Zilliqa is a blockchain platform emphasizing scalability and transaction processing efficiency. Employing sharding technology, Zilliqa divides the network into smaller groups of nodes (shards) to process transactions concurrently. It serves as a solution to Ethereum's scalability and transaction processing limitations. ^[1]

Amrit Kumar, Max Kantelia, Xinshu Dong, Prateek Saxena, and Juzar Motiwalla co-founded Zilliqa in 2017. Matt Dyer is the CEO of Zilliqa. ^[1]

Overview

Zilliqa is an ERC-20 blockchain platform known for its scalability, efficiency, and security approach. At its core, Zilliqa addresses the scalability challenges of traditional blockchain platforms by implementing sharding technology. By partitioning the network into smaller groups of nodes (shards) to process transactions in parallel, Zilliqa enhances throughput, enabling the network to handle high transaction volumes efficiently. This scalability enhancement is coupled with a hybrid consensus mechanism, combining practical Byzantine Fault Tolerance (pBFT) and Proof-of-Work (PoW), ensuring robustness against potential attacks while maintaining decentralization. ^[2]

In addition to scalability and security, Zilliqa provides a developer-friendly environment for building decentralized applications (dApps) through its support for smart contracts. Utilizing its native programming language, Scilla (Smart Contract Intermediate-Level Language), Zilliqa emphasizes security by minimizing vulnerabilities in deployed smart contracts.^[2]

Zilliqa Group

Zilliqa Group, an integrated entity, oversees the development of Web3 and blockchain applications on the Zilliqa network. With a focus on advancing the Zilliqa blockchain, the transition from Zilliqa Research aims to establish a new corporate structure enabling subsidiaries to offer innovative services leveraging internal technology. This shift facilitates seamless network integration across industries, fostering the growth of blockchain-based applications. Companies like Roll1ng Thund3rz, previously incubated within Zilliqa, now operate independently under the Zilliqa Group umbrella, while blockchain development and operations remain consistent to support emerging use cases. ^[3]

Zilliqa 2

In September 2023, Zilliqa Group announced plans to upgrade Zilliqa to Zilliqa 2. This update improves network performance and utility while maintaining full compatibility with the current version, including EVM compatibility. Key enhancements include a faster consensus algorithm, improved scalability and sharding capabilities, a developer-centric design, and support for EVM-based smart contracts. Additionally, Zilliqa 2's sharding system offers programmable decentralization and privacy features, allowing customization of shards for specific use cases. ^[4]

Technology

Sharding

Sharding in Zilliqa encompasses network, transaction, and computational sharding, with network sharding being the foundational layer upon which other sharding mechanisms are built. ^[5]

• Network Sharding: Sharding in Zilliqa involves dividing the network into smaller groups called shards, enabling parallel transaction processing. This mechanism boosts scalability, as demonstrated by an example of a network divided into ten shards, each capable of processing transactions simultaneously. Although not new and rooted in database optimization, this concept was initially proposed in a 2015 academic paper co-authored by Zilliqa team members.
• Transaction Sharding: Transaction Sharding begins by assigning transactions to specific shards based on the sender's address, enabling parallel transaction processing. This approach ensures high throughput, where, for instance, in a network with two shards, transactions are directed to S1 or S2 based on the sender's address. However, this method is designed specifically for handling payment transactions. To effectively manage payment and smart contract transactions, a categorization system is implemented based on the types of accounts involved: user accounts, governed by users and lacking contract codes, and contract accounts, which contain contract codes.

Nodes

Within the Zilliqa Mainnet, various nodes fulfill distinct roles or offer specialized services. ^[6]

• Shard Nodes: Shard nodes in the Zilliqa Network function as mining nodes and are named for their assignment to clusters, or shards, within the network. Nodes within the same shard handle the designated transactions for that shard, achieving consensus to generate the shard's microblock. Shard nodes are rewarded with $ZIL after each DS epoch for their contributions. The DS committee determines membership in a shard following the successful submission of solutions to a Proof-of-Work (PoW) problem, occurring once per DS epoch.
• Directory Service (DS) Nodes: DS (Directory Service) nodes, also serving as mining nodes, have additional duties, including aggregating shard microblocks to form the Transaction Block and generating the DS Block at each DS epoch's onset. DS nodes receive $ZIL rewards like shard nodes at the DS epoch's end. The DS committee comprises these nodes, offering stability over multiple epochs compared to the ever-changing shards. Committee membership, determined by a higher difficulty Proof-of-Work, undergoes partial renewal each epoch. A DS node's tenure is influenced by its performance during the DS epoch.
• Lookup Nodes: Lookup nodes, functioning as full nodes, store complete blockchain data generated by DS and shard nodes, encompassing transactions, microblocks, Transaction Blocks, and DS Blocks. They serve as data sources for nodes syncing with or aiming to join the network. Additionally, lookups distribute transactions to shards and the DS Committee.
• Seed Nodes: Like lookup nodes, Seed nodes function as full nodes but do not directly send transactions to shards and the DS committee. Primarily, they handle JSON-RPC requests, including transaction creation. Seed nodes regularly bundle transactions and forward them to lookup nodes for eventual distribution to shards and the DS committee.
• Staked Seed Nodes (SSN): Staked seed nodes (SSNs) are seed nodes operated by staking partners to handle community JSON-RPC requests. In exchange for this service, SSNs regularly receive staking rewards in $ZILs, contingent upon their performance.

Scilla

Scilla, or Smart Contract Intermediate-Level Language, is tailored for the Zilliqa blockchain, focusing on smart contract safety. It adopts a structured approach to enhance application security by addressing vulnerabilities at the language level and supporting formal verification. Developed alongside formalized semantics and Coq proof assistant integration, Scilla utilizes Coq's advanced, dependently typed theory for mechanized proofs. Notable design choices in Scilla include separating computation and communication within contracts, ensuring standalone transitions for in-contract computations, and distinguishing between pure expressions, impure local state manipulations, and blockchain reflection for predictable contract behavior. ^[7][8]

ZilStream

ZilStream is a market tracking and data provider within the Zilliqa ecosystem, offering the community accurate and timely market data, news, and insights. Established in February 2021, ZilStream has served millions of users directly and through its API, which developers, traders, and businesses utilize to access real-time and historical market information. Leveraging TradingView technology, ZilStream provides comprehensive price charts, offering a robust platform for traders and investors globally. ^[9]

Ecosystem

ZilSwap

Zilswap is a decentralized exchange (DEX) on Zilliqa. Developed by Switcheo Labs, an experimental think tank lab, Zilswap employs a constant product automated market maker on a permissionless liquidity protocol akin to Uniswap. Users can directly trade ZIL or ZRC tokens on the Zilliqa blockchain from their wallets or contribute tokens to liquidity pools to earn passively as market makers. ^[10]

ZilBridge

ZilBridge, a collaborative project between Zilliqa, Switcheo Labs, and PolyNetwork, supported by Carbon Protocol, facilitates asset bridging between the Zilliqa and Ethereum Mainnet networks, with plans to support additional chains. ^[11]

ZILHive

ZILHive is Zilliqa's ecosystem growth division, established in 2019 to foster decentralized application development on Zilliqa's blockchain platform. It offers diverse programs catering to individuals at all stages of their blockchain journey, from students to industry professionals. ZILHive offers various programs, including the ZILHive Student Practicum, Incubator Program, and Accelerator Program, designed to support technical talent and entrepreneurial founders in developing blockchain applications. Furthermore, $5 million in grants is available to support promising projects on Zilliqa's platform. ^[12]

Metaminds

MetaMinds, formerly known as Metapolis, is the first Metaverse-as-a-Service (MaaS) platform provider. MetaMinds utilizes spatial web technologies to create immersive metaverse experiences for clients, customer interaction, and engagement. Its multi-tenant architecture allows various user groups to enjoy personalized metaverse experiences while sharing the same platform infrastructure and product line. Engineered for scalability, platform interoperability, and high performance, MetaMinds addresses current metaverse development bottlenecks and aims to set the standard for future metaverses. It offers clients private proof-of-concept testing and a subscription-based business model to enhance accessibility and adoption. ^[13]

ZIL

ZIL serves as the native token for the Zilliqa blockchain, facilitating decentralized applications from financial services to NFT marketplaces. It enables interaction with all dApps and platform services within the Zilliqa ecosystem. ZIL can be utilized for various purposes, including payment for goods and services, purchasing and selling NFTs, etc. ^[14]

Tokenomics

The total supply is 21,000,000,000 ZIL. The initial token launch date was August 31, 2017, and the initial distribution of ZIL was as follows: ^[15]

• 30.00% allocated to Early & Community Contributions
• 40.00% allocated to Mining Rewards
• 30.00% allocated to Company, Team, Agencies

Governance ZIL (gZIL)

Launched on October 14, 2020, Governance ZIL (gZIL) serves as the governance token for the Zilliqa network, allowing long-term token holders to engage in ecosystem decisions. Each gZIL token represents one vote, scaling voting power according to the amount held. ^[16]

Partnerships

Google Cloud

On September 13, 2023, Zilliqa Group announced a multi-year strategic alliance with Google Cloud. The collaboration aimed to enhance the scalability, resilience, and data availability of the Zilliqa layer-1 blockchain protocol. With Google Cloud's involvement, ventures within Zilliqa Group and across the wider ecosystem were expected to benefit from a more robust platform supporting various Web3 services and decentralized applications (dApps) built on the Zilliqa blockchain. ^[17]

Google Cloud became a staked seed node (SSN) operator on the Zilliqa network, joining the existing set of 28 SSN operators. In this role, Google Cloud would provide node infrastructure hosting services while contributing to transaction validation across the network, facilitating increased participation in its decentralization, securitization, and governance. Additionally, Zilliqa Group had selected Google Cloud as its strategic cloud provider, planning to leverage Google Cloud's open, secure, scalable, and energy-efficient infrastructure and services to enhance the flexibility, resilience, and data availability of its blockchain. ^[17][18]

Our strategic alliance with Google Cloud is more than just a technological collaboration; it's a strategic alignment to further the ambitions of our group of ventures and revenue-generating organizations. Google Cloud's infrastructure expertise, combined with itheir role as a staked seed node partner, underscores our commitment to excellence, both within the Zilliqa Group of companies and across the wider ecosystem. Together, we're setting the stage for a new wave of innovation and growth in the Web3 space. - Zilliqa Group Head of Sales, Matt Dyer.

GMEX ZERO13

In September 2023, Zilliqa announced its partnership with GMEX Group and its initiative ZERO13, the digital climate fintech aggregation ecosystem, to launch the carbon offset platform. The platform will encourage retail customers to engage with corporate environmental initiatives. Zilliqa Group and GMEX ZERO13 will deliver a platform that uses the blockchain-based currency EVP to represent carbon credit offsets. When they purchase goods or services, customers of brands partnered with Zilliqa will receive EVP tokens on the Zilliqa blockchain, enabling them to offset their carbon footprint directly through funding various environmental initiatives. ^[19]

ChainUp

On October 31, 2023, Zilliqa Group announced a partnership with ChainUp to expand its Web3 infrastructure offerings and enhance its partnerships related to loyalty, gaming, tokenization, and metaverse projects. As a result of this collaboration, ChainUp became an industrial-grade infrastructure partner for Zilliqa Group, strengthening its ability to provide Web3 integrations across various industries and expanding the network's market accessibility through its extensive connections to cryptocurrency exchanges, Web3 businesses, and investors worldwide. ^[20]

As part of the partnership, ChainUp also operated a Staked Seed Node (SSN) on the public Zilliqa network, contributing to decentralization, archiving transaction history, and providing services to end-users. ^[20]