Zilliqa (ZIL) is a young coin – it only began trading last month, after the project kicked off six months earlier in Singapore. You may have noticed this digital currency on the crypto markets today because it’s been climbing the price rankings recently.
In the past 24 hours, ZIL has added 15% to its value – and it has reached record volumes on top of that.
So, why are investors so into this coin right now?
Why is Zilliqa (ZIL) Rising?
The boost in this digital currency’s price directly coincides with an event that the majority of successful cryptocurrencies will go through: getting added to Binance.
Dear all community members, congratulations to all of us on Binance announcing to list us!This is a great testimony of achieving success together as a community. We would like to thank everyone again for your support to #Zilliqa and we will do great things together going forward!
— Zilliqa (@zilliqa) March 5, 2018
Yes, Zilliqa is now trading on one of the most widely-used cryptocurrency exchanges on the planet. That would be a boon to any coin’s price, but at least this one has the technology to back it up – and investors seem to be pretty excited about this network that’s in development.
What is Zilliqa, anyway?
So, what is this coin all about? Unfortunately, there isn’t any cool, futuristic or wow-I-never-knew-we-needed-that type of platform to discuss here. This project is sort of bland, to be honest, but the technology shows promise and has proven to be able to successfully tackle one of the biggest problems in the blockchain sector: scalability.
With top-dog coins like Ethereum (ETH) and Bitcoin (BTC) only managing to process a certain (low) amount of transactions per second, the ability of these networks to be able to handle future applications will dwindle. It will soon be all about which blockchain platforms can handle the most transactions at a time.
Rather than using the traditional system of nodes verifying transactions, Zilliqa uses a method called “sharding” – which (as you probably guessed) breaks the networks into shards so that they can process in parallel with each other. ZIL is able to do this without compromising security, which is one of the most appealing parts of this system.
— Alexa Fechete (@buticut) March 5, 2018
You can see a pretty easy-to-digest graphical representation that they re-tweeted from a fan above.
Just one thing…
The only problem with this whole proposition is that there are dozens (if not several dozens) of cryptocurrency projects already in the works right now that are trying to deal with scalability problems presented by Ethereum and Bitcoin.
Especially considering the fact that, if you check out their roadmap, their main (non-test net) launch isn’t happening until the third quarter. There are going to be a ton of crypto launches in between now and then.
Will it be too late for Zilliqa (ZIL)?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.