Zilliqa (ZIL) is a blockchain platform that is designed to securely scale processing transactions in an open, permissionless distributed network. Zilliqa’s core feature is a concept described as “sharding”, which in simple terms is the division of the network into several smaller component networks capable of processing transactions in parallel. This allows for scaling of transaction rates with increasing mining network expansion.
THE DEMAND / THE MARKET
One of the criticisms you may have heard about cryptocurrencies is that there is an inverse relationship between the speed of transactions and use. Transaction speeds tend to decrease as more people are using the network. For example, the transaction speeds of Bitcoin is 7/s, Ethereum is 20/s, and Ripple is 1500/s. These speeds fall severely short in comparison to their payment processing in centralized operators such as VISA or MasterCard, which are capable of thousands of transactions per second (Figure 1) [1-8]. The challenge associated with the scalability of are deeply rooted in the design of the consensus and network protocols.
Zilliqa, using a concept which they describe as “sharding”, is able to securely scale in an open, permissionless distributed network. They do this by dividing the network into smaller component networks which are capable of processing transactions in parallel. Thus, by expanding the mining network, Zilliqa is able to increase transaction rates. Using this concept Zilliqa is capable of rival the transaction speeds of traditional centralized payment methods such as VISA and MasterCard. For instance, Zilliqa states that with a network size of only 10,000 nodes, they are able to process transaction speeds that match VISA and MasterCard, with the advantage of lower fees. To expand further, Zilliqa design allows for its transaction rates to double with every few hundred nodes added to its network. To put this in perspective, with only 3600 nodes, which is only 1/10th of Ethereum network, Zilliqa is processing about 2500 transactions per second.
With the ever-growing concerns from various governments and governing bodies regarding the high energy consumption of mining companies, Zilliqa’s ability to reduce energy consumption is certainly a positive attribute. The high energy costs associated with mining is due to the mechanism of which blocks are created. This mechanism is known as Proof of Work (PoW), which essentially pits processors against difficult mathematical problem, where the solving the problem leads to being verified. Arriving to the answer to this complex mathematical problem requires significant computational power and can consume significant amount of energy. Currently, in order to create a block, all miners must work simultaneously to arrive at the mathematical solution, at the end of which only one can succeed. As a result, the computing power of other process is completely wasted.
Similar to other existing blockchain platforms such as Ethereum and Bitcoin, Zilliqa leverages PoW to establish the identity of the processor. However, Zilliqa combines PoW with a practical Byzantine Fault Tolerant (pBFT) protocol. In layman terms, miners use PoW to establish their identity on the blockchain, once established, the miner is assigned to a consensus group, described as sharding, where multiple rounds of pBFT consensus are run. As a result, there is significantly reduced energy costs associated with PoW. Zilliqa states that the costs of running a Zilliqa would be at about 1/10 of running an Ethereum node today. Additionally, sharding allows for a constant mining cost per transaction, meaning that the mining cost for the network / number of transactions processed will stay constant. Further, miners can expect high aggregated fees (due to number of transactions performed) while maintain a low transaction fee for the users. [9-11]
- Releasing public testnet v1.5
- Resilience and recovery
- Support for basic features of smart contracts
- Performance optimizations
- Feedback & bug fixes Second quarter 2018
- Launching the first version of Zilliqa public Mainnet
- Computational sharding for smart contracts Third quarter of 2018
- Releasing dApps
Zilliqa’s team consists of mostly PhDs in computer scientists. You can read about the team in detail in Zilliqa’s position paper . Below is a few highlights of members of the team and advisors.
- Technical lead for several national cybersecurity projects in Singapore.
- Led the research and development of Anquan’s proprietary scalable and secure blockchain – deployed for financial and ecommerce applications.
- Has had various publications surrounding the topics in the cybersecurity space.
- Co-founder of BOLT – live TB and gaming service with over 3M users
- Founder of Pin8cle – strategic consultancy to turn start-ups to rev-ups
- Regional social lead at Samsung Asia
- Head of content at Twitter
- PhD in Computer Science from UC Berkeley.
- He has received several premier awards such as the Top 10 Innovators under 35 (MIT TR35 Asia) in 2017.
- Software Engineer at Gemalto – Publically traded company. One of world’s largest sim card manufacturing companies.
- Financial services entrepreneur with 25 years’ experience of building professional services and technology firms in Europe, the US and Asia
- He is a Co-Founder of Anquan Capital in Singapore and is on the board of Aeriandi (Oxford) and untapt (New York), both fast growth deep technology companies in the areas of voice technology and artificial intelligence.
- Founder and CEO of StrongHold Labs, Partner at Numeraire Financial, Co-Founder and Advisor of Distilled Analytics, Connection Science Fellow at MIT Media Lab and Visiting Professor of Financial Engineering at EPFL.
- His prior experience includes Managing Director at Bank of America Merrill Lynch, leading the quant group.
- Also worked for Citadel Investment Group in Chicago, Credit Suisse, Deutsche Bank and Bankers Trust.
- He developed Oyente, the first open-source security analyzer for Ethereum smart contracts.
- Co-founded SmartPool, another open source project which embraces decentralization of mining pools in existing cryptocurrency.
- Founder of Kyber Network
- Fintech veteran with more than 20 years of experience in Corporate and Investment Banking.
- Specializes in leading corporate banking initiatives for the adoption of blockchain technology and Crypto Finance.
- Has worked with Credit Suisse and Deutsche Bank.
TOKENS and SUPPLY
- Ticker: ZIL
- Token type: ERC20
- ICO Token Price: 1 ZIL = 0.0038 USD (0.0000084656 ETH) or 116,060 ZEIL per 1 ETH
- Locked ETH at $450 USD/ETH
- Fundraising Goal: $22M USD
- Sold on pre-sale: $20M USD (PRE-SALE + STRATEGIC INVESTORS)
- Bonus Structure: 10-15% presale bonus for early contributors
- Total Tokens: 21,000,000,000
- Available for Token Sale: 30%
- Token Distribution: 30% to crowd sale contributors, 40% to miners, 30% to project for research and development, bounty programs, team allocation
- Whitelist: YES
- Know Your Customer (KYC): YES
- Could not participate in ICO: USA, CHINA, JAPAN
- Min/Max Personal Cap: 2 ETH / 5 ETH
The allocation of proceeds are as follows:
- 80% for Zilliqa’s R&D and operations for next 3-4 years
- 15% to Anquan Capital Pte. Ltd. – the company that developed the core technology behind their scalable blockchain
- 5% awarded to the founding team who have been developing Zilliqa
KEY PARTNERSHIPS AND ASSOCIATIONS
COMPETITORS AND KEY CONCERNS
- One of the first blockchain platforms designed to securely scale processing transactions in an open, permissionless distributed network.
- Core feature – sharding – which is the division of the network into several smaller component networks capable of processing transactions in parallel.
- Zilliqa is capable of rival the transaction speeds of traditional centralized payment methods such as VISA and MasterCard.
- Significantly reduced energy costs associated with PoW. Costs of running a Zilliqa would be at about 1/10 of running an Ethereum node today.
- The mining cost for the network / number of transactions processed will stay constant.
- High aggregated fees for the miners and low transaction fee for the users.
- The team (founders, developers and advisors) is very impressive with great experience and network.
- Significant Institutional influence, interest and investment.
- Total token supply ZIL is 21B.
- Currently Zilliqa is trading at $0.059 USD with a market cap of $383M USD.
- Circulating supply of 6.5B with a total supply of 12.6B.
- Key partnerships with Mindshare and Bluzelle.
- Targeting a niche market where their services are actually needed, instead of attempting to tackle the whole market like the competitors stated above.