?? New blockchain architecture
?? Transaction speed increased significantly
Ethereum is not a pure cryptocurrency, but a decentralized platform based on blockchain technology. However, both Ethereum and the Bitcoin blockchain have scalability issues, meaning they are too slow to process multiple transactions. Because they validate the validity of transactions using a complex consensus procedure, there are considerable latencies when processing transactions between nodes on the network. The consequence is not only poor transaction performance, but also high transaction costs.
The speed with which consensus can be reached on a blockchain depends directly on the size of the network, that is, the number of nodes, because the more participants seek a consensus on the state of the shared blockchain, the longer they have to wait. with each other until they have agreed on a new common protocol state.
Previous approaches to increasing the number of transactions per second were to keep certain information off-chain or increase the block size. But such solutions are not sustainable if the networks continue to grow.
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Zilliqa wants to solve the scalability problem
Zilliqa’s blockchain platform, on the other hand, aims to reduce the time it takes to complete a transaction even if the network continues to grow. To permanently solve the scale problem, the developers have completely redesigned the blockchain and rely on a technology called sharding. With this architecture, the nodes of the network are combined into groups of 600 nodes each. These so-called chunks then process part of the transactions. And the more chunks there are on the network, the more the workload can be divided.
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Verifying transactions is much faster because, on the one hand, a consensus can be found much easier when there are fewer nodes involved. On the other hand, much more work is done without additional time expenditure if different shards are working on different projects at the same time. Also, Zilliqa’s fees are comparatively low.
The ZIL token
As a reward for miners and to pay transaction fees on the Zilliqa network, a separate crypto currency was also developed with the ZIL token.
Editorial team of Finanzen.net
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