Is Zilliqa the Godzilla of crypto?
The immortal Godzilla. So I heard about Zilliqa when it came up with its ICO (Jan 2018). Didn’t get in then. But I really had a look at it last year, and a big big thanks to this the Youtuber – Crypto Mobster. (Seriously if you want to learn about crypto, projects, follow this guy. He’s brilliant and honest in his work).
Again the intent of this article is to introduce you to the project called Zilliqa, what it’s building and where it can go.
What is Zilliqa?
In a recent post, I mentioned that a large number of existing blockchain platforms suffer from an issue of scalability. What is mean by scalability is that they are unable to expand in size because of limitations. The limitation here is the number of transactions they can process. Sounds complicated? Have a look at this image.
It’s a chart showing how many transactions the Ethereum Blockchain processes per second. Currently, it is averaging 13 transactions per second. That’s pretty dismal, isn’t it? For a technology that’s aiming to have global adoption.
Here’s the link for Blockchair (some cool statistics here. Would recommend you explore this). You can check out transaction speeds across different blockchains. For the record, Bitcoin has a transaction per second of approximately 4. To give you a perspective on this, Visa’s decades-old technology, VisaNet, processes 65,000 transactions a second.
Bottom line, existing infrastructure, in general, suffers from the issue of scalability. As the adoption of blockchain technology grows, this infrastructure is bound to be pushed to its limits.
Here’s where we are on scalability in blockchain
Here’s where we ought to be
And that’s where Zilliqa comes in. Zilliqa can help increase these transaction rates. That’s why it calls itself the first-ever high-throughput (SPEED) public blockchain. And how does it achieve this speed? Using a technology called – SHARDING.
What is Sharding?
Going real basic here. Let’s say there’s a bag of 1500 gummy bears of different colors. There are red, yellow and green candies, 500 of each color.
You need to sort these separately based on their colors (of course you can’t eat any).
You can do it yourself, one candy at a time. Say you are able to sort 60 candies in a minute. This task of sorting 1500 candies would take you 25 minutes
Now, let’s suppose instead of doing this exercise yourself, you find two friends to join in. Now, there are three people doing the task. So that’s 180 candies getting sorted a minute (3 X 60). The same task now takes you (along with your team) a little over 8 minutes.
That’s what Zilliqa’s sharding technology can do. (Obviously not with gummy bears!!!!). So let’s make this slightly more technical
So we know a blockchain is a chain of blocks (blocks of data). This data is stored on something called nodes (let’s, for now, think of these as computers). All nodes on a blockchain are connected to each other and they constantly exchange data.
Here comes sharding (DIVIDE and CONQUER). Simply, sharding divides the main task into multiple tiny tasks. Imagine a network of 1,000 nodes (this is now big, heavy, can be slow, energy drainer). Sharding involves dividing this network into 10 parts (called shards) each composed of 100 nodes.
The 10 shards are running parallel. Imagine a highway of one lane. Now imagine a highway with 5 lanes. Which ensures the passing of a higher number of cars?
After sharding, each note feels lighter, fitter, and can process quicker. So, for example, if each shard is capable of processing 10 transactions per second, then all shards together can process 100 transactions per second.
That’s all to know. This may have been complicated. But just remember the highway and candies example, and you’ll be good.
Who’s behind Zilliqa?
It’s a very active team, especially on social media. This is an important thing, especially to keep people in the know. Two people I’ve tracked on Twitter and I think they do an amazing job keeping people informed are
The team’s very experienced and is a mix of professionals – scientists, engineers, researchers, which is great in a field like blockchain.
Where can Zilliqa go?
Again, I’ll do more posts on this. But here’s a brief overview
Current price: $0.135454 (Its all-time high has been $0.23. So the current price is an over 40% discount to that high.
Market cap: $1.59 billion (giving it a rank, in terms of project size, at 53).
Here’s a quick look at the price chart
From the looks of it, the all time high seems in reach and we could well see it soon. Beyond that, Zilliqa enters an area of price discovery (this is basically a term given when the price moves into uncharted territory and where the price goes to next is a wait and watch). At $0.23, Zilliqa would have a market cap of approximately $2.7 billion (which at current market conditions puts it around a position of 35 in terms of market size. Only 35!!!!!!).
Zilliqa’s got a bunch of developments planned for the coming year. One that’s near is a step to establish interoperability (if you’re unfamiliar with this term, check out the post on Quant). I’ll add in more details on what this means and other developments coming up soon. (Just think there’s enough been covered in this blog to give you an idea of this project).
This project got a ton of things working for it – a strong team, a cool and focussed project, a well-supported community. Supporting market conditions, there’s no reason why this cannot grow multiple times even from here. A definite long-term hold. Even if it’s a small amount. (Again DYOR. Don’t just jump in blindly)
Fun fact: Another project which uses sharding is Elrond and it has a current market cap of approximately $2.7 billion. (That’s the same Zilliqa would have at its high)