It has been an interesting few years for the cryptocurrency market. As more and more solutions to the scalability and cross-chain connectivity issues arise, there are networks popping up all the time to handle them. That is where Zilliqa comes into the equation.
Before you can go making a Zilliqa price prediction, it helps to know what this blockchain network is, what it brings to the table, and why it can stand apart from the competition to become a worthwhile investment. Read on to find out more in this Zilliqa price guide.
What is Zilliqa (ZIL)?
To put it simply, Zilliqa is a public blockchain built in order to handle the issues of throughput and scalability that have plagued larger networks like Ethereum and Bitcoin. Zilliqa does this through sharding, which ultimately creates a scalable, secure platform that speeds up transactions by dividing the network into a series of nodes that run in parallel to one another.
Because it is a permissionless, high-throughput blockchain, developers are able to use it to host decentralised applications (dApps) and execute smart contracts without having to face the challenges of high gas fees or congestion that other networks do. It has claimed to be the first blockchain to entirely rely on sharding to solve the aforementioned issues.
Who are the Founders of Zilliqa (ZIL)?
One of the cool things about Zilliqa is its origin story. It began as a project between Professor Prateek Saxena and his students at the National University of Singapore School of Computing. The project would grow to include a founding group of six: Saxena, Amrit Kumar, Yaoqi Jia, Zinshu Dong, Juzar Motiwalla, and Max Kantelia.
Kantelia founded the Zilliqa Group, the parent company of Zilliqa. Kumar is the former president and chief scientific officer, while the others have acted in a more loosely described “co-founder” role. Kantelia and Motiwalla also co-founded Anquan Capital, the venture builder that sought to develop the network with the launch of Zilliqa Research in 2017.
What Makes Zilliqa Unique?
The thing that jumps out immediately is that it is a public blockchain – said by the developers to be the first of its kind – relying entirely on sharding of the network. Because of the sharding impact, it is able to produce high transaction rates and throughput. This should, in theory, put it in a position to rival more traditional, centralised payment systems.
Zilliqa has positioned itself to be the alternative for developers seeking large-scale enterprises within the gaming, advertising, and financial services sectors, among others. The Scilla language is unique as well in that it seeks to automatically update and improve the network over time.
How Many Zilliqa (ZIL) Coins are There in Circulation?
The number of available tokens lends to the perceived rarity of a token, impacting its price. Zilliqa price is definitely impacted by this. With a max supply of 21 billion tokens, it is on par with some of its competitors in the marketplace. Of that total, there are more than 19.57 billion tokens currently in circulation.
How is the Zilliqa Network Secured?
The primary means of security comes from its hybrid consensus. It uses a practical Byzantine fault tolerance, which acts as the final layer for verification. A supermajority of all the nodes must agree before a transaction can be added. This ensures finality and prevents hard forks without having the need for many confirmations.
There is also the proof-of-work algorithm made famous by Bitcoin. These prevent Sybil attacks and ensure that all the nodes are legitimate. The smart contract language, Scilla, also identifies and eliminates any potential vulnerabilities that show up during development.
Zilliqa (ZIL) Ecosystem
The Zilliqa Network is relatively limited compared to other blockchains. There is a focus on DeFi thanks to decentralised exchanges like PlunderSwap. Aqilliz provides enterprise solutions with the HGX platform leading the way in terms of real-world asset tokenisation.
There are a number of tools available to decentralised application (dApp) developers. For instance, there is Zeeves, a bot that is based on Telegram’s technology, offering rewards and engagement to users. The ZILHive is a grant, mentorship, and incubation programme meant to foster developers on the system.
Finally, there is ZilBridge, a cross-chain program. It is meant to bridge the connectivity issues between other blockchains, a problem that has been at the forefront of the cryptocurrency community in recent months.
FAQs
What’s the history of Zilliqa?
Zilliqa began as a research paper by Prateek Saxena in 2016. The paper was a project between the National University of Singapore professor and his students. The goal became to improve network speed and efficiency through sharding. He would go on to co-found Anquan Capital, launching Zilliqa in June 2019. It has since become compatible with the Ethereum Virtual Machine and the Zilliqa 2.0 whitepaper has been released.
What is the highest and lowest price for Zilliqa (ZIL)?
Compared to other tokens, ZIL has a relatively low rate of variance. Its lowest price was achieved on Mar. 13, 2020, when it fell to $0.00239 per token. Just over a year later, on May 6, 2021, it hit an all-time high price of $0.2554 per token.
What is the market cap of Zilliqa (ZIL)?
As one of the most important metrics behind a token, market capitalisation is something that we need to determine. It can be calculated by taking the current market price of the token and multiplying it by the number of tokens in the circulating supply. With 19.57 billion tokens in distribution at a price of roughly $0.00688, ZIL has a market cap of around $134.87 million USD.
What is the fully diluted valuation of Zilliqa (ZIL)?
We can get the fully diluted valuation (FDV) of a token by taking its current market price per token and multiplying it by the total supply. With 20.255 billion tokens in distribution at a price of roughly $0.00688 per token, we see that Zilliqa has an FDV of roughly $139.57 million USD.
What is Zilliqa (ZIL) used for?
One thing that hinders Zilliqa is that it is relatively limited in terms of uses. While it can support DeFi protocols for borrowing, lending, and trading, not to mention enterprise tokenisation, it is still somewhat limited. Zilliqa has branched into NFTs and gaming but is far from an industry leader in those fields.
Pros & Cons of Zilliqa?
On the positive side of things, Zilliqa addresses potential compliance structures thanks to an infrastructure built to handle those challenges. Scalability is also another major positive because of its sharding construction. That said, competition has had a big impact on Zilliqa, and its price remains quite low compared to others in the market.
How do network consensus and validation work on Zilliqa?
The Zilliqa Consensus is unique to the Zilliqa blockchain. The goal of this consensus is to address slow transaction speeds and scalability issues presented by networks like Ethereum and Bitcoin. This is done by combining the Practical Byzantine Fault Tolerance (PBFT) with sharding, which divides the network into smaller, manageable groups.
Is it safe to invest in Zilliqa?
There isn’t really a “safe” play when talking about crypto, but Zilliqa is still quite speculative. Because it is attempting to solve the scalability issues that so many other blockchains attempt to solve, it has a hard time separating itself. That being said, its price is low enough that one could buy a substantial amount and hope it rises without suffering major losses.
What affects the Zilliqa price?
Though there are broader market and economic factors that impact all cryptocurrencies, Zilliqa is specifically influenced by the Zilliqa 2.0 upgrade. This modular architecture and compatibility with the Ethereum Virtual Machine (EVM) are noteworthy, as is its list of strategic partnerships with networks like Liechtenstein’s state-backed blockchain network.
How do I read the Zilliqa price chart?
Reading the Zilliqa price chart is not as tough as it looks. Along the horizontal axis is the passage of time. You can even change time periods to reflect a single hour, a day, a week, a month, or even the all-time price change. The vertical axis shows the price movement over that specified period of time.
What risks should I consider before trading or holding Zilliqa?
There are a number of risks that come with holding Zilliqa. General market volatility and liquidity risks are always present. There are also ongoing security concerns behind smart contracts, which could potentially leave them open to an exploit or cyberattack.
How do I report my Zilliqa transactions for tax purposes?
Reporting cryptocurrency transactions for tax purposes can be tough. When it comes to reporting Zilliqa transactions, the best course is to keep detailed, accurate records. You could also work with a cryptocurrency tax expert in order to ensure that everything is accurate and in order.
