Zilliqa is a blockchain platform that uses a sharding approach to address scalability challenges found in many other distributed ledgers. By using a sharding consensus method, connected chains can process transactions at the same time, which raises total network throughput. 

Beyond improving scalability, Zilliqa offers developer tools to support the building and long-term scaling of decentralized applications (dapps), decentralized finance services (DeFi), and NFT (non-fungible token) marketplaces. The network reaches consensus for transactions and contract execution through a hybrid PoW-PBFT design. The platform has also rolled out staking and yield farming solutions. 

Zilliqa created a proprietary, security-oriented smart contract language called Scilla. With it, developers can build and deploy decentralized applications that can be tailored to mirror real-world services.

The ZIL Token powers the platform. This utility token is used to run smart contracts and pay transaction fees on the Zilliqa blockchain. Tokens are also distributed as rewards to PoW (proof-of-work) miners who contribute compute resources, and to stakers through interest-like gains. A well-known and promising crypto project, Zilliqa [ZIL] market price is followed on many crypto investors’ and traders’ watchlists. 

Zilliqa was introduced in June 2017 by Amrit Kumar and Xinshu Don, researchers from the National University of Singapore leading the effort. Since January 2019, the network has operated with a live mainnet. 

In 2017, the project held an Initial Coin Offering (ICO), raising more than $22 million in ETH.

How Does Zilliqa [ZIL] Operate?

Like many other crypto networks, Zilliqa supports smart contracts, transaction verification and settlement, and the issuance of crypto tokens.

Using the Scilla programming language, developers can run smart contracts and create new decentralized applications for delivering different products and services.

Although the setup can seem intricate, Zilliqa is designed to execute smart contracts and confirm network transactions in a way that is scalable and efficient.

Zilliqa’s standout characteristics include sharding and a Byzantine fault tolerance consensus protocol. 

Sharding

Sharding is intended to boost blockchain performance and capacity. Instead of requiring all nodes to handle every transaction, Zilliqa divides the network into shards (chunks of information). Each shard processes a portion of transactions and needs only a small number of miners working on them at any moment.

Each shard functions like its own chain, letting its assigned nodes store data, execute transactions, and append new blocks to that shard’s chain, referred to as micro-blocks.

Those micro-blocks are then aggregated into a transaction block by directory service nodes (DS nodes), which are written to the Zilliqa blockchain.

Shard nodes store only a portion of the Zilliqa blockchain, so they are not expected to keep the entire historical record of Zilliqa.

Practical Byzantine Fault Tolerance (PBFT)

Zilliqa relies on proof-of-work to secure the network, and it also uses a two-layer blockchain structure to make computational resources more effective. To establish an identity or join sharding, a user must provide proof of work, but that alone isn’t sufficient for consensus. Zilliqa therefore uses a consensus approach called Practical Byzantine Fault Tolerance or PBFT. 

Under PBFT, nodes are organized into groups and coordinated by a single main node known as the Leader. The Leader handles broadcasting transactions and decisions. Once two-thirds of the nodes within the shard vote, the Leader finalizes the result. Leader roles rotate continuously to reduce the risk of harmful leaders influencing the network.

To allow node operators to manage the blockchain and vote on protocol changes, operators must stake their ZIL-so anyone holding ZIL tokens can participate in network governance. With PBFT, all nodes assigned to particular shards must agree before the micro-block is completed and added into a transaction block.

Afterward, each node earns a portion of the block reward for validating transactions.

What is ZIL Token?

ZIL is a utility token required to run smart contracts and pay transaction commissions on the Zilliqa platform. ZIL tokens also serve as rewards for PoW miners and stakers who contribute network resources. Holding ZIL gives you access to every dApp and platform service built on the Zilliqa blockchain. ZIL can also be used to pay for products and services, trade NFTs, and more. Note that the ZIL market price can move sharply in either direction.

Where to get ZIL Crypto?

Zilliqa [ZIL] is listed and traded on many crypto exchanges, including both centralized and decentralized platforms. Centralized exchanges let you buy ZIL Token using fiat currencies like US dollars or Euros. Decentralized exchanges enable you to trade your existing crypto holdings for ZIL. Widely used and trusted Zilliqa markets include Gate.io, Binance, Hotbit, Bitvavo, and many other exchanges. 

Where to Store Zilliqa [ZIL]?

A crypto wallet is either a hardware device or software application that stores and secures your cryptocurrency. Think of it as a personal online account for your assets that only you can access. It prevents unauthorized users from freezing or taking ownership of your crypto.

Zilliqa [ZIL] can be stored in multiple wallet options, and some even support ZIL staking. These include Moonlet, ZILPAY, Ledger, Atomic Wallet, Guarda Wallet, and ZILLET, along with other choices. 

Is ZIL Minable? 

Zilliqa [ZIL] can be mined. ZIL mining uses a distinct method that merges proof-of-work for Sybil resistance with practical byzantine fault tolerance for reaching agreement.