Zilliqa is the next-gen high throughput blockchain platform. It was introduced at the beginning of this year, but unlike other new cryptocurrencies, it has been surging since its inception. So, what’s the big deal about it? Why is everyone so hyped? What exactly does it offer that we can’t find in other cryptocurrencies?
Why Zilliqa Works?
All of these are valid questions because tons of ICO (Initial Coin Offerings) happen all the time but rarely do we see something take off as quickly as Zilliqa did. There are a multitude of reasons behind Zilliqa’s success but the main reason it has been getting so much attention is that it has the ability to perform more transactions in a lesser period of time aka scalability.
Scalability has always been a huge problem for cryptocurrencies, as they have always been limited. Even the most popular crypto – Bitcoin has been held back due to this very reason. The SegWit update did improve the speed, but it still wasn’t at the level that it should have been.
The people behind Zilliqa understood this problem, so they opted to go with the Sharding technology and implemented it for their blockchain. This particular technology enables blockchain to scale in a linear way as more and more transactions occur. In simpler terms, we can say that the Zilliqa Sharding has no upper limit on how many transactions it can process per second. This capability alone has helped skyrocket the hype behind Zilliqa coin and it shows no signs of stopping. It has a clear edge over the others, who are still using the old consensus systems.
Old Consensus Systems
Old consensus systems of scalability may have worked in the past but now that cryptocurrencies are being utilized on such a huge scale, it just wouldn’t work. Think of the old systems in this way – a few people are gathered in a meeting and want to solve the sanitation problem in their area. Most of them would come to a consensus and a solution is found. This was how it worked back when cryptocurrencies weren’t popular – the slower transactions speed didn’t hurt because of fewer users.
However, things have changed now – imagine the same problem being discussed amongst millions of people – there is no way you will be able to reach a consensus in a short time, and you will have to resort to other ways just to come to a conclusion. Similarly, with more people involved in cryptocurrencies, the slower transaction processes due to old consensus systems have become a complete nuisance.
Proposed Solution by Cryptocurrencies
Everyone knows that the old systems aren’t working, so the only solution mostly brought forward is of increasing the block size on the blockchain. This particular change allows for more transactions to be confirmed before a block is filled. This solution certainly helps, but it is quite short-term.
As mentioned before, the more people get into cryptocurrencies, the higher the requirement of blocks will be. Eventually, the increased size would not be sufficient enough, and the same increase in the block will have to be done once again. Instead of being a solution, this potential solution just becomes a cycle. People behind Zilliqa understood the limitation of old consensus systems, so they opted to come up with their own solution.
Zilliqa offered Sharding, as a counter to the old ways. This process makes nodes and transactions directly proportional to each other. More transactions can be processed as more nodes are introduced into the network. Zilliqa’s network is capable of being scaled to 1 million nodes but we are not getting there anytime soon.
Currently, Ethereum has the most nodes with the rough estimate of 25000. And it is only capable of performing around 15 transactions per second. On the other hand, Zilliqa is currently performing over 1200 transactions per second with a little over 2000 nodes. And all the credit goes to Sharding.
We have already explained that transactions and nodes are directly proportional to each other but what are shards? And why is this process called Sharding?
The process of Sharding is quite simple and straightforward. The nodes in Zilliqa network are divided into groups. As 600 nodes enter into a network, they are made into their own group which is named shard. For example, if Zilliqa’s network has 1800 nodes, then they are operating with three shards with 600 nodes each.
With the process of adding shards, the work is divided. Instead of the whole network focusing on one task, they can now focus on three. This speeds up the process of transactions, hence completing them at a much faster rate. Zilliqa is growing at a frantic pace and with more nodes, more shards are being added. With more shards, the capability of Zilliqa to process more transaction is also increasing, and this is the main reason why everyone is so hyped up about Zilliqa.
At this point, Zilliqa is the only cryptocurrency to make use of Sharding, but Ethereum is also looking into this process and might make a shift to it pretty soon. Until then, however, Zilliqa is going to enjoy success because, in terms of transactions per second, it is leaving every other cryptocurrency behind.