Zilliqa is unique in the cryptocurrency world because it focuses on sharding and scilla. Sharding is a process by which nodes on the blockchain are divided into different groups that have the same number of nodes as the other one, therefore if one shard can do ten transactions per second, all shards together will process 100 transactions per second.
Zilliqa’s consensus mechanism begins in a Proof-of-Work phase, where investors must confirm the blockchain by completing an individual hash. This process has finality, meaning that the majority of nodes must agree on a mini-blockchain before finalizing it.
A node cannot participate in a transaction block without first Practical Byzantine Fault Tolerance (pBFT) consensus. All nodes assigned to specific shards must comply with pBFT before finalizing the transaction, which means that anyone with ZIL can vote on network updates or help maintain it with execution or voting.
The ZIL utility token is used for smart contract execution and transaction fees on the Zilliqa blockchain. Moreover, they are rewards for proof-of-work miners who dedicate resources to the network.
The 3 Main Advantages of Zilliqa
1. First, Zilliqa enables transactions on a censorship-resistant platform thanks to the decentralized structure of the network.
2. In addition, the platform’s functionality allows it to handle large currency transfers and small transactions, which enable developers to build deeper applications and consumers to transact at low cost.
3. Finally, Zilliqa is environmentally friendly when compared to Bitcoin, which uses a lot of energy when performing transactions and mining processes.
Zilliqa (ZIL) Price Prediction
In conclusion, scalability in the cryptocurrency market is facilitated by Zilliqa’s sharding design. It is estimated that ZIL could reach $1 by the end of 2021.
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