One of the biggest problems that the blockchain industry has faced is scalability.
The growing popularity of public blockchains like bitcoin and Ethereum has led to some obvious problems.
Bitcoin and Ethereum are not readily scalable, and that is why you get slow confirmation times when transferring tokens on these networks.
To achieve scalability, several industry stakeholders have proposed the use of sharding to improve public networks.
One of the few blockchain projects that are built based on sharding technology is Zilliqa.
This article will explore the Zilliqa blockchain and offer our unique price predictions for the future.
What is Zilliqa (ZIL)
Zilliqa claims to be the only blockchain that runs on sharding technology that enables immense scalability.
You can think of Zilliqa as similar to Ethereum, where developers can build smart contracts and applications.
It is one of the third-generation blockchain projects that is designed to ensure unlimited transactions on its blockchain.
However, the number of transactions that Zilliqa can process depends on the total number of nodes on its blockchain network.
History of Zilliqa
Zilliqa was first conceived in 2017 by a group of researchers from the National University of Singapore.
These researchers led by Xinshu Dong looked to develop a blockchain protocol that integrated sharding technology.
The developments began with the team incorporating Zilliqa in June 2017, after which the team launched its first testnet.
Once Zilliqa was launched, it quickly got the label as an Ethereum killer due to its improved speed and scalability.
Since then, Zilliqa has continued to release new developments as it looks to achieve its aims and visions.
What is Sharding Technology?
We cannot fully talk about Zilliqa without exploring the term "Sharding". Sharding technology is the term that makes Zilliqa stand from other blockchain networks.
One of the problems associated blockchain technology is its inability to scale well.
This is because as the number of nodes within a blockchain increases, it becomes difficult to reach a consensus.
So how does sharding solve this problem? To get a clearer picture, let's use an everyday example to explain sharding.
Imagine a scenario where 100 people are trying to solve a puzzle together. When someone within the group finds a missing piece, he has to inform the others if they agree with his discovery.
If there is a consensus (majority vote), then they will fit the puzzle piece in agreement. This is typically how a traditional blockchain works.
You can see the flaw in this system. As more people join in solving the puzzle, it becomes increasingly difficult to agree on a consensus.
Sharding comes into play by dividing the 100 people into 10 groups of 10, with each group solving different aspects of the puzzle simultaneously.
Once the different pieces are resolved, the subgroups join together to form a complete puzzle.
This is clearly a faster and more efficient way of solving the puzzle. Since the higher the number of people, the faster the puzzle gets solved.
This is precisely how sharding works as it divides the Zilliqa blockchain network into "shards (smaller pieces).
Thus transactions can quickly be completed in a faster and efficient manner.
As more nodes join the Zilliqa platform, the number of transactions processed within its block increases, unlike traditional blockchains like bitcoin and Ethereum.
Using sharding technology, Zilliqa is capable of processing up to 2828 transactions per second (TPS).
This makes it one of the fastest blockchain platforms. In contrast, Bitcoin can only process 7 transactions per second, Ethereum 15 TPS, and Tezos 50 TPS.
Hybrid Consensus Protocol
Unlike Bitcoin and Ethereum that solely uses the proof of work protocol. Zilliqa implements a hybrid consensus mechanism.
This is a combination of proof of work and Byzantine fault tolerance. This way, it ensures the security of its blockchain without expanding too much power on machines.
Also, proof of work in Zilliqa is not used primarily for blockchain mining. Instead, it is used to confirm nodes on its blockchain.
This ensures that the Zilliqa blockchain is not hijacked by a single entity to enforce a 51% attack.
Scilla Programming Language
Zilliqa uses a unique smart contract language called Scilla, which comes with many features.
Some of these features include:
Static analyzer enables developers to detect bugs within smart contracts before they go live.
Scilla contains its library of functions, making it dedicated to Zilliqa.
Scilla features is a programming language making it easy for developers to develop smart contracts.
Scilla is easy to understand for developers to build dApps
The Zilliqa Native Token (ZIL)
Now that we are through with the technical details of Zilliqa let's delve into the native token ZIL.
Just like its competitor Ethereum uses Ether to pay for fees while running transactions on its network.
ZIL serves as the native token for paying for transactions within the Zilliqa network. It was initially created as an ERC-20 token on the Ethereum blockchain network.
However, since the Zilliqa mainnet launched in 2019, native ZIL tokens have been mined, and a gradual change was made to replace the initial ERC20 tokens.
One of the major differences between ZIL and ETH is that the former's transaction fees are very low.
Moreso, Zilliqa processes transactions faster and can take up more transactions within a block.
This ensures no clogging in its network, thus maintaining low transaction fees for payment confirmation.
Also, ZIL can be used to purchase goods and services. Thus you can buy a burger or domain name from platforms that support ZIL payments.
Furthermore, if you like to speculate on assets, ZIL is a great asset due to its volatile nature.
Zilliqa (ZIL) Fast Facts
All-Time High: $0.2315 (May 10, 2018)
All-Time Low: $0.00247 (March 13, 2020)
Zilliqa (ZIL) Price Prediction for 2020 to 2025
Zilliqa (ZIL) Price Prediction for 2021 ($1)
As of the time of writing this article - February 19, 2021, Zilliqa (ZIL) is exchanging hands at $0.1343.
Zilliqa is currently on a mini bull run and has gained 79% in value in the past month.
It is inching close to its all-time high of $0.2315 achieved in 2018.
If the current upturn in price continues, Zilliqa will most likely hit $1 per token.
That will offer a return of 644% if you buy the coin at the current price.
Zilliqa (ZIL) Price Prediction for 2025 ($10)
The long-term growth of Zilliqa is looking good due to several reasons.
Zilliqa's ecosystem is expanding with the adoption of its smart contracts in different sectors globally.
The Zilliqa blockchain network is already being used by decentralized domain platform Unstoppable domains to issue decentralized domain names.
If these developments continue, we expect that the price of ZIL will increase exponentially.
Also, over half of the total Zilliqa that will be produced (21 billion) is already in circulation, which bodes well for the coin.
Placing all these into consideration, I expect Zilliqa to hit a realistic price of $10 in the next five years.
This corresponds to an increase of over 7000% during this period.
In my opinion, the target is realistic given the ever-changing dynamic of the crypto space and increasing adoption of Zilliqa.
Conclusion
The blockchain community continues to expand, and new ideas are being formed to revolutionize the smart contracts market.
Zilliqa, with the introduction of sharding to its blockchain, is well placed to become a leading player in this space.
However, it will have to do more in terms of publicity and partnerships as this are the bedrock of any blockchain project.
I hope so... I will be happy