Zilliqa is the world's first sharding-based blockchain designed to scale to thousands of TPS. It enables developers to build scalable dApps, from DeFi services to NFT marketplaces, without worrying about high transaction fees, low speed and scalability.
This is exactly why we decided to join the Zilliqa network and educate the audience about what Zilliqa is, how it’s technically different from other blockchains, and how to stake its native token $ZIL.
Zilliqa Blockchain
Let’s get a thorough look at the crucial elements of the technologies Zilliqa uses to deliver value to its users.
What Is the Zilliqa Blockchain?
Zilliqa's technology is centered around its sharding infrastructure. It used to be the first sharding-based public blockchain in the world. Sharding is a solution to the problem of blockchain scalability.
It breaks the database or blocks into smaller fragments called 'shards,' and each validator is responsible for processing only part of the network's data. In Bitcoin and Ethereum, for example, all validators must process and validate all transactions on the blockchain.
It demands extreme processing power and results in lower network throughput (speed) in terms of TPS. It's easier to avoid creating a backlog of transactions, lowering transaction times by spreading traffic across multiple chains available on the same network.
Staking and Mining
Zilliqa has a unique approach to mining that combines PoW elements for Sybil resistance (preventing a 51% attack) and the BFT system for consensus reliability.
Delegators can earn rewards by delegating their $ZIL to validators. In return, delegators are paid blockchain transaction fees as a reward.
The combination of sharding and its unique approach to security and issuance brings speed, cost, and security benefits to Zilliqa users.
The combination of PoW and Practical BFT helps Zilliqa:
- Enhance the network security.
- Reduce the carbon footprint.
- Solve the scalability and slow transaction speed issues.
Scilla: The Zilliqa Smart Contract Language
Scilla is short for smart contract intermediate-level language. It's a peer-reviewed smart contract language designed specifically for the Zilliqa blockchain. The developers say that Scilla is 'made for DeFi' because:
- With Scilla, developers can easily identify generic security vulnerabilities.
- It ensures bug-free codes.
- The language is amenable to format verifications.
Scilla's framework lets developers quickly identify generic security vulnerabilities and simplifies writing bug-free code.
The $ZIL Token
$ZIL token can be used as a store of value, medium of exchange, or income-generating asset. Zilliqa delegators will be allowed to participate in the governance of the Zilliqa ecosystem. Their voting power is proportional to the value of $ZIL staked.
The capped token supply is designed to make the $ZIL value robust and consistent, potentially making it an excellent store of value in the long term.
Zilliqa's NFT Marketplace
Zilliqa's speed, security, scalability, and cost make it an attractive option for developers and creators to utilize the power of the blockchain. This combination of qualities makes Zilliqa a stunning home for DeFi services and protocols, NFTs, and dApps.
Zilliqa has its own official NFT marketplace, the Zilliqa Marketplace, allowing artists to mint and sell their work. It will enable NFT artists to create their stores within the market to connect with their fans, and there is also the option to pair physical and virtual artworks together for sale.
Staking Zilliqa
Staking as compared to mining is an eco and more sustainable way to secure the blockchain.
It's an excellent way to earn rewards while holding a coin. Users earn rewards for ensuring the ecosystem's security by staking Zilliqa. The APR depends on the total amount of $ZIL in circulation at any time. The current APR is approximately 14%, which is higher than those on the other chains. It makes staking $ZIL a profitable business.
Let’s see how users can stake $ZIL.
How to Stake Zilliqa?
There are three steps involved to stake Zilliqa:
- Choose a wallet.
- Choose a Staked Seed Node Operator.
Choose a Wallet to Stake $ZIL
You can choose from the following wallets to stake Zilliqa’s $ZIL:
- Moonlet
- ZilPay
- Ledger
- Guarda Wallet
- Zillet
- Atomic Wallet
Here are the main things to consider when selecting a crypto wallet:
- Security features. Consider looking for 2FA and multi-signature.
- Check wallet fees. The money you spend on using the wallet can be overwhelming, with withdrawal fees starting from 3%.
- Supported coins. Check first what coins you want to work with and look for them in the wallet you want to get.
- Exchanging or staking provides integration. A connection to such platforms through the wallet will save you time and money that you could have to spend on additional providers.
Once you’ve set up and transferred $ZIL to your wallet, move on to the next step.
What Is a Staked Seed Node (SSN) on Zilliqa?
A Staked Seed Node is a validator of the Zilliqa network. A Staked Seed Node (SSN) price is a variation of a seed price. SSNs are also used by interacting partners and are intended to respond to JSON-RPC requests from the community. In exchange for the work, these nodes are always paid in the form of $ZIL. Compensation is determined based on SSN performance.
The operators who act as network validators manage Seed Nodes. This is why you need to choose an SSN operator next.
Select a Staked Seed Node Operator
The further step in the process is to select a Staked Seed Node Operator. A Seed Node Operator is a specific node that logs the history of the blockchain network. It allows other seed nodes to locate and synchronize the blockchain's data so that more nodes can join.
Users delegate their tokens to an SSN operator. If they pass the threshold of 10 million $ZIL staked, they become active nodes and start earning rewards for contributing to the security and functionality of the network. SSN operators handle the technical work, while you earn rewards for delegating your stake to them.
There are currently 13 Staked Seed Node Operators, including Moonlet, Atomic Wallet and Everstake.
There are some wallets where you may stake ZIL directly, such as Atomic Wallet and Moonlet. If you have another wallet, you will need to stake via Zillion or Zillet.
To stake your $ZIL with an SSN operator, a user should connect their wallet to the Zillion portal and stake it from their interface.
Consider these main points while choosing an SSN operator:
- Commission. Not too high, not too low. Check that to ensure you will not spend lots of revenue on withdrawing funds and paying the operator. There is a fee of 60 $ZIL per transaction, and the minimum staking amount is 10 $ZIL.
- Uptime.
- Community sentiment & participation in the community.
- Voting.
- KOLs mentioned in the press and media.
How Much $ZIL Do I Need to Stake?
Any user must stake a minimum of 10 $ZIL. Still, you need to ensure you have at least 100 $ZIL after staking to pay for gas fees for future transactions,,such as withdrawals.
There is a minimum bonding period of 14 days to incentivize and ensure the security and stability of the network through staking.
Your Zilliqa Staking Rewards
First, log into the Zillion portal and connect to the wallet. There, a user can claim their rewards and send them to the wallet. Before that, they must ensure they have enough gas to cover the transaction fee for claiming the bonuses.
The Zilliqa website recommends waiting until a user has earned at least 10 $ZIL before claiming or compounding their rewards. The gas required to stake an initial $ZIL or stake back the rewards will be roughly 3-6 $ZIL.
Wrap Up
The Zilliqa blockchain is a nod to the quality of sharding technology. Zilliqa has reliable staking providers that consider the unique technology of sharding that boosts TPS and leaves almost no carbon footprint. All of that leads to the future of Web3.
Find out more:
For any information about Zilliqa, please contact our Blockchain Manager on Twitter.
