foxperiodical

Price forecast for Zilliqa: ZIL to pullback after parabolic run

Ziliqa Price Prediction

The biggest cryptocurrency of the twenty-first century, Zilliqa, has fallen from its all-time high of $1.92 to about $0.27 at the time of this writing. The price is still incredibly high for what it is—a second generation blockchain—but it’s nowhere near the laughable valuation that it once was. This price drop has been speculative in nature, with many traders looking to buy low and sell high on a parabolic run-up that peaked at over $2 billion market cap on January 9th as news of institutional adoption surfaced as well as announcements about targeted jurisdictions to launch exchanges like Malta and Switzerland sparked excitement across the crypto community.

While the price of ZIL has taken a pounding, it still has considerable room to grow before it reaches its previous all-time high. With the current market cap sitting at roughly $800 million, here’s how Zilliqa (ZIL) compares to other coins with real use cases that have been around for much longer: Zilliqa is a second generation blockchain and is designed to scale better than existing ones due to its sharding protocol and consensus mechanism. As an open-source platform, anyone can download Zilliqa’s internal programming language known as Scilla to develop decentralized applications (dApps) on top of it.

The first sharding protocol was created in 2009 for Ripple, a cryptocurrency focused on banking. It is also the platform that KuCoin operates on.

Zilliqa (ZIL) is the world’s most used blockchain for machine learning and smart contract functionality. The first use case model for Zilliqa was to build a decentralized exchange (DEX) with a smart contract that would automate the buying and selling of specific cryptocurrencies between two parties without having to go through an exchange that would charge fees as high as 2% or more.

Why is ZIL soaring?

The price of ZIL is pulled down by the bearish trend in the broader cryptocurrency market, similar to Binance Coin (BNB) and IOTA which fell by over 80% from their all-time highs as well. The general bearish sentiment for Zilliqa mirrors what’s happening on the broader market.

Zilliqa’s “Scilla” language differs from other smart contract languages in that it allows programmers to write smart contracts in type-safe, statically checked and verified Python code. This is not a feature specific to ZIL’s blockchain but instead to the major platforms on which ZIL is built. The advantage of using Scilla is that it allows for more interoperability between different blockchains and more security. Because it also supports sharding, it provides for higher levels of scalability than Ethereum

Other than being able to use Scilla, there are two other significant differences between Zilliqa(ZIL) and other cryptocurrencies:

The QASH token was designed to be used on the Zilliqa platform. QASH is a native utility token that can be used as a unit of account on the network and incentivizes cooperation, participation in network maintenance and participation in revenue generation. The value of QASH will grow with the size of the ZIL ecosystem.

A further important consideration in terms of comparison is that Zilliqa’s blockchain provides not only a protocol to execute smart contracts, but it also provides consensus enforcement, allowing for censorship-resistant applications to be built on top of its network. All other leading blockchains have similar protocols for smart contract execution but cannot offer this level of security or censorship resistance from their networks.

So why is ZIL on the rise?

Zilliqa is a second generation blockchain that will solve issues of scalability with existing protocols like Bitcoin and Ethereum. As mentioned, its sharding protocol enables incredibly fast transaction speeds that could potentially be thousands of times faster than existing protocols. In addition, Zilliqa’s unique consensus mechanism enables better security and participation of mining nodes in the network.

As the largest market cap for this next-generation blockchain protocol, ZIL has yet to prove itself as a viable solution to the scalability problem facing current blockchains. This scaling solution could take some time before being put into action.

Tag Post :
Share This :