Zilliqa is a public blockchain platform founded back in 2016 by a group of academics, entrepreneurs, and engineers that included Amrit Kumar, Jia Yaoqi, Max Kantelia, and Prateek Saxena. The team introduced the Zilliqa mainnet in January 2019. The native crypto token of the platform is ZIL.
The Zilliqa platform is scalable and secure enough to enable the easy and swift development of various blockchain-powered applications, such as data-driven decentralized applications. The developers intended to make Zilliqa the first high-efficiency public blockchain capable of processing thousands of transactions per second. To achieve that, the protocol implements a feature known as ‘sharding’.
Now, you might be wondering what sharding is. So before we get into the Zilliqa price prediction for 2021, let’s first see what this sharding is all about and how it benefits the Zilliqa platform, shall we?
So, What is Sharding?
Sharding refers to the process of splitting a blockchain into smaller partitions called ‘shards’. Each of these shards can hold a unique state – an independent set of account balances and smart contracts – and has distinct characteristics.
Now, each node on a regular blockchain network stores all states, which slows down the processing of transactions on the chain. The more nodes there are on a blockchain network, the slower the network becomes. However, with sharding, a higher number of transactions can be processed on a blockchain every second. Sharding distributes the workload of a blockchain between singular nodes, so each node can be responsible for only the set of data within it and doesn’t need to carry records of all transactions on the network. The use of sharding thus gives Zilliqa heightened scalability compared to its contemporaries and allows the platform to process an increased number of transactions per second.
So, What Benefits Does Sharding Bring to Zilliqa?
The sharded architecture of Zilliqa gives the platform quite a few advantages over its contemporaries, including increased scalability and greater security. Here are some of the many benefits sharding brings to Zilliqa:
- Scalability: As mentioned before, the sharding architecture makes Zilliqa a much more scalable blockchain platform than most others. Estimated, if six shards (each with 600 nodes) operate on the Zilliqa network at once, about 2828 transactions will get processed per second.
- Decentralization: Even though there are multiple shards, Zilliqa does not require a coordinator to process all the transactions and stays a decentralized protocol.
- Lower Transaction Fees: As Zilliqa’s operational capacity is far greater than Bitcoin or Ethereum, the transaction charges are much lower for Zilliqa as well. A Zilliqa transaction costs around $0.000023, unlike Bitcoin’s $1.79, and Ethereum’s $0.016.
- Security: Zilliqa employs tested and verified security mechanisms and a smart contract language known as Scilla. Scilla deals with many vulnerabilities in the system that other smart contract languages overlook.
- Eco-Friendly Mining: On Zilliqa, you can mine for short periods of time and cut down on energy costs. It takes only a minute out of every 1-2 hours to mine ZIL.
- Compatibility: Zilliqa is compatible with a broad assortment of applications and wallets.
The ZIL Token:
The ZIL tokens were introduced even before the Zilliqa mainnet was launched; the coins were put in circulation on January 26, 2018. After the mainnet came to be, the developers behind Zilliqa transferred the tokens to the platform with a token swap in February 2020. The total supply of ZIL tokens is capped at 21 billion.
The Zilliqa protocol has already distributed 60% of all ZIL coins (about 12.6 billion tokens), and the remaining coins are to be generated through mining. The platform plans to have all Zilliqa coins out in circulation within ten years; With every year, the block mining rewards will grow smaller.
Now that we have all the important tidbits regarding the Zilliqa protocol and the ZIL token let’s get to the Zilliqa price prediction for 2021!
Zilliqa Coin Price Prediction:
Upon its launch in January 2018, the trading value of Zilliqa was $0.18. By mid-March, the price went down to $0.03. However, the ZIL coin price dramatically spiked in May and suddenly hit an all-time high of $0.23 on May 10. Zilliqa entered 2019 on a bearish note at the price of $0.01 and continued on more or less at a downtrend through 2019. Zilliqa reached 2020 at the cost of a shocking $0.004, and went down even further to $0.003 by mid-March, as the Covid-19 pandemic sent financial markets toppling all across the globe.
However, as more and more people looked for new alternative investment paths during the lockdown, Zilliqa recovered to $0.02 by mid-June 2020. After some ups and downs, Zilliqa finally ended 2020 at the value of $0.08.
Zilliqa entered 2021 at $0.08; however, the value started escalating immediately after as a greater number of investors began to take an interest in the project. In the upcoming days, the expected price of Zilliqa is projected to rise further as the platform develops and software upgrades take place. However, the Zilliqa coin price predictions also suggest that the value of ZIL might decrease again if the bears bring down the prices.
As of March 2021, the ZIL prices are at almost $0.18, and at the end of 2021, the expected price of the ZIL coin is to be $1. Zilliqa price predictions also say that ZIL might continue with a price of $1.5 in 2022.
And there it is – a thorough look at the Zilliqa network and how the ZIL coin might perform in 2021. We do hope this post helps you make better investment choices!
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