What is Zilliqa?
Zilliqa (ZIL) describes itself as a “next-gen, high-throughput blockchain platform,” offering advancements on multisignature and smart contract functionalities originally employed by both bitcoin and Ethereum. Zilliqa was programmed to counter the problem of scalability, meaning the properties of its network change with its size in order to assure that it can maintain a consistently fast transaction speed. Its transaction times remain lightening-quick regardless of the burden of demand placed upon the network. For instance, if Zilliqa had the same number of nodes that Ethereum currently has, it is estimated to still run approximately 1,000 times faster than Ethereum.
History of Zilliqa
The idea for Zilliqa originated in 2017 at the hands of a group of Chinese and Indian blockchain programmers / computer engineers. The whitepaper for Zilliqa was published in August of that year and offered a revolutionary take on the idea of how to best design a coin with scalability in mind. The Zilliqa team has a large staff, several advisors, and an extremely consistent social media / promotional campaign.
Starting in the form on an Ethereum-based token, Zilliqa hit the crypto markets on January 26, 2018 to much fanfare, seeing close to $4.9 million in trading volume within its first 24 hours of release. By February 1st, it had achieved a $500 million-plus market cap, making it one of the biggest and fastest growing coins to ever hit the crypto markets. In May 2018, Zilliqa released their platform testnet to the public, with plans for a beta net launch by the end of the year.
How Zilliqa Works
Like other 2nd-generation “platform coins” before it, such as NEM, Ethereum and NEO, Zilliqa offers many functionalities not enjoyed by older coins such as bitcoin and Litecoin. Unlike both bitcoin and Ethereum, as the number of nodes actively supporting Zilliqa increases, so does its network transaction capacity. This is achieved through Zilliqa’s novel Proof of Stake (PoS) blockchain design which employs a Schorr Signature hashing algorithm, previously unseen in cryptocurrency security design.
There will be a total of 12.6 billion Zilliqa eventually mined into existence. Mining is dependent upon the classic PoS reward system that issues new coins to staking addresses according to the proportion of coins held per address.
- Novel hashing algorithm allows for extremely fast transaction times
- Designed with scalability in mind; transaction capacity increases in accordance with number of active nodes
- Advanced multi-signature and smart contract functionalities
- Schorr hashing algorithm ensures transactions are non-malleable, offering an elevated level of transaction security