Zilliqa is a blockchain platform that uses the sharding technique scalability to allow for a high throughput of transactions. Zilliqa was developed to provide high-throughput solutions to the scalability issues of major blockchain platforms. The primary use case of Zilliqa is for high-throughput decentralized applications, such as payments and digital advertising.
ZIL utilizes a unique consensus mechanism known as “Shard-based Byzantine Fault Tolerance,” which allows the network to be divided into smaller “Shards” that process transactions in parallel. It allows for a linear increase in the number of transactions that can be processed as the number of nodes in the network increases, making Zilliqa highly scalable.
Zilliqa also uses a novel programming language called Scilla, specifically designed for smart contracts with a focus on security. Additionally, the platform enables private transactions by using a technique called “View-sharing,” which makes it possible to restrict the number of nodes that can see the transactions.
ZIL has already been used in various projects and dApps and is actively trying to expand its use case in gaming, finance, decentralized exchanges, and the NFT space. The platform’s native token, ZIL, is used to pay for transactions on the network and also plays a role in securing the network via staking.
While the platform is still in its early stages of development and has a limited number of dApps, the network will continue to grow with new applications using this platform.
With a massive buying trend developing on Zilliqa, it seems new applications developed on its platform are feeding the ZIL tokens creating a buying scenario suited for short-term spikes.
ZIL token would be remembered for its wild buying spree if not for its fundamentals that overcome challenges even market leaders failed to address. With lower transaction costs, ZIL can support other applications’ expansion. As the token value has overcome the 100 EMA curve, a positive reaction is widely expected, taking the value to $0.03 from the current value of $0.245. Read our Zilliqa price predictions to know if it will cross $0.03 or not!
A breakout was witnessed contrary to the breakdown pattern of the last two consolidation zones. The resulting gain has been created with very high transaction volumes, which gives a huge thumbs up to the token outlook in the short term.
In the long run, ZIL is still reading on a huge discount from its peak value. A massive move is the only way to reach its previous peak value. RSI has already reached overbought zones, and a short-term selling could be a perfect opportunity to re-enter the token if not already entered.
The high wick created on January 9 remains untouched today, which could be a sign of trend reversal. Hence, trade ahead with caution. Buyers should diversify or invest a lesser amount in ZIL as it made a sudden spike in 2022, which failed within the same month. One should use money management efficiently to avoid getting trapped by the temptation to enter this token.