There is a space race going on with regards to blockchain development.
Like during the race to be the first to go to space, different platforms are looking to be the one to solve the biggest problems with blockchain.
Anybody paying attention to the crypto space knows that speed, cost and scalability are the problems holding the blockchain back from mass adoption.
Ziliqa thinks they may have solved these issues which will revolutionize the blockchain world.
How does Zilliqa work?
Blocking off sections of the network into what’s called sharding should be able to speed up the validating process.
Within these shards is the blockchain in miniature. Instead of trying to validate a block at a time, with a block needing to be validated before another can be added to it, the voting is done within the shard.
The shards also keep the blockchain from taking a linear form, so the individual shards can all have their blocks validated independently and then added to the blockchain as they reach consensus. In essence, this theoretically means that there could be an infinite number of transactions done simultaneously.
Think of it like dividing a workload. The more shards there are, the more the network divides the consensus load between shards, keeping computing demands relatively stable.
The weak link in this type of system is the fact that the nodes all need to communicate with each other to share the stored data that smart contracts need.
To get around this, Ziqila created their own programming language called Scilla that differentiates between state and function. In other words it separates the information that is being shared between the shards so they can communicate but not change states.
Right now the code is not open, but later on they plan to show the code.
How is the ZIL token used?
Like on any other platform on a blockchain a native token is needed not only to fund the project, but also to be used across the ecosystem.
ZIL is used as a mining incentive, gas for contract execution and to pay for transaction fees.
ZIL is an ERC-20 token based on the Ethereum blockchain.
So, after all is said and done, how is Ziliqa different from Ethereum? It seems Ethereum is trying to solve the same scalability issues that Ziliqa says they can fix.
The main difference is the scale of the blockchain already in existence with Ethereum. Though the team at Ethereum are working on ways to solve the problems as we speak, Ziliqa is hoping that since they are taking a novel approach that can be done faster than recreating an already existing ecosystem like Ethereum, that they will be first across the gate.
Can Ziliqa do it? They have already performed a stress test on the platform to see if they were on the right track and were able to execute almost 2,000 transactions per second. Compare that to Ethereum’s 20 or so at the current time. 2,000 sounds like a success when you compare it to Ethereum, but it pales compared to Visa’s 45,000 per second.
Until the blockchain can scale to that frequency, then mass adoption will have to wait.