Introducing Zilliqa, the network enabling the creation of high-throughput Decentralized Applications
Zilliqa is a blockchain platform that wants to enable the creation of high-throughput decentralized applications through the use of sharding. Its design allows for increased scalability and security, even in networks with many nodes. By focusing on improving transaction speed, Zilliqa wants to foster the development of decentralized apps that can process thousands of transactions per second. Whether you are interested in adding to your portfolio of digital assets or want to learn more about Proof-of-Stake chains, understanding Zilliqa may be valuable for you. So, let’s have a further look at the network!
One of the main features that sets Zilliqa apart from other blockchains is its use of sharding to improve scalability. Sharding is a method of dividing the network into smaller groups, or "shards," which can process transactions in parallel. This allows Zilliqa to process more transactions per second than blockchains that do not use sharding.
In addition to sharding, Zilliqa also uses a hybrid algorithm called "Proof-of-Work (PoW) followed by BFT" that combines elements of both PoW and Byzantine Fault Tolerance. This hybrid approach allows faster transaction confirmation times and increased security compared to pure Proof-of-Work or pure BFT systems. However, Zilliqa doesn’t use PoW for consensus. Zilliqa uses a consensus protocol based on Byzantine Fault Tolerance (BFT) to ensure that blocks are definitive and do not require long confirmation times. Traditional BFT protocols are not as scalable to large network nodes due to the high communication bandwidth and time needed to converge. To address this issue, Zilliqa has implemented the CoSi scalable signature scheme with additional steps and message rounds to prevent malicious behavior and make the protocol more secure and scalable. This BFT-based protocol is used to reach consensus within the directory service committee and each shard that processes and accepts transactions on the Zilliqa network.
The combination of sharding and a hybrid consensus algorithm makes Zilliqa a unique and innovative blockchain platform.
Nodes on Zilliqa Network
To understand how the Zilliqa blockchain works, it's vital to look at the different types of nodes that perform their functions or provide specialized services.
- Seed nodes in the Zilliqa network are full nodes that do not participate in the dispatch of transactions to shards and the directory service committee. Instead, they are used to handle requests and create new transactions. These transactions are then bundled by the seed nodes and forwarded to lookup nodes for distribution to the appropriate shards and committee members. Seed nodes serve as a point of entry for external requests and play a supporting role in the overall operation of the Zilliqa network.
- Staked seed nodes (SSNs) are a type of seed node operated by staking partners. They provide infrastructure services to the community in exchange for staking rewards, which are paid in the form of $ZILs. The amount of the staking reward is based on the performance of the SSN. SSNs are an essential part of the Zilliqa network and help to ensure that the network can handle a high volume of external requests.
- Shard nodes are the mining nodes in the Zilliqa network responsible for processing transactions and reaching consensus to generate micro blocks. They are organized into clusters, or "shards," and each shard processes a specific set of transactions. Shard membership is determined by the directory service committee, which assigns nodes to shards after they complete a PoW problem. Shard nodes are rewarded with $ZIL for their work at the end of every directory service epoch.
- Directory Service (DS) nodes are mining nodes in the Zilliqa network that have additional responsibilities related to creating and aggregating blocks. In addition to processing transactions, DS nodes combine micro blocks from different shards to form the Transaction Block and create the DS Block at the start of each directory service epoch. Like shard nodes, DS nodes are rewarded with $ZIL at the end of every directory service epoch. The collection of DS nodes is known as the DS committee.
- Lastly, lookup nodes are full nodes in the Zilliqa network that store all blockchain data and provide it to syncing or joining nodes. They also dispatch transactions to the shards and DS committee. Lookup nodes serve as reference points and help ensure efficient transaction distribution.
Zilliqa’s Digital Asset
$ZIL, the native cryptocurrency of the Zilliqa platform, is based on several key factors. These include:
- Total supply: The total maximum supply of $ZIL is fixed at 21 billion coins.
- Distribution: $ZIL was initially distributed through private and public sales, with a portion of the coins, also set aside for the Zilliqa team and advisors.
- Inflation: $ZIL has a moderate inflation rate, with new coins circulated through block rewards and staking rewards. The block reward is designed to decrease over time, resulting in a lower overall inflation rate.
- Staking: $ZIL can be staked by holders to earn rewards and participate in the governance of the Zilliqa network.
- Use cases: $ZIL is used as the primary means of exchange on the Zilliqa platform and can also be used to pay for transaction fees and decentralized access applications (DApps).
Overall, the tokenomics of $ZIL are designed to encourage participation in the network, provide an incentive for securing the network through staking, and support the use of $ZIL as a means of exchange on the Zilliqa platform.
The Zilliqa project has a number of goals and initiatives outlined in its roadmap, which is designed to drive the growth and development of the platform over time. Some key areas of focus for the project include:
- Scalability: Zilliqa is focused on improving its platform's scalability through sharding and other technologies.
- Interoperability: The project is working to enable interoperability with other blockchain platforms to allow for the creation of cross-chain applications and services.
- Decentralized finance (DeFi): Zilliqa is exploring the use of its platform for decentralized finance applications and is developing tools and infrastructure to support this use case.
- Security: The project is focused on improving the security of its platform and is working on initiatives such as formal verification and secure multiparty computation.
- Adoption: Zilliqa is working to increase the adoption of its platform by developers, users, and businesses through partnerships, developer education, and other initiatives.
According to their website, there are currently 190 projects operating within the Zilliqa ecosystem, among which are different NFT communities, DeFi projects, and more. Recent endavours of the network is its focus on video games with the forthcoming launch of Web3war and their partnership with Metapolis, NiP, RRQ as well as Mad Lions. Read more about those partnerships here. Stakin looks forward to continuing our support for the network and seeing how the ecosystem will develop further.
Stakin on Zilliqa
Stakin has been operating a Staked Seed Node on the Zilliqa network since August 2022, offering reliable and secure infrastructure for the network. In addition to providing technical support, Stakin also supports the development of the network through education and governance efforts. We are proud to be a SSN operator for Zilliqa and invites interested individuals to learn more about Zilliqa staking on the official website or visit Stakin's website to find out more about our operations on Zilliqa and other web3 infrastructure services.
DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.