August 10, 2021
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Bitcoin and other cryptocurrencies such as Ethereum can’t process all the demands on their network. In fact, they are facing a problem called “scalability”. As a result, the transaction fees raised over the time. Scalability had a long journey so far in cryptocurrency world. But, still has been an issue for existing blockchain technology. In such this situation Zilliqa came to fix the issue.

Zilliqa announced as a first blockchain, which designed to implement sharding. In other words, it allows for linear scaling as the blockchain grows in size.

Put simply, Zilliqa came to change how a blockchain reaches consensus. In fact, the sharding solution is able to scale with the size of the network. As a result, there is no limit to the number of transactions could be processed on this network.

The number of transactions that can be processed depends on the number of the nodes on the network. But, practically, Zilliqa can process thousands of transactions per second.

In addition, it promises to support smart contracts. But, it could be the major challenge for Zilliqa to run the smart contracts on a sharded network.

What is Zilliqa?

Zilliqa created by Prateek Saxena, Xinshu Dong and Amrit Kumar in 2017. This group of computer scientists are from university of California and Singapore. Although the team is not well known in crypto world and didn’t have any experience in similar projects, they brought an excellent idea to fix scalability issue.

The developer team explains Zilliqa as a “next generation, high throughput blockchain platform”. In simple words, it’s more advanced and faster blockchain platform.

Bitcoin and Ethereum were respectively the first and second generation of cryptocurrency. Now IOTA and Zilliqa could play the role as the third generation. In fact, it focused to solve the scalability issue, which Bitcoin and other cryptocurrencies are facing with from long time ago.

Zilliqa proposed a system called “sharding” in order to fix the scalability issue. Sharding used for the first time by this platform and could attract the crypto community attention.

What is Sharding?

The Zilliqa network divided into groups of nodes called shards. Every shard is made up of 600 nodes. In fact, they work and operate as a mini-blockchain networks. Shards work in a way that process transactions individually rather than as a group. Consequently, more transactions get processed on the network. Additionally, the network will process transactions faster as it grows. It means, that the more shards operating, the more transactions are processed.

For instance, Zilliqa processed 1218 transactions per second by using only 3 shards. These 3 shards consist of 1800 nodes. The above result is from the its private testnet, which happened in October 2017. Clearly, it’s more than ten times faster than other platforms such as Bitcoin.

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