ZIL

Overview of ZIL

Zilliqa (ZIL) is the beating heart of the Zilliqa blockchain, functioning primarily as a Utility Token. It is a type of cryptocurrency that was founded in 2017 by Prateek Saxena, Xinshu Dong, and Amrit Kumar. The digital asset operates on its own blockchain platform, known for its use of sharding technology to increase network scalability. ZIL can be traded on several exchanges, including but not limited to Binance, Huobi, and Okex. Furthermore, individuals can store ZIL tokens in a variety of wallets, such as MyEtherWallet, the Ledger Wallet, and the Trezor Wallet.

Pros and Cons

What Makes ZIL Unique？

Zilliqa (ZIL) introduces a key innovation in the blockchain technology space - sharding. This is a method where the network is divided into several smaller component networks, termed as 'shards', capable of processing transactions and smart contracts in parallel. Sharding largely enhances network scalability and improves the transaction speed thereby capable of supporting more users and data.

How Does ZIL Work？

Zilliqa operates on a hybrid consensus protocol that combines Proof of Work (PoW) and Byzantine Fault Tolerance (BFT). The unique thing about Zilliqa's operation mode is that PoW is used only to establish node identities and prevent Sybil attacks, rather than for block generation, as in Bitcoin.

In Zilliqa's network, the nodes first perform PoW. Nodes that successfully complete their PoW are grouped together into networks known as shards. Each shard, consisting of about 600 nodes, is capable of processing transactions in parallel with other shards, thus increasing the overall transaction rate of the network.

This brings us to Zilliqa's key innovation, sharding. Sharding divides a network into smaller, more manageable parts (shards), each capable of processing its own microblocks. The microblocks from each shard are then merged into one complete block that is added to the blockchain. By processing transactions in smaller, parallel blocks, sharding increases Zilliqa's capability to handle large volumes of transactions, enhancing the scalability of the network.

The Zilliqa network also uses the Scilla programming language for smart contracts. Scilla is designed with a focus on security and correctness and allows formal verification of contracts, a preventative measure against bugs and security vulnerabilities.

Exchanges to Buy ZIL

Several cryptocurrency exchanges support the purchase and trading of Zilliqa (ZIL).

1. Binance: Binance supports a multitude of pairs for ZIL, including ZIL/BTC, ZIL/ETH, ZIL/BNB, and ZIL/USDT among others. See this link for details on how to buy ZIL: https://www.binance.com/en/how-to-buy/zilliqa.

Step 1: Create a free account on the Binance website or the app.

Binance is a centralized exchange where you can buy several cryptocurrencies including Zilliqa. Before you can use the Binance platform, you'll need to open an account and verify your identification.

Step 2: Choose how you want to buy the Zilliqa asset.

Click on the “Buy Crypto” link on the top of the Binance website navigation to know about the available options to buy Zilliqa in your country.

Step 3: Check the payment details and fees.

You have 1 minute to confirm your order at the current price. After 1 minute, your order will be recalculated based on the current market price. You can click Refresh to see the new order amount.

Step 4: Store or use your Zilliqa in Binance.

Now that you bought your crypto, you can store it in your personal crypto wallet or simply hold it in your Binance account. You can also trade for other crypto or stake it on Binance Earn for passive income.

2. KuCoin: KuCoin has pairs for ZIL such as ZIL/BTC, ZIL/ETH, and ZIL/USDT. See this link for details on how to buy ZIL: https://www.kucoin.com/how-to-buy/zilliqa.

Step 1: Create Your Free KuCoin Account

Sign up on KuCoin with your email address/mobile phone number and country of residence, and create a strong password to secure your account.

Step 2: Secure Your Account

Ensure stronger protection of your account by setting Google 2FA code, anti-phishing code, and trading password.

Step 3: Verify Your Account

Verify your identity by entering your personal information and uploading a valid Photo ID.

Step 4: Add a Payment Method

Add a credit/debit card or bank account after verifying your KuCoin account.

Step 5: Buy Zilliqa (ZIL)

Use a variety of payment options to buy Zilliqa on KuCoin.

3. Okex: On Okex, you can trade ZIL with pairs such as ZIL/BTC, ZIL/ETH, and ZIL/USDT.

4. Bittrex: Bittrex offers pairs like ZIL/USD, ZIL/BTC, and ZIL/ETH.

5. Cryptopia: On Cryptopia, you can find pairs like ZIL/BTC and ZIL/LTC.

How to Store ZIL？

Storing Zilliqa (ZIL) involves selecting a compatible digital wallet to hold and manage the tokens. It's essential to consider factors like security, convenience of use, and accessibility while choosing a wallet.

1. Hardware Wallets: These are physical devices that can securely store cryptocurrency offline. Ledger and Trezor are two hardware wallets that are compatible with Zilliqa. These offer high-security levels as they keep the tokens offline and out of reach from potential hacking attempts.

2. Software Wallets: These are programs that can be installed on your devices. MyEtherWallet is an example of such a wallet that supports ZIL. Software wallets provide good security and are convenient for regular use, but they are not as secure as hardware wallets.

Is It Safe？

The Zilliqa network uses a hybrid consensus mechanism combining Proof-of-Work (PoW) and Byzantine Fault Tolerance (BFT) for security. This is generally considered secure, but no blockchain is completely immune to hacks or exploits.

The Scilla smart contract language used on Zilliqa aims to prevent common vulnerabilities found in other languages, potentially reducing the risk of smart contract-related attacks.

How to Earn ZIL Coins？

There are several ways to earn ZIL, each with its own advantages and disadvantages.

1. Staking:

This is the most common way to earn ZIL passively. You contribute your ZIL tokens to a validator node on the Zilliqa network, essentially helping to secure it and process transactions. In return, you earn rewards in the form of additional ZIL.

Pros: Passive income, relatively low risk.

Cons: Requires locking up your ZIL for a period, rewards can vary depending on network parameters and staking pool chosen.

2. Participating in dApps:

Many dApps built on the Zilliqa network offer rewards for various activities, such as playing games, providing liquidity, or completing tasks.

Pros: Can be more engaging than staking, potential for higher rewards.

Cons: Higher risk due to potential dApp vulnerabilities, requires active participation.

3. Trading ZIL:

You can try to buy ZIL low and sell it high for profit. However, this involves actively trading and carries significant risk due to the volatile nature of the cryptocurrency market.

Pros: Potential for high returns.

Cons: High risk of losing money, requires significant knowledge and experience.

FAQs

Q: What technology does Zilliqa use to handle scalability issues？

A: Zilliqa utilizes sharding technology, a method that breaks down the network into smaller components capable of processing transactions in parallel, thereby improving scalability.

Q: What is the underlying consensus mechanism that Zilliqa uses on its platform？

A: Zilliqa uses a hybrid consensus protocol that merges Proof of Work (PoW) and Byzantine Fault Tolerance (BFT) mechanisms.

Q: Are there specific wallets recommended for storing Zilliqa tokens？

A: Zilliqa (ZIL) can be held in numerous wallets, including but not limited to MyEtherWallet, the Ledger Wallet, and the Trezor Wallet.