Zilliqa | ChangeHero

Table of Contents

1. About Zilliqa
2. Zilliqa Pros and Cons
3. Final Verdict
4. FAQ

About Zilliqa

Zilliqa is a blockchain protocol created by the National University of Singapore alumni and now is supported globally. Its defining advantage is sharding, a technique of processing transactions in parallel, which scales better as more nodes join the network.Zilliqa tokens ZIL were launched on Ethereum and converted to coins (i.e. on its own blockchain) in 2019. Now they are used in gas fees, staking, and in the apps on the platform. The blockchain hosts hundreds of dApps for multitudes of use cases: from DeFi to play-to-earn.

Zilliqa Pros and Cons

Pros

Working Sharding Implementation
Sharding means a network is split into smaller networks called shards that can process actions simultaneously, in parallel to each other. Sharded networks are designed so that their throughput is directly proportional to the number of participants. The more nodes the Zilliqa network has, the more transactions per second can be processed.
Robust Ecosystem
There is a wide variety of use cases for ZIL within the Zilliqa platform. In addition to being a gas and staking token, ZIL can pay for the services provided by the applications in the Zilliqa ecosystem. NFTs also require ZIL to be minted and traded on apps like XCAD Network for video streaming or music distribution service Opulous. ZRC tokens range from a Singapore dollar-pegged stablecoin XSGD to Lunr, a utility token of sentiment analytics portal LunarCrush; they can be traded on the Switcheo decentralized exchange.
Alternative Smart Contract Platform
The demand for blockchain networks won’t wait for sharding on Ethereum, so layer-two solutions and alternative smart contract platforms started to appear. To maximize the positive effect of sharding and expand it to smart contracts and computations, Zilliqa uses a special-purpose native programming language and execution environment. In simple terms, smart contracts in Zilliqa can be executed in parallel to transactions and each other.

Cons

Competition with Ethereum
The throughput of ZIL is much higher than that of ETH by design. However, when (and if) sharding arrives on Ethereum, there would be much less difference between the two. At that point, the main competitive edge would be the robustness of the ecosystem, and right now, Ethereum is in the lead. Nevertheless, this scenario is a long shot from now, and by that time, everything may be completely different.
Modest Real Usage
According to the block explorer Viewblock, the Zilliqa blockchain sees a decent 20k+ transactions every day. At the same time, its real TPS is around 0.3, and token and NFT stats remain somewhat low.

Final Verdict

Zilliqa proposes a strong alternative to Ethereum, held back by its relative obscurity. Its native coin mostly sees use in value transfer, and having a large but limited supply can help in the long run.

Category	Rating
Security	80/100
User-Friendliness	70/100
Popularity	60/100
Supported Coins	50/100

FAQ

What is Zilliqa crypto used for?

Zilliqa (ZIL) is a smart contract platform that scales in direct proportion to the number of nodes with the help of sharding. Zilliqa coins ZIL power the economy of the ecosystem built on top of the blockchain which encompasses most modern dApp, NFT, and DeFi use cases.

Does Zilliqa burn tokens?

To enable zero-inflation supply dynamics, Zilliqa does not remove coins from circulation but redistributes them. A validator fee gets redirected to the miner reward pool, making sure that validators are rewarded without the supply getting inflated.

Which wallet is best for Zilliqa?

Don’t forget that you need a crypto wallet to store Zilliqa. Between Exodus, ZilPay, Moonlet, and Ledger, there are hot and cold ZIL wallets in any shape and form.