Key Takeaways
- Zilliqa (ZIL) is a public blockchain platform designed to address scalability issues faced by other blockchains like Ethereum.
- It utilizes a technique called sharding to split the network into smaller sections, enabling faster transaction processing and potentially reaching thousands of transactions per second.
- Launched in 2017, Zilliqa boasts a vibrant developer community and fosters the creation of decentralized applications (dApps) on its platform.
What Is Zilliqa (ZIL)?
Zilliqa (ZIL) is a blockchain platform known for its innovative approach to scalability and throughput. Founded in 2017 by a team of academics and researchers from the National University of Singapore, Zilliqa aims to solve the scalability issues faced by existing blockchain platforms like Bitcoin and Ethereum.
How Does Zilliqa (ZIL) Work?
Addressing Scalability
Unlike traditional blockchains where all transactions are processed by the entire network, Zilliqa utilizes sharding. This divides the network into smaller partitions called shards, allowing them to process transactions in parallel, significantly improving transaction speed and throughput.
While sharding enhances efficiency, it introduces the challenge of ensuring consistency across shards. Zilliqa tackles this using a consensus mechanism called PBFT, which ensures all nodes within a shard agree on the validity of transactions before they are added to the blockchain.
ZIL Token Utility
ZIL, the native token of the Zilliqa network, serves multiple purposes. It is used to pay for transaction fees and smart contract execution, incentivizing network participation.
Users can stake their ZIL tokens to become node operators, validating transactions and maintaining network security. In return, they earn rewards in the form of additional ZIL tokens. They can also participate in the governance of the Zilliqa network by voting on proposed changes and upgrades to the protocol.
Zilliqa (ZIL) Token And Tokenomics
Tokenomics
The ZIL token is Zilliqa’s native cryptocurrency. It is used for:
- Transaction Fees
- Staking
- Governance
Token Details
Total Supply 18,771,393,396 ZIL
Circulating Supply 17,372,203,179 ZIL
Current Price $0.03682
Market Capitalization $639,586,721
This information is current as of April 1st, 2024, and the token’s price, market value, and available supply may fluctuate.
Distribution
- Early & Community Contributions (30%):
- Private Sale (27.3%)
- Public Sale (2.7%)
- Mining Rewards (40%)
- Company, Team, and Agencies (30%):
- Team (5%) – Unlocked in January, 2019
- Advisors (3%)
- Strategic Sale (10%)
- Token Treasury (12%)
Additional Details
The team used the proceeds from sales for various purposes, including development, marketing, partnerships, and legal compliance.
Additionally, ZIL is no longer an ERC-20 token and operates on its native chain. However, it’s available as a BEP-20 token on Binance Smart Chain (BSC).
ZIL tokens are released gradually, with the full supply expected to be vested by June 2029. This inflationary token release model helps incentivize network participation and secure the blockchain.
Where Can I Buy Zilliqa (ZIL)?
Binance – Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
Gate.io – This exchange provides ZIL, other cryptocurrencies, and margin trading options.
Is Zilliqa (ZIL) A Good Investment?
Pros
- Scalability – Zilliqa uses sharding technology to address the scalability issue that plagues many blockchains.
- Security – Zilliqa utilizes a hybrid consensus mechanism that combines Proof-of-Work (PoW) and Byzantine Fault Tolerance (BFT) protocols.
- Smart contracts – While initially facing challenges, Zilliqa now supports smart contracts through its Scilla programming language.
- Partnerships – Zilliqa has established partnerships with various organizations, including institutions and businesses, which could potentially contribute to its adoption and growth.
Cons
- Limited adoption – Despite its features, Zilliqa still lags behind established platforms like Ethereum regarding user base and developer adoption.
- Technical complexity – Sharding technology, while innovative, can introduce additional complexity to the network.
- Competition – The cryptocurrency space is highly competitive, with numerous platforms vying for attention and market share.
Final Thoughts
Whether ZIL is a good investment for you depends on your circumstances. Before making investment decisions, consider your risk tolerance and research the broader cryptocurrency market. Zilliqa is a promising project with a strong technical foundation, but the platform’s future success remains to be seen.
