Cryptocurrency Zilliqa: full investor guide

Cryptocurrency Zilliqa: full investor guide

Due to the abundance of offers in the cryptocurrency market, many promising coins escape the attention of investors. That is exactly what happened to Zilliqa. If a week ago, the rate of cryptocurrency did not suddenly jump up, just a few investors would have learned about the project, which theoretically could solve the main problems of the blockchain. What is Zilliqa cryptocurrency and what are its key features? We will describe in this article!

What is Zilliqa cryptocurrency?

The main idea of Zilliqa developers is to build a self-developing cryptocurrency platform with almost infinite scalability. A group of Singaporean scientists used sharding to achieve this result, in which a large amount of data is broken into small fragments (or fragments, in English – “shards”). However, how is this implemented in cryptocurrency?

Blockchain is divided into separate parts, which simultaneously process different groups of nodes (shards). Each group does its part of the work, so that the overall work is performed much faster than in networks that do not use sharding. This approach allows you to simultaneously process several thousand transactions without slowing down the network.

As data increases, the network will be broken into even more fragments. In other words, the network is constantly being scaled and “tailored” to new loads. At the same time, neither its throughput nor the speed of transaction processing suffers.

The developers have added a few more technical innovations to the sharding mechanism. For example, the Proof of Work algorithm is used only to protect against cyber attacks and a modified “Byzantine generals task” (ZVG) protocol is used to reach consensus on the network. It eliminates double spending and shortens transaction confirmation time.

In addition, based on Zilliqa, you can create smart contracts and decentralized applications. They are also processed by the sharding method, so they run as fast as possible and do not overload the network.

The launch of smart contracts and applications used internal platform token – ZIL for payment transactions. So far, the network is working in test mode (Testnet) and the tokens in it are not yet functioning. With the launch of the full-fledged platform (Mainnet), ZIL will become the main fuel of the entire system.

Where to buy and how to store Zilliqa cryptocurrency?

The first who bought tokens were investors who had time to take part in the ICO, which was held in January of this year. They will get their coins after running Mainnet.

The total emission of ZIL will be 21 billion coins. 60% of them will be generated by the developers themselves (7.2 billion coins already exist) and the remaining 40% will be mined by POS miners.

The founders of Zilliqa plan to stretch the extraction of the remaining coins for 10 years in order to gradually increase the complexity of mining and attract as many miners to the project. For now, it is impossible to mine ZIL. The only option is to buy coins on cryptocurrency exchanges.

Now Zilliqa is trading at more than 30 sites. The main part of trading is conducted on the well-known exchanges Binance (30%), Huobi (14%), Bithumb, Upbit, (8% each). ZIL is trading in pairs with BTC, ETH and USDT on them.

There is no separate crypto-purse for storing coins yet. So far, you can keep ZIL on wallets with support for ERC20 MyEtherWallet, MetaMask, Mist, Ledger Nano S and others.

Soon, the developers are planning to withdraw the coin to other top exchanges and after the release of a full-fledged platform, they will release the official crypto wallet for ZIL.

However, most investors are interested not in technical aspects, but in the investment attractiveness of cryptocurrency. You need to compare the advantages and disadvantages of Zilliqa to determine it.

Zilliqa cryptocurrency: key benefits

Experienced blockchain experts, entrepreneurs and scientists work on Zilliqa. Sishnu Dong, who leads the development team, is considered one of the best in the field of cyber security and blockchain technologies. Pratik Saxena is known as the creator of top designs for browser platforms. Kristel Kvek is a leading expert in the digital economy. Yoki Jian has been involved in Internet security and cryptography for many years. All of them have been working on Zilliqa since 2016 and specialists have no reason to doubt their professionalism.

Zilliqa already collaborates with large venture capital funds (Kenetic Capital, FBG Capital, Signum Capital), blockchain companies (MetaChain and BitcoinSuisse) and such business giants as Linklaters (legal services), IKX (entertainment), Mindshare (marketing) and others. All of them are interested in the development of Zilliqa technologies and actively invest their money in them.

Reducing the speed of transaction processing and the deterioration of network bandwidth with increasing loads are the fundamental problems of all top cryptocurrencies. With the growing popularity of the network, the number of transactions increases, which leads to an increase in the “weight” of the blocks and an overload of the blockchain. As a result, the network becomes too heavy and slows down. According to experts, this is the main reason why cryptocurrencies can not compete with payment systems like VISA or SWIFT.

Zilliqa can change this. Due to the sharding and the self-development of the system, the problem of scalability disappears altogether. At the moment, developers managed to achieve a throughput of 2488 transactions per second (this is 250 times more than Ethereum). This is only in test mode, when 3600 nodes are online. According to specialists, if their number is increased to 10,000, the capacity of the Zilliqa will reach the level of VISA. Other cryptocurrencies can not even dream of such indicators.

Inspired by the success of Ethereum, many developers have added the function of smart contracts to their cryptocurrency. However, only Zilliqa offers contracts with a high level of concurrency. This means that the user can launch and monitor several smart contracts at once and quickly switch between them. According to experts, such a mechanism will effectively manage the overall economy, organize distributed advertising networks, conduct parallel auctions, and so on.

Anyone who has found 2 ETH to purchase tokens could join ICO Zilliqa. This is the minimum threshold for entry set by the developers. However, they set the upper bar for investors – 5 ETH.

Even if someone planned to purchase more cheap tokens to hold them, increasing the price and merge at the right time, he did not succeed.

According to the developers, their goal is not only to solve the problem of cryptocurrency scalability, but also to make them truly decentralized and widely available. However, even in this barrel of honey there was a bug.

Zilliqa cryptocurrency: main disadvantages

The main problem Zilliqa experts call the narrow focus of the platform, because of which, in the eyes of users, it is much inferior to other cryptocurrencies.

For example, if Ethereum launches the Casper network, Zilliqa may not be needed at all. In addition, ZCoin specialists are already working on solving the problem of scalability and their project enjoys much greater support among users.

The Zilliqa team is led by the desire to make a quality product. They spent the whole two years on the development and initial testing of the technology. Many experts are confident that if the project started in 2016, it would have been a clear success. A break in 2018 will be much more difficult.

How and why did the cost of Zilliqa cryptocurrency change?

During the ICO in January, investors could purchase Zilliqa tokens at a price of $ 0.0038. However, as soon as the coin appeared on cryptocurrency exchanges, its value immediately rose to 13 cents. The market capitalization of Zilliqa at the beginning of the year was $ 22 million.

However,, despite a fairly successful start, in February, the coin performance declined. Thanks to the attraction of large investors, Zilliqa’s capitalization rose to $ 300 million, but amid a general decline in the market, the value of the coin dropped to four cents.

The cryptocurrency showed a neutral trend in March-April and was not of particular interest to investors. The price of ZIL did not rise above three-four cents, and the capitalization fell to $ 280 million.

However, at the end of April, news appeared about the addition of a coin to the well-known cryptocurrency exchanges Bithumb, Upbit and OKEx. In addition, the developers managed to conclude contracts with large Asian corporations. Favorable news background immediately raised the rate of cryptocurrency. The cost of ZIL rose to 10 cents and the capitalization exceeded 700 million dollars.

The announced stock exchanges one after another took the coin in the first decade of May and its figures soared even higher. At the time of this writing, the cost of ZIL is 16 cents and the market capitalization has already overcome the $ 1 billion barrier and brought cryptocurrency to 24th place in the CoinMarketCup rating.

Is it worth investing in Zilliqa cryptocurrency?

It will be possible to make accurate predictions about the Zilliqa course only after the launch of a full-fledged network, which is scheduled for June this year. So far, analysts give only approximate forecasts – negative and positive.

Given the professionalism of the developers and the exact adherence to the stated plans in the first quarter of this year, the first point can be discarded. However, the other two cause serious concerns among experts.

If a full-fledged network does not attract a large number of users or Zilliqa fades against the background of more successful competitors, you can not count on the price increase ZIL. Moreover, it can enter a downtrend. After all, now the positive dynamics is associated only with the expectation of Mainnet and the addition of a coin to popular exchanges.

A positive outlook will work with a successful launch of the network and interest in large companies in Zilliqa. After all, given the specifics of the technology, the developers focus on the business segment and the financial sector. If Zilliqa is widely used in these areas, the value of the coin will go up.

Analysts call the approximate figures: to the end of 2018 – $ 3, 2019 – $ 15, 2020 – $ 30 for 1ZIL. That is, with a favorable development of the situation, the yield from inspections in Zilliqa will be about 18,000% in two years.

According to current forecasts, by the end of May the value of the coin will stabilize at around 20 cents. However, in the coming days, the course will still be adjusted after a sharp jump associated with the intensive trade of ZIL on the newly added stock exchanges.

Next will need to navigate the situation. If Mainnet fails, it’s better to get rid of the coins. If the project is successful, it makes sense to hold assets for a long-term.

Experts advise allocating no more than 10-15% of the cryptocurrency portfolio for ZIL to reduce investment risks and follow the project news on the official website