Zilliqa is a public blockchain created with the goal of addressing the challenges surrounding scalability and throughput. Its approach involves implementing sharding, a technique that enhances transaction speed and establishes a scalable and secure platform.
In this article, we're going to discuss the Zilliqa token and guide you through the process of staking it using the Torch wallet.
What Is the Zilliqa blockchain?
Imagine Zilliqa as a special blockchain platform, a place where developers can build smart contracts. These are self-executing contracts with the terms of the agreement directly written into code.
Zilliqa's has an interesting approach to making sure transactions are legit, it employs a combo of Proof-of-Work and Practical Byzantine Fault Tolerance (PoW and pBFT). Essentially, PoW requires nodes — the participants in the network — to solve complex mathematical puzzles, making it tough for anyone to dupe the system since they'd need heaps of computing power. This 'first-come-first-serve' basis ensures that the first node to solve the puzzle and propose a new block gets rewarded in ZIL, Zilliqa's native cryptocurrency.
Speaking of ZIL, this is what you'll use for all transactions on the Zilliqa network. And the neat part? When you pay a transaction fee, it's not just disappearing into the ether — it's compensating the nodes. These are the workhorses running all the complex calculations that keep the Zilliqa operation ticking along.
What's more, Zilliqa is designed to be low-cost, scalable, and offers cost-effective mining, making it an attractive choice for many. You can store your ZIL in a compatible wallet, and there's potential for profit down the line.
What Is the Torch Wallet?
Torch is built with a focus on community. More than just a tool, Torch aims to work alongside you, not just for you — becoming an essential part of your crypto experience. Its unique features place it a cut above other wallets, providing several advantages such as:
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Autostaking;
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Instant unstaking;
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Easily executed limit and market orders;
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A reputation point system
Torch lets you control your private keys while storing, growing, and earning rewards for your crypto assets simply and safely. It eliminates the intermediaries and ensures you have simple and direct communication in financial matters.
The autostaking feature in Torch takes the reins in managing your stakes, using mathematical computations to find the best staking and reward claiming setups. This lets you step back from constant market monitoring and enjoy automated staking without sacrificing potential earnings.
The instant unstaking is another unique feature. Unlike other wallets that adhere to a standard 14-day unstaking period, Torch allows you to unstake your ZIL immediately. This service comes with a small fee, which ultimately flows back to benefit the Ignite DAO community.
The Torch wallet's built-in reputation system is another pioneering feature that offers numerous benefits to its users, elevating their wallet experience to new heights.
Even if Torch happens to go offline, your tokens will remain accessible. The smart contract wallet is an extension of your seed phrase or funding wallet, a non-custodial solution ensuring you are always in command of your assets. This offers both convenience and peace of mind.
Why Stake ZIL?
Staking ZIL with a reputable staking pool such as Everstake allows you to earn rewards without your coins leaving your wallet. Zilliqa's combination of sharding, which is splitting the network into smaller pieces (or shards) for faster transaction processing, and its unique approach to network security and coin issuance, provides users with enhanced speed, cost-effectiveness, and security. In essence, by staking your ZIL, you're not just earning rewards, you're also playing a role in supporting and securing the Zilliqa network.
How to Set Up the Torch Wallet?
This section will walk you through the process of creating a Torch Wallet. Follow these simple steps, the process is quite straightforward.
Step 1: Download Torch Wallet
To begin with, you need to visit your device's respective app store — Apple Store or Google Play, and download the Torch wallet. Although this guide specifically illustrates the staking process on an iOS device, the steps remain largely similar across different platforms.
If you plan to use a Ledger device for added security, remember to enable Bluetooth connectivity on it.
Step 2: Familiarize Yourself with Torch Wallet
After successfully downloading Torch, take some time to explore and learn more about its features and functionalities. Understanding how the wallet works will provide a smoother staking process and enable you to utilize all the benefits it offers effectively. Whether it's sending or receiving tokens, checking balances, or staking, getting comfortable with the Torch wallet is a crucial next step.
Step 3: Set and Confirm a Four-Digit PIN for Your Wallet
For the safety of your Torch wallet, you need to establish a four-digit PIN. This serves as a security layer, protecting your app and ensuring that only you can access the wallet. Once you've decided on a PIN, input it into the app and confirm it. Remember to make this PIN something that's both secure and memorable to you.
Step 4: Import an Existing Wallet or Create a New Wallet
At this point, you have the option to import an existing wallet or create a new one. For the purposes of this guide, we will be creating a new wallet. Click on Generate seed phrase. This will provide you with a unique seed phrase that grants you direct access to your account and funds. This is a crucial step and needs to be handled with utmost care. Any loss or unauthorized exposure of your seed phrase can lead to the loss of your funds.
Next, transcribe your seed phrase on paper and proceed by clicking Next. It's important to note that securing your crypto assets requires a broader understanding. We highly recommend reading our article titled, Crypto Security Guide: How Not To Lose Your Funds When Using Cryptocurrency.
Step 5: Verify Your Seed Phrase
This is a confirmation step to ensure that you have correctly recorded your seed phrase. Enter the seed phrase you have written down, making sure to follow the correct order. Once you've entered the seed phrase, tap Next. This verification process provides an extra layer of security to protect your wallet and its assets.
Generating your smart wallet takes some time. Click Ok when your wallet is ready.
Step 6: Add ZIL Tokens to Your Newly Created Torch Wallet
Congratulations, you’ve now successfully created your Torch wallet! Your wallet's main screen displays the details of your funds for a specific blockchain. Before moving to the staking process, you need to load your wallet with ZIL tokens. To do this, click Receive and copy your wallet address. Use this address to transfer ZIL tokens into your wallet. With these tokens in your wallet, you'll be ready to start staking.
Step 7: Transfer USD to Your Smart Wallet
The next move is to fund your smart wallet. This involves transferring USD from your regular wallet balance into your smart wallet. To initiate this, click on Funding wallet balance. You'll be prompted to proceed with the transfer. Click Continue to finalize this transaction. This step is important as it ensures you have the necessary funds in your smart wallet for the subsequent staking process.
Step 8: Transfer ZIL Tokens
The next step involves selecting the specific tokens to transfer. Choose the ZIL tab and select the amount of ZIL tokens you wish to move from your regular wallet to your smart wallet. This could be all or a part of your ZIL token balance, depending on your preferences and staking strategy. After specifying the quantity, confirm the transfer. This step moves the tokens to your smart wallet, making them ready for staking.
Step 9: Start Staking
Once the transfer is complete, you will receive a notification confirming the successful transaction. Now that your ZIL tokens are in your smart wallet, you're ready to stake them. To initiate the staking process, simply click on the Staking tab. This step brings you closer to earning rewards through your staked ZIL tokens and actively participating in the network's consensus mechanism.
How to Stake ZIL Using the Torch Wallet?
In the 'Staking' section, click the Stake now button. You will then see a list of active Zilliqa validators. From this list, choose a validator you deem reliable, for instance, Everstake and specify the amount of ZIL tokens you wish to stake. Please remember, the minimum amount to stake is 10 ZIL. You should also reserve some coins to cover future transaction fees, or replenish the wallet again if you have staked the entire amount.
Once you have staked your ZIL tokens, the rewards start to accumulate. You can view these details in the 'Staking' section. This section also allows you to claim rewards, unstake, and transfer your ZIL tokens.
If at any point you wish to undelegate your ZIL tokens, simply click Unstake. You will then need to enter the number of tokens you want to unstake and click Withdraw.
You can boost your yields and maintain control over your tokens by delegating them to Everstake. Known for serving as a reputable validator across over 70 blockchains, Everstake provides a robust platform to optimize your returns.
The commitment of Everstake's team, which encompasses community, DevOps, and R&D experts, ensures seamless and productive staking. To avail of 24/7 support and stay updated with all Zilliqa events, don't hesitate to reach out to our Zilliqa Blockchain Manager on Twitter.
