Zilliqa Crypto - Tens of Millions of Dollars Daily Trading Volume
Zilliqa (ZIL) is a cryptocurrency which launched via an initial coin offering (ICO) at the beginning of 2018. The ZIL token was issued with ERC-20, which is an easy and popular way to create new cryptocurrencies with the Ethereum protocol. A total of 12.6 billion coins were created in the genesis block, and 6.5 billion coins are in circulation at this time.
The price per ZIL is roughly 6 cents, yielding a market cap of $463 million. This is in the top 50 market caps out of the thousands of different cryptocurrencies; combined with trading volume of tens of millions of dollars per day it is clear that ZIL is a widely used cryptocurrency and therefore important to know about if you are a crypto enthusiast, investor, or trader.
Problems Plaguing Major Cryptos Like Bitcoin
Transaction speed scaling has been a major obstacle for cryptocurrencies, and Zilliqa introduces revolutionary technology which tackles this problem. The most popular and valuable cryptocurrency is Bitcoin, and it currently has a market cap of $138 billion, yet it can only handle 3.3-7 transactions per second. Bitcoin block size is limited and each block can only include a certain amount of transactions. In order to get transactions confirmed as quick as possible, users increase the Bitcoin transaction fee to get in the front of the line, resulting in lesser fee transactions needing to wait until higher fee transactions are confirmed.
This can result in a vicious cycle that leads to exorbitant fees. In late 2017, the average Bitcoin transaction fee hit $40, crippling its usability as a currency. Since that time, Bitcoin fees have steadily dropped and are now at a reasonable 20 cents per transaction. However, this fee spike scenario may occur again in the future, and regardless, there are still only 3.3-7 transactions per second on the Bitcoin network. This simply cannot compete with the transaction frequency of the global centralized banking system; Visa can handle 24,000 transactions per second.
As Many Transactions As Visa?
Zilliqa is the first decentralized blockchain-based cryptocurrency that has the potential to compete with the transaction frequency of VISA. It uses proof-of-work (PoW) mining to maintain and secure its network like Bitcoin, but it partitions the mining network into shards which run in parallel. As the number of miners on the network increases, the number of shards running in parallel increases, and this exponentially increases the number of transactions that can be confirmed per second.
Notably, Zilliqa ran a test where 2400 nodes were partitioned into 3 shards, and collectively 1400 transactions were being confirmed per second. With 10,000 nodes, this crypto-platform could rival the transaction frequency of Visa and Mastercard. There is no increase in fees as transactions increase on this network, due to the increased capability to confirm transactions that correlates directly with network growth. Fees on this platform could be lower than Visa and Mastercard even at tens of thousands of transactions per second.
Potential to Beat Visa and Mastercard?
Smart contract technology is integrated into the Zilliqa blockchain that can handle this immense number of transactions, and this provides the framework for building decentralized financial apps that can rival Visa.
This crypto-platform seemingly solves the cryptocurrency scalability problem, and has the potential to handle more transactions than Visa since it is infinitely scalable. And transaction fees will be much lower than VISA. This is exactly the sort of innovation that is needed to make cryptocurrency spread across the globe and eventually become the primary means of monetary transfer.
It appears that this crypto has the potential to become a frontrunner in the cryptocurrency world. ZIL is intimately tied to its network's usage, and therefore it is probably good to buy ZIL for your cryptocurrency portfolio since Zilliqa usage and the price of ZIL will likely increase in the long term.
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This is not advice. Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always – do your homework and make decisions based on your own education. Seek information and look into projects before adding to or diversifying your portfolios.
References:
https://coinmarketcap.com/currencies/zilliqa/
https://hackernoon.com/zilliqa-a-game-changer-when-it-comes-to-blockchain-scalability-4fb1c13b1b8a
Posted from my blog with SteemPress : https://cryptocoremedia.com/zilliqa-crypto-transactions-visa/