part of a fast-growing ecosystem with a lot of potential.
The Zilliqa blockchain has always been about scalability. However, as the popularity of the crypto industry grows, blockchains are getting clogged with an overwhelming number of transactions. This is a problem seen by the most valuable crypto in existence, Bitcoin, and developers across the market are now looking for ways to address this issue.
That’s why Zilliqa uses a technique known as sharding. So what exactly does this imply?
Zilliqa Blockchain Snippets
The sharding process involves dividing one blockchain into multiple blockchains, with each blockchain having its own purpose and unique data storage.
The main reason sharding is used is to combat scalability issues plaguing the cryptocurrency industry. By distributing network traffic across multiple chains, it is much easier to avoid a backlog of unvalidated transactions, thus reducing transaction times. Today we will not delve into fragmentation, but you can read about how sharding works in another of our pieces.
The thing to note about Zilliqa’s sharded network is that it offers significantly lower transaction times than most other popular blockchains, which is no doubt seen as an advantage by many cryptocurrency enthusiasts.
However, some people speculate that the use of sharding poses a security risk. If each blockchain shard is unique and works independently, there is a chance that a blockchain can be more easily infiltrated or corrupted. The compromised blockchain could be used to take over the other blockchain shards within the network. But this has not yet happened to the Zilliqa ecosystem.
Zilliqa Native Currency
Like the blockchain itself, Zilliqa’s native currency is also called Zilliqa or ZIL. We will refer to this crypto as ZIL in this article to differentiate it from the blockchain itself. Within the Zilliqa network, ZIL can be used to pay transaction fees, giving it its own purpose beyond store of value. Like any other cryptocurrency, Zilliqa can also be bought and sold on decentralized exchanges like Coinbase and Binance.
In March 2022, the price of ZIL began to grow in anticipation of the upcoming blockchain project “Metapolis”. As you may have guessed, this is related to the metaverse, a virtual world which has excited many netizens. Metapolis will function as a space where users can build virtual worlds, and the announcement of this new company resulted in a huge price increase for ZIL.
However, ZIL is still not particularly highly valued at the moment. It is still priced at less than a dollar, but this does not mean that it is an unpopular coin. With a trading volume of almost $1 billion in 24 hours, it is safe to say that ZIL has secured a comfortable place in the crypto market for the time being.
Gambling at Zilliqa
The Zilliqa blockchain is not only great for creating DApps. If you own a cryptocurrency, you can use Zilliqa to stake and earn a passive profit from the funds you already have.
The fact that Zilliqa offers staking may sound a bit confusing, as the blockchain itself uses a proof-of-work protocol known as the Practical Byzantine Fault Tolerance Mechanism. This mechanism involves the use of primary and secondary nodes and allows consensus to be reached even when malicious nodes are present.
You will usually find stakes on blockchains that use the proof of stake protocolbut Zilliqa’s protocol is not the same as that used in Bitcoin or Dogecoin, meaning it can still offer staking.
ZIL can be staked on various betting platforms including KuCoin, Atomic Wallet, Everstake and Zilliqa. If you use Zilliqa to stake ZIL, you can currently earn a reward of over 14%, which is quite generous. As you may have guessed, Zilliqa offers the highest staking reward compared to other platforms available.
You can also choose from six wallets for ZIL staking, including Guarda Wallet, Atomic Wallet, and Ledger.
NFTs in Zilliqa
Zilliqa has its own art market, the Zilliqa Market, allowing artists to sell their work. You might think that this marketplace would only be suitable for NFTs, but Zilliqa actually makes it easy to sell physical artwork alongside virtual ones. So if you create paintings or sculptures, you can make a profit by selling them in the Zilliqa market.
The Zilliqa marketplace also allows NFT artists to connect with their fans by creating their own unique store within the marketplace and even allows artists to combine physical and virtual artwork.
Zilliqa also allows users mint their own NFTs, which means that an artist can mint and sell their artwork within the same network. To pay for the minting process, you will need some ZIL on hand, so you need to purchase the amount of ZIL required for the minting fee beforehand. At the time of writing, Zil Exchange it is the host of most ZIL-based NFTs.
Zilliqa’s diverse and ever-changing ecosystem has a bright future
The Zilliqa Network offers cryptocurrency owners and developers the opportunity to expand their portfolios and build projects without the added frustration of high fees or long transaction periods. Without the dark cloud of scalability limitations hanging over the Zilliqa ecosystem, there is no telling how far it can go within the crypto industry.
Who knows, we may even see Zilliqa overtake Ethereum at some point in the future!
What is Ethereum and how does it work?
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