Zilliqa is a high-performance public blockchain designed to solve one of the most persistent challenges in the cryptocurrency space: scalability. As older networks like Bitcoin and Ethereum struggle with slow transaction speeds and rising fees during peak usage, Zilliqa offers a next-generation solution through innovative sharding technology. This enables faster processing, higher throughput, and a more efficient platform for decentralized applications (dApps) and smart contracts.
With its unique architecture and forward-thinking design, Zilliqa has positioned itself as a strong contender in the third generation of blockchain platforms—those focused on performance, security, and real-world usability.
How Does Zilliqa Work?
At the core of Zilliqa’s innovation is sharding, a method that divides the network into smaller, parallel-processing units called shards. Each shard processes transactions independently, allowing the network to scale horizontally: the more nodes join, the more shards can be created, and the higher the overall transaction throughput becomes.
This approach contrasts sharply with traditional blockchains where every node must validate every transaction—a process that becomes increasingly slow and resource-intensive as the network grows.
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The Two-Layer Consensus Mechanism
To maintain security while achieving speed, Zilliqa uses a hybrid consensus mechanism combining Practical Byzantine Fault Tolerance (pBFT) with Proof of Work (PoW). Here's how it works:
- Shard Level Processing: Transactions are grouped and processed within individual shards.
- Directory Service (DS) Committee: A separate group of nodes—the DS Committee—collects these mini-blocks from each shard and combines them into a full block. This committee also runs a pBFT consensus to finalize the block.
This two-tier system ensures fast validation without sacrificing decentralization or security. It also avoids hard forks by enforcing strict finality once consensus is reached.
Scilla: A Secure Smart Contract Language
Zilliqa introduces Scilla, a purpose-built programming language for writing secure smart contracts. Unlike general-purpose languages such as Solidity, Scilla separates computation from state transitions, making it easier to formally verify code and detect vulnerabilities before deployment.
This design significantly reduces the risk of exploits—a critical advantage for enterprises and developers building mission-critical applications.
Who Founded Zilliqa?
Zilliqa was conceived in 2017 by Prateek Saxena, an associate professor at the National University of Singapore (NUS), whose research in distributed systems laid the foundation for sharded blockchains. In 2015, Saxena co-authored a groundbreaking paper outlining how sharding could enhance blockchain scalability—an idea that evolved into Zilliqa.
He partnered with Max Kantelia, a tech entrepreneur, and Juzar Motiwalla, a venture capitalist, to establish Anquan Capital, which incubated Zilliqa Research. The core team included NUS-affiliated experts:
- Dong Xinshu – CEO
- Amrit Kumar – Chief Scientific Officer
- Yaoqi Jia – Chief Technology Officer
The project launched its ERC-20 token in January 2018, migrated to its mainnet in 2019, and completed the token swap by February 2020.
What Makes Zilliqa Unique?
Several key features set Zilliqa apart:
- First fully sharded public blockchain: Pioneering use of sharding at scale.
- High transaction throughput: Capable of processing thousands of transactions per second (TPS), rivaling centralized systems like Visa.
- Energy-efficient consensus: Uses PoW only for identity verification, not consensus, reducing energy costs by up to 90% compared to Ethereum.
- Enterprise-ready infrastructure: Designed for high-volume applications in finance, gaming, advertising, and more.
- Integration with Chainlink: Enables access to real-world data via decentralized oracles, expanding use cases for smart contracts.
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What Gives Zilliqa Value?
The native token of the Zilliqa network is ZIL, which serves multiple functions:
- Transaction fees: Paid in ZIL when executing smart contracts or transferring assets.
- Staking rewards: Users can stake ZIL to earn annual returns—typically above 6%—and help secure the network.
- Governance participation: Stakers gain voting rights proportional to their stake, influencing protocol upgrades and ecosystem development.
- Store of value: With a capped maximum supply, ZIL is inflation-resistant, enhancing its long-term investment potential.
How Many ZIL Tokens Are in Circulation?
Zilliqa has a total max supply of 21 billion ZIL tokens:
- 60% were pre-mined before launch and allocated to Anquan Capital (10%), Zilliqa Research (12%), team members (5%), and public sale participants.
- The remaining 40% are gradually released through mining rewards over ten years post-launch.
As of now, the majority of the supply is already in circulation. The decreasing block rewards over time help control inflation and support price stability.
Security Features of the Zilliqa Network
Zilliqa prioritizes security through multiple layers:
- pBFT consensus: Prevents double-spending and Sybil attacks with fast finality.
- Elliptic-curve cryptography (ECC): Secures digital signatures and transaction integrity.
- Decentralized oracles via Chainlink: Provides tamper-proof external data feeds.
- Scilla language safeguards: Built-in checks prevent reentrancy attacks and other common vulnerabilities.
These measures make Zilliqa resilient against both internal threats and external exploits.
How to Use Zilliqa
Zilliqa is ideal for:
- Developers building scalable dApps requiring high TPS
- Enterprises exploring blockchain integration
- Traders and investors seeking staking opportunities
- Users interested in participating in decentralized governance
ZIL can be used to pay gas fees, stake for rewards, or trade on major exchanges. The network supports complex use cases such as automated auctions, decentralized exchanges (DEXs), and scientific computing platforms.
How to Choose a Zilliqa Wallet
You can store ZIL in various wallet types:
- Hardware wallets: Ledger devices offer top-tier security via offline storage.
- Software wallets: Apps like Zillet and ZillPay provide user-friendly interfaces for desktop and mobile.
- Web wallets: Convenient for frequent traders but less secure than cold storage options.
For maximum safety, especially with large holdings, hardware wallets are recommended.
Frequently Asked Questions (FAQ)
What is sharding in blockchain?
Sharding splits a blockchain network into smaller segments (shards) that process transactions in parallel. This increases throughput and allows the network to scale efficiently as more nodes join.
Can I stake ZIL tokens?
Yes. You can stake ZIL with no upper limit, though the minimum requirement is 10 ZIL. Staking provides rewards and grants governance rights within the ecosystem.
Is Zilliqa eco-friendly?
Compared to traditional PoW blockchains, yes. Zilliqa uses PoW only for node registration, not consensus. Its hybrid model consumes far less energy—about one-tenth that of Ethereum nodes.
What is Scilla used for?
Scilla is Zilliqa’s smart contract language designed for security and formal verification. It helps developers write safer, auditable code and reduces risks associated with smart contract bugs.
How does Zilliqa compare to Ethereum?
Zilliqa outperforms Ethereum in transaction speed and scalability thanks to sharding. It also offers lower fees and better energy efficiency. However, Ethereum has a larger developer community and broader ecosystem adoption.
Where can I buy ZIL?
ZIL is listed on major cryptocurrency exchanges including OKX, Binance, and Kraken. You can trade it using fiat or other cryptocurrencies.