The cryptocurrency industry is more than just buying and selling coins and tokens. You can do countless other things with your cryptocurrency and thousands of crypto enthusiasts want to take their passion one step further by building decentralized projects. This is where the Zilliqa blockchain can be served.
But what exactly is the Zilliqa blockchain, what does it offer, and why has it become one of Ethereum’s major competitors?
What is Zilliqa?
Launched in 2017 by university researchers Amrit Kumar and Xinshu Dong, Zilliqa can be used for a variety of reasons by investors as well as developers. Like Ethereum, this blockchain enables smart contract technology to reduce transaction times and reduce fees. Zilliqa uses Scilla, a smart contract language, to make this possible.
In terms of building DApps, Zilliqa is a great choice. Developers can enjoy scalability and faster transactions by using Zilliqa (which we will discuss shortly) and being part of a fast-growing ecosystem with lots of potential.
The Zilliqa blockchain has always been focused on scalability. However, as the popularity of the cryptocurrency industry grows, blockchains are becoming congested with an overwhelming number of transactions. This is a problem seen by the most valuable cryptocurrency out there, Bitcoin, and developers across the market are now looking to solve it.
This is why Zilliqa uses a technique known as sharding. So what exactly does this entail?
Zilliqa Blockchain Fragments
The sharding process involves dividing a blockchain into multiple chains, with each chain having its own purpose and unique data storage.
The main reason sharding is used is to combat the scalability issues that are plaguing the crypto industry. By spreading network traffic across multiple chains, it is much easier to avoid a backlog of unconfirmed transactions, which reduces transaction times. We won’t go into sharding today, but you can read about how sharding works in another of our articles.
What you need to note about Zilliqa’s fragmented network is that it offers significantly lower transaction times than most other popular blockchains out there, which is certainly considered by many crypto enthusiasts. a plus.
However, some individuals speculate that the use of sharding poses a security risk. If each blockchain shard is unique and operates somewhat independently, there is a chance that a blockchain is more susceptible to being hacked or corrupted. The compromised blockchain can then be used to take over other blockchain segments in the network. But this has yet to happen with the Zilliqa ecosystem.
The native coin of Zilliqa
Like the blockchain itself, Zilliqa’s native coin is also known as Zilliqa, or ZIL. We will refer to this cryptocurrency as ZIL in this section to distinguish it from the blockchain itself. Within the Zilliqa network, ZIL can be used to pay for transaction fees, providing a purpose beyond just storing 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 started to increase in anticipation of the upcoming blockchain project “Metapolis”. As you might have guessed, this has to do with the metaverse, a virtual world that has excited many internet users. Metapolis will act as a space where users can build virtual worlds, and the announcement of this new venture has resulted in a massive bull run for ZIL.
However, ZIL still doesn’t have a particularly high value at the moment. It’s still under a dollar, but that doesn’t mean it’s an unpopular coin. With a 24-hour trading volume of almost a billion dollars, it is safe to say that ZIL has secured itself a comfortable position in the crypto market at the present time.
Set foot on Zilliqa
The Zilliqa blockchain is not only great for building DApps. If you are a cryptocurrency owner, you can use Zilliqa for staking to make a passive profit from the money you already have.
The fact that Zilliqa offers staking sounds a bit confusing, since the blockchain itself uses a proof-of-work protocol known as the actual Byzantine Fault mechanism. This mechanism involves the use of both primary and secondary nodes and allows consensus to be reached even in the presence of malicious nodes.
Typically, you will see staking on blockchains that use the proof-of-stake protocol, but Zilliqa’s protocol is not the same as that used on Bitcoin or Dogecoin, meaning it can still provide a staking protocol. bet.
ZIL can be staked on various staking platforms, including KuCoin, Atomic Wallet, Everstake, and Zilliqa itself. If you use Zilliqa to staking ZIL, you can currently earn a bonus of over 14%, which is quite generous. As you might have guessed, Zilliqa itself offers the highest staking rewards compared to other available platforms.
You can also choose between six wallets for staking ZIL, including Guarda Wallet, Atomic Wallet, and Ledger.
NFT on Zilliqa
Zilliqa has its own art marketplace, the Zilliqa Marketplace, which allows artists to sell their work. You might think that this marketplace would only be suitable for NFTs, but Zilliqa actually facilitates the sale of real works of art alongside virtual ones. So if you create paintings or sculptures, you can make a profit by selling them on Zilliqa’s marketplace.
Zilliqa marketplace also allows NFT artists to connect with their fans by creating their own unique store in the marketplace and even allows artists to pair real and virtual artworks with together.
Zilliqa also allows users to mint their own NFT, which means an artist can mint and sell their artwork in the same network! To pay for the minting, you will need some ZIL for delivery, so you must pre-purchase the required amount of ZIL for the minting fee. At the time of writing, ZilSwap is the host of the most ZIL-based NFTs.
Zilliqa’s diverse and ever-changing ecosystem has a bright future
The Zilliqa network offers crypto holders and developers the opportunity to expand their portfolio and create projects without incurring additional high fees or long transaction times. Without the dark cloud of scalability limits hanging over the Zilliqa ecosystem, there is no telling how far it can go in the crypto industry.
Who knows, we might even see Zilliqa overtake Ethereum at some point in the future!
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