We recently wrote about a great upcoming Telegram channel called Verified Crypto Traders, which we fancy hard. They have extensive knowledge and recently picked some real big gainers (Zilliqa). They asked us if we are willing to publish a recent analysis of a great project with much upside – and, hell yeah, we are happy to spread their knowledge to our readership. So, here you get it – a fully-featured, free ZILLIQA (ZIL) analysis.
The groups are constantly looking for the best investment opportunities in the crypto space. Fundamental research, constantly reading charts, and our strong network have helped us find the best crypto gems. Our early calls on EOS, VEN, ICX, WTC, and SUB made our community amazing profits in late 2017/early 2018. It looks like we have found another real gem, which is ready to SHINE! One of the biggest issues in the blockchain and cryptocurrency space is scalability. Only by solving the scalability issue will cryptocurrencies be ready for mainstream adoption. There are different on-chain and off-chain solutions, but none has solved the issue yet. Here comes Zilliqa (ZIL), a Singaporean-based company. Zilliqa is the first project that seems to have solved the scalability issue and is way ahead of its competition.
The Problem of Scalability
The scalability issue in the blockchain space is easy to explain: it simply deals with the issue of how many transactions per second (TPS) a blockchain can handle. The more TPS a blockchain can handle, the faster it is. In the end, it’s simply about SPEED. Speed is essential when it comes to the real-world use of blockchains. But what does the term “transaction“ mean in the blockchain technology? The answer is quite simple as well: any data that is sent through blockchain is a transaction.
As you can see, the problem is quite easy to understand, yet the solution is still technically difficult. Zilliqa is going to change that. To give you a bigger picture, let’s have a look at VISA, ETH and
BTC’s TPS:
Project Transactions per second
Bitcoin 7
Ethereum 20
VISA 4000-8000 (1500 daily average)
The Zilliqa Project
As you can see, BTC and ETH are very limited and far behind when it comes to speed and, hence, real-world usage. Imagine using BTC or ETH for money remittance! While VISA handles 1500 TPS on a daily basis, BTC and ETH are less than 20. In simple words, BTC and ETH are way too slow for mainstream use and adoption. Lightning Network will improve BTC´s scalability, however, it will still be far away from VISA´s level that can even scale up to 56.000 TPS if needed (for example on Christmas). If we come to think that Ethereum is a network on which dApps should be able to run, it gets even worse. Imagine running a network like Facebook on the Ethereum platform that must reach 175.000 TPS…. This clearly shows how far away Ethereum is from being ready for real-world use. Ethereum will probably get there, but it will take years of development. However, many projects work on solving the scalability issue – Dfinity, Rchain, and Aelf, to name just a few. The difference is that Zilliqa is the only project at the moment that already has a working solution to the scalability issue! That said, Zilliqa is years ahead of its competition.
Zilliqa: The Scalability Monster
Zilliqa uses a technology called “transaction sharding“ and has already successfully implemented it. One “shard“ represents one group of nodes. The separation in nodes brings the advantage of parallel transaction verification. Basically, one block in the Zilliqa network consists of a number of sub-blocks, which were created simultaneously by the shards. This linear scaling approach solves one of the major issues
of other blockchain networks, which become slower as the size of the network increases as more data has to travel to each node. Zilliqa’s unique sharding approach allows the network to become faster with more nodes added to the network. Therefore, Zilliqa is extremely minor friendly.
Zilliqa has already tested its sharding. During the testnet, Zilliqa reached a transaction rate per second of 2.488, while 3.600 nodes split into six shards were running. The relatively small ZIL testnet (3600 nodes ZIL vs 14964 ETH) reached 100x of the transaction rate of the far bigger Zilliqa Testnet 2488 Project Transactions per second Ethereum network. This clearly shows how much more advanced the Zilliqa blockchain is when it comes to scalability. In contrast to the Ethereum network, the transaction verification is done by the nodes instead of the miners. Every single node carries out a consensus algorithm called Ethash. If the algorithm is carried out once by the node, the node is recognized and integrated into the network because the node can basically run on every device mining rigs, which are very expensive, become obsolete.
It is also worth mentioning that other blockchain platforms also aim for high transaction speed but they have to give up too much of their core values of decentralization. While EOS and NEO follow a more centralized approach in favor of more network speed (in both networks, the control of the nodes is managed by their teams) or IOTA that lacks security, Zilliqa has managed to combine the elements of speed, decentralization, high security, low transaction fees, transaction privacy, and “miner-friendly” approach. This is unique and puts ZIL ahead of its competition. It is the first and, until now, the ONLY blockchain that gives decentralized applications the opportunity to use the blockchain in the real world. This is a massive step for the whole blockchain sector and a milestone for all crypto enthusiasts.
Who is the team behind the tech?
Zilliqa has a very strong team, which comes mainly from the programming and computer science scene. It is a very tech-orientated team whose main focus is primarily set on technology and only secondary on marketing. The team worked together on the project two years prior to the ICO and was funded by the University of Singapore. The CEO, Dr Xinshu Dong, is an NUS School of Computing PhD alumnus and Senior Research Fellow and has many years of experience in blockchain scalability. The chief scientific advisor, Prateek Saxena Lias, is a university professor known as a blockchain expert in the industry. Another big name is Loi Luu, the Co-founder of Kyber Network, another successful startup in the crypto space, who acts as an official advisor. Yaoqi Jia is the head of technology and an expert in a cryptographic mechanism whose skills are acknowledged by Apple and Google.
If you want more details on the team, check: https://www.Zilliqa.com/team.html
Can Zilliqa dethrone Ethereum?
Probably not. At least, not anytime soon. Ethereum has the first-mover advantage; we all know it is always a big factor in new technologies. Don’t forget that the whole economy is based on its ERC20 protocol. The fact that Solidity, Ethereum’s main coding language, has become very popular among blockchain developers indicates its future importance. Ethereum has a long history in the crypto space, a massive ecosystem, and a great pool of top developers. However, Zilliqa does not need to dethrone Ethereum to be relevant and bring investors great returns.
Why has ZIL still a relatively low market cap compared to similar projects?
At first, competitions like EOS, CARDANO, or LISK came out months or years earlier than Zilliqa. They are already well-known and well-established projects in the blockchain space. ZIL is a relatively young project that hit the recent bear market exchanges. There were not enough investors and interest in the crypto space in general, so ZIL has not moved a lot yet, which is good news for all of you. ZIL is still a steal! Another reason is a lack of marketing and a strong focus on technology. If you have followed any groups, you should know that they love this kind of project, focusing on the tech first. This shows us how dedicated the team is, and the project is not a money grab like many other projects in the crypto space. But we all know that hype is an important factor in the space, and Zilliqa needs more of that to raise awareness for the project.
Is Zilliqa a great investment?
First, we are no financial advisors and we recommend you to do your own research. However, we are currently holding a lot of ZIL. We are very well connected in the crypto space, and we know that the big fish, called whales, also favor ZIL. A few days ago, the trading volume went up exceptionally high, so we knew something was happening, and it was time to jump in immediately. Our subscribers entered at 0.06 USD. But no worries, you didn’t miss the boat. ZIL is a long-term hold and still has massive upward potential. Compared to other blockchain platforms, ZIL seems to be superior in terms of technology. Many of its competitors are far away from what ZIL has already achieved, some are even still WP-projects and need a lot of time for development, e.g Rchain (no product yet), ADA (no product yet) or Lisk that doesn’t even have a solution to the scalability issue yet. Zilliqa is almost ready for real-world use. Estimating only the pure potential, ZIL should be able to reach at least the level of similar blockchain projects.
So, lets take a look at the market cap of those projects:
Comparing Zilliqa’s market cap of 763.488.410 USD with similar projects, you should get a good idea of where ZIL belongs. In our opinion, ZIL is a top 10 project, maybe even a top 5 project, that has the potential to overtake some of the other projects listed in terms of market cap even this year. It solves blockchain’s greatest issue earlier than every other project. This is big. This is a great milestone for the whole cryptocurrency space. Q3 2018 should be especially great for Zilliqa as mainnet will go live, and we may finally have a scaleable blockchain in the crypto space, which will help achieve mainstream adoption.
At this point, however, ZIL is a long-term hold. You haven´t missed the boat yet.
Disclaimer: This is not investment advice! This article represents our own opinion. Please do your own due diligence before investing in any cryptocurrency. Crypto is volatile; only invest what you can afford to lose.
