Introducing Zilliqa (ZIL) — Bringing blockchain scalability to new heights with Sharding
Bitcoin laid the foundation of a new global decentralized financial system, but the question is — Is bitcoin truly a global currency? Unfortunately, the answer is — Not Yet! One of the fundamental problems with bitcoin protocol is its lack of scalability. Bitcoin can only handle up to 7 transactions per second because the bitcoin’s consensus algorithm, which is Proof of Work (PoW), takes a lot of computing power to process the blocks and maintain the bitcoin blockchain.
Many companies presented various solutions to curb this scalability problem and we saw a tremendous growth in cryptocurrencies aiming to solve this problem with various techniques. Most of the blockchain companies realized that the main problem is the consensus algorithm used in the current blockchain protocols, which limits the number of transactions per second due to the sheer complexity and computational resources that are required. Since then, we have seen a new array of various consensus algorithms like Proof of Stake (PoS), Byzantine Fault Tolerant (BFT) algorithms, and different variances of PoS like Distributed PoS, DPoS, etc.
However, very few companies are working on the actual optimisation of the current blockchain protocols to make them more scalable and robust. We need scaling solutions for the existing blockchain protocols, so that billions of people could use them with all their benefits without the huge amounts of network congestion. Considering the mass adoption that many platforms already achieved, we have to improve bitcoin, ethereum and all the protocols so they can become robust and usable at a larger scale.
Zilliqa is a new blockchain platform focused on a well known scaling method called ‘Sharding’, which is a new technique involving the process of dividing a blockchain network into “shards” that can process transactions at the same time in parallel which enhances scalability and reduces the amount of computing power needed for those processes to work. With Sharding, the transactions are divided into chunks so that more miners can work on them in parallel, instead of waiting for each one of them to finish processing. Not only the transactions, but the blocks are also divided into different chunks so that more miners can work on a single block, which decreases the block times significantly that allows more transactions to settle on the network.
With multiple shards working on their respective consensus processes in parallel, this is a more efficient way to generate blocks instead of the entire network of miners working on a single block together. In Zilliqa’s design, the computationally intensive Proof of Work (PoW) process is only required periodically while the main consensus algorithm does not require much computation. With Sharding, Zilliqa achieved a throughput of 2828 transactions per second in its test net and plans to achieve more in the mainnet.
Zilliqa blockchain has a native currency called ZIL. As of mid September 2019, a single ZIL is trading for $0.0070 USD and it has surpassed a total market cap of $60 Million USD with a daily 24h trading volume of just over $8.3 Million USD. Based on its reputation and the kind of problems Zilliqa is trying to solve, we recommend this to any investors who wants to have a diverse portfolio of cryptocurrencies.