Zilliqa (ZIL) has popped in a more or less down day in the cryptosphere. One driver for the price action on ZIL is a rumor that the platform has been contacted by Facebook. The social media company has the option of building on the already available platforms such as Ethereum (ETH), Tron (TRX), ZIL or EOS.
Of course, this is all speculation, but here is the breakdown of the evidence:
- Facebook and Zilliqa having a common partner in the global marketing and media company of Mindshare
- Evan Cheng being both an adviser at Zilliqa and head of blockchain at Facebook
- ZIL getting listed on Coinbase, serving as a precedent of something greater in the blockchain world
- David Marcus excusing himself from the board at Coinbase to avoid conflict of interest while working at Facebook
Another reason for the increased price could be the anticipation of the mainnet launch at the end of this month. In a recent update on the project, the team have mentioned that they are now wrapping up the loose ends found during the internal testing phase by the community. For example, they have found a way of speeding up the execution of smart contracts by up to 2x. They have also announced that developers will have a plethora of choices to code with as they increase the range of their SDKs
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Zilliqa is the first public blockchain designed to implement sharding, allowing for linear scaling as the blockchain grows in size.
To date, scalability has been an issue for existing blockchain technologies.
Right now, Bitcoin can’t process all the demand for its network, and transaction fees have risen accordingly. The same goes for Ethereum where limited throughput means smart contracts can become gas-intensive. For instance, the popularity of Crypto Kitties significantly slowed Ethereum, showing the limits of the network.
— Zilliqa (No airdrops or ETH giveaways) (@zilliqa) January 15, 2019
Zilliqa fundamentally changes how a blockchain reaches consensus. Their sharding solution scales with the size of the network. Theoretically, there’s no limit to the number of transactions Zilliqa could process per second. Practically, however, depending on the number of nodes on the network, Zilliqa could process tens or hundreds of thousands of transactions per second.
Here is an excerpt from an interview with the coin’s CEO pair:
“Security is a key priority for us, and it drives a great deal of our decision making when it comes to our consensus protocol and the creation of our programming language, Scilla. It was also a key factor that we took into account when we looked at scaling solutions.”
“Therefore, while there are many proposed solutions for scaling blockchains, we’ve found that sharding is a viable on-chain solution that allows us to preserve decentralization, scalability, and security.”