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What is Zilliqa (ZIL)?
Quick Facts
- Founded: 2017, headquartered in Singapore
- Type: Layer-1 smart contract blockchain
- Key innovation: First public blockchain to implement sharding at the protocol level
- Native token: ZIL, used for fees, staking, and governance
- Smart contract language: Scilla (original) and EVM-compatible (Zilliqa 2.0)
- Mainnet launch: 2019
- Current upgrade: Zilliqa 2.0 with Proof-of-Stake and modular x-shards
Introduction
Zilliqa (ZIL) is a high-performance Layer-1 blockchain built to solve the scalability problem that has long challenged decentralized applications. Its core idea is simple but powerful: instead of every node processing every transaction, the network splits into smaller groups — called shards — that work in parallel.
This design allows Zilliqa to increase throughput as the network grows, making it suitable for demanding use cases like DeFi, NFTs, gaming, and enterprise applications.
History & Background
Zilliqa was founded in 2017 by a team based in Singapore, with offices later established in London and Dubai. It launched an ERC-20 token on Ethereum initially, then migrated to its own mainnet in 2019, becoming the first public blockchain to use network sharding as a live scaling solution.
Over time, the ecosystem evolved. Recognizing new demands for cross-chain interoperability, EVM tooling, and institutional adoption, the team developed Zilliqa 2.0 — a major architectural upgrade transitioning the network to Proof-of-Stake and introducing modular, app-specific shard environments.
How Zilliqa Works
At its core, Zilliqa uses network sharding to divide nodes into smaller groups. Each shard independently processes a subset of transactions in parallel, so total throughput scales with the number of nodes. Testing has shown the network capable of over 2,800 transactions per second.
The original consensus model was a hybrid of Proof-of-Work (for node identity verification) and practical Byzantine Fault Tolerance (pBFT) for fast finality. Zilliqa 2.0 moves the network to a full Proof-of-Stake model with validators replacing miners.
Zilliqa also introduced Scilla, a purpose-built smart contract language with formal verification properties to reduce common contract vulnerabilities. Zilliqa 2.0 adds full EVM compatibility, enabling Ethereum developers to deploy existing smart contracts and tooling with minimal changes.
Tokenomics
ZIL is the native coin of the Zilliqa blockchain. It is used to pay transaction fees, reward validators and stakers, and participate in governance. The total supply is capped, and the Zilliqa 2.0 upgrade introduced a revised staking economy where yield is earned through capital commitment to validators rather than mining hardware.
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Circulating supply
| 20.05 billion ZIL |
|---|---|
| |
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Total supply
| 20.12 billion ZIL |
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Max supply
| 21.00 billion ZIL |
Ecosystem & Use Cases
Zilliqa supports a broad range of decentralized applications, including DeFi protocols, NFT marketplaces, and gaming platforms. The Zilliqa 2.0 architecture specifically targets institutional use cases through modular x-shards — customizable chain environments with configurable gas fees, privacy settings, and validator sets.
This positions Zilliqa as infrastructure for real-world asset (RWA) tokenization, compliance-ready finance, and enterprise-grade deployments requiring both performance and regulatory flexibility.
Team, Governance & Community
Zilliqa is developed by Zilliqa Research, the Singapore-based team behind the original whitepaper and ongoing protocol development. Governance is evolving alongside Zilliqa 2.0, with validators playing a central role in network security and decision-making. The community engages through forums, Reddit, Telegram, and official developer portals.
Advantages
- Sharding pioneer: One of the earliest blockchains to prove sharding works at scale in production.
- High throughput: Parallel transaction processing enables thousands of TPS.
- EVM compatibility: Zilliqa 2.0 allows seamless Ethereum dApp migration.
- Modular x-shards: App-specific environments for enterprise and institutional deployments.
- Formal smart contracts: Scilla provides mathematically verifiable contract logic.
Risks & Challenges
- Competitive landscape: Newer Layer-1s and Layer-2s have intensified competition for developer mindshare.
- Adoption hurdles: Scilla, while secure, differs from Solidity, limiting the existing developer pool.
- Upgrade execution risk: Transitioning to Zilliqa 2.0 introduces technical and community coordination challenges.
- Market position: Zilliqa remains a smaller-cap Layer-1 with ongoing pressure to grow its ecosystem.
Long-Term Vision
Zilliqa's roadmap centers on becoming modular, EVM-compatible infrastructure for the next wave of institutional blockchain adoption. With Zilliqa 2.0, the network aims to support real-world asset tokenization, compliant DeFi, and high-performance dApps in AI and gaming — positioning itself not just as a scalable chain, but as a flexible foundation for regulated on-chain finance.
Frequently Asked Questions
- What makes Zilliqa different from other Layer-1 blockchains?
Zilliqa was one of the first Layer-1 blockchains to implement sharding in production, allowing parallel transaction processing across multiple shard groups. This gives it a unique throughput advantage compared to traditional single-chain architectures.
- What is sharding in the context of Zilliqa?
Sharding splits the Zilliqa network into smaller groups of nodes called shards, each processing a portion of transactions independently. As more nodes join, more shards can be added, increasing overall network capacity.
- What is Scilla?
Scilla is Zilliqa's native smart contract programming language, designed with formal verification in mind to reduce common vulnerabilities. It allows developers to mathematically prove that contracts behave as intended.
- What is Zilliqa 2.0?
Zilliqa 2.0 is a major protocol upgrade that transitions the network from a hybrid Proof-of-Work model to Proof-of-Stake and introduces EVM compatibility. It also adds modular x-shards — customizable chain environments suited for institutional and enterprise use cases.
- What is ZIL used for?
ZIL is the native coin of the Zilliqa blockchain, used to pay transaction fees and reward validators. It can also be staked to earn yield and participate in network governance.
- Is Zilliqa compatible with Ethereum tools?
Yes. Zilliqa 2.0 introduced full EVM compatibility, meaning Ethereum smart contracts and developer tools can be deployed on Zilliqa with minimal modification. This lowers the barrier for developers already working in the Ethereum ecosystem.
- What are x-shards in Zilliqa 2.0?
X-shards are customizable, application-specific shard environments introduced in Zilliqa 2.0. Projects can configure their own gas fees, privacy settings, and validator sets, making x-shards suitable for regulated finance and enterprise deployments.
- When did Zilliqa launch its mainnet?
Zilliqa launched its mainnet in 2019, becoming the first public blockchain to use network sharding as a live production scaling solution. Before the mainnet, ZIL existed as an ERC-20 token on Ethereum.