Zilliqa project under the radar (quick review)

Zilliqa project under the radar (quick review)

By qsyal | Crypto Pro | 21 Sep 2019


Introduction:

Blockchain scalability is a problem that  troubles many large projects including Bitcoin and Etheruem . We all remember  when the CryptoKitties craze in December 2017  started which caused the entire Ethereum blockchain to clog up creating a bottleneck of transactions and extremely hiked transaction fees. There a plethora of projects which trying to think out of the box to overcome this overarching blockchain's bloat problem  ,IOTA for example Abandoned the whole Blockchain system and and tries to build its own structure which called Tangle , but there is no quarantee that Tangle will succeed as Blockchain does .

Etheruem and many other projects are trying to use an innovative solution  to solve the scalability issue  which has become more serious day by day. The new solution called "sharding" technology and it is essentially a feature that allows blockchain to scale linearly as it grows . What a wonderful goal but is it really achievable?

Well in fact, there is one public blockchain that is already designed with sharding feature and effectively works ...It is Zilliqa...

Zilliqa (ZIL) is the first blockchain that effectively implements sharding, that means with Zilliqa’s approach, there could theoretically be no limit on the number of transactions processed per second.

These mind-blowing technology but how does it work? ...Well let me explain in this post

 

History of Zilliqa:

ZIL was created initially as an ERC-20 token on the Ethereum blockchain.  it had its private ICO in late 2017 that raised $12 million in ETH. Soon after the price of ETH rose significantly so that the funding received worth more than $20 million and the ICO had reached its hard cap.

In January 2018, Zilliqa also allocated 4445 ETH worth of ZIL to public sale and raised $22 million with tokens sold for $0.0038 each. You can see that the team is well funded .

 

What is the problem that Zilliqa solves?

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In short answer ,It is SCALABILITY , or the ability to process more transactions in shorter time.

Zilliqa is a sharding based blockchain. To realize what can sharding bring  let me make the following comparison :

With most other blockchains (like Bitcoin , Etheruim ...etc )as more nodes are put onto the network the more difficult  it is to reach consensus simply because  as these blockchains grow, processing transactions take longer time to occur 

On the other hand,   Zilliqa  rebuilds the blockchain system from the ground up .The structure they’re building has a hybrid consensus protocol that will raise productivity with every additional 600 nodes on the network. This works by dividing the work done on the network with throughput increasing for every 600 new nodes. The upshot of that  is a network that gets stronger with an increase in its size.

 

The technology behind Zilliqa

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Sharding  can break up the number of nodes on the network into these groups of 600 where each single group is a shard , this can  divide the work being done on the network as each shard is responsible for only a portion of the network transactions

The team has indeed done a lot of developments and tests on sharding technology and has reach some satisfying results :

With 1800 nodes, Zilliqa was able to process about 1200 transactions per second compare to Etheruim which has about 25000 nodes on its network and can ONLY process about 15  transactions per second !  These figures show how promising  sharding is .

Another amazing component af Zilliqa blockchain  is that Zilliqa leverages a hybrid consensus mechanism consisting of proof of work and Byzantine fault tolerance. Proof of work is not used as it is in traditional blockchain mining. Instead, each node begins by completing a proof of work hash.

This mechanism does not led to any blockchain reward but instead it is used to confirm the nodes identity. By urging nodes to confirm their identity the Zilliqa network avoids any potential Sybil attack as  an attacker would forge multiple fake identities in an attempt to overwhelm the network. 

Much like Etheruem, external developers can also code smart contracts on the Zilliqa blockchain. Zilliqa team have developed their own language which is used to program these contracts. It is called “Scilla”.  It is a functional programming language that allows for static checks and formal verifications  this helps programmers and users alike  to verify a contract is safe before using it.  “Scilla” addresses several known security flaws  in existing languages it also comes with its own library of standard operations, without the need to depend on external programming libraries.

 

Zilliqa team and community: 

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The Zilliqa team  consists  of PhDs in computer science with an academic background. The team has seen some changes but it seems to be stable now, Zilliqa advisory board includes Zilliqa founders Xinshu Dong and Prateek Saxena , as well as many prominent blockchain notables: Loi Luu, Co-founder of Kyber Network; Vincent Zhou, Founding Partner of FBG Capital; and Alexander Lipton, Founder and CEO of StrongHold Labs. Thay  have been quite busy at work something  can be obviously evidenced their GitHub repository.

Zilliqa has one of the most active and involved community in the cryptospace . It has about 23,000 members on Telegram live-chat and more than 66.000 flowers on Twitter .There is a decent number of readers and comments  on Reddit too. This kind of community involvement is one of the strengths of Zilliqa and will support it to go forward. Zilliqa has been steadily creeping up the ranking on coinmarketcap something shows how zilliqa promising is.

 

Conclusion: 

scalability is One of the biggest challenges for blockchains right now, if not the biggest challenge, While other blockchains are looking for stopgap measure to temporary fix this problem , Zilliqa is taking a long-term strategic approach to inherently solve the sacalability issue  once and for all.  Certainly there are great challenges.For example, Although sharing mechanism is theoretically unlimited but in practice the team is facing many problems with broadcast once the network scales to about than 1 million nodes. Another serious challenge is the fierce competition with other projects, led by Ethereum itself which seems to be working on its own version of sharing mechanism to solve scalability problem too . However I think with great technology and tremendous efforts by the team, I think it is fair to say that this Zilliqa has the opportunity to be the first to solve the problem that Etheruim was unable to do. 

 

Disclaimer:

The information mentioned herein is for educational purposes only.
This is NOT financial advice and you have to do your own research if you want to make any investment
Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss and you should be AWARE of that...

 

 

THANK YOU READING :)

9-21-2019

Regards


qsyal
qsyal

blogger


Crypto Pro
Crypto Pro

Away from SCAM projects which become a dime a dozen out there ...I always try to make light and depth-in reviews in REAL crypto world

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