Next-gen blockchain platform, Zilliqa 2.0, unveiled for institutional usage.
Zilliqa, a leading Layer 1 blockchain platform, has undergone a significant transformation, transitioning from a high-performance chain into a modular, institution-ready blockchain with the launch of Zilliqa 2.0.
This foundational redesign, not a simple iteration, introduces several key features and benefits that enhance scalability, energy efficiency, developer compatibility, and institutional adoption.
Native Sharding with Modular X-Shards
The network splits into parallel processing chains (shards) allowing simultaneous transaction processing, significantly increasing throughput. Modular X-Shards enable projects to customize gas fees, privacy, and validator sets tailored to specific use cases, such as private enterprise chains.
Proof-of-Stake Consensus
Zilliqa 2.0 replaces energy-intensive mining with a Proof-of-Stake (PoS) system. This reduces energy consumption by about 99% compared to previous mining and achieves fast transaction finality at around 5 seconds.
Full Ethereum Virtual Machine (EVM) Compatibility
The upgrade provides full EVM compatibility, allowing Ethereum developers to deploy smart contracts on Zilliqa without code modifications. It supports familiar tools like Hardhat and MetaMask, facilitating easier cross-chain development and adoption.
Compliance and Institutional Features
Zilliqa 2.0 targets regulated markets by integrating KYC/AML compliance directly into smart contracts, providing auditable contracts and verifiable identities. It supports Real-World Asset (RWA) tokenization via modular shards, enabling institutions to tokenize assets such as real estate or securities with customized rules.
Enhanced User Experience with Smart Accounts
The protocol supports ERC-4337-compatible smart accounts that include social logins, two-factor authentication, and gasless transactions, all designed to simplify user onboarding and improve security.
These features position Zilliqa 2.0 as a high-throughput, scalable blockchain that bridges Ethereum-compatible decentralized applications with institutional-grade compliance and customization, enhancing its role in regulated DeFi and tokenized asset markets.
Network Robustness and Readiness
The extensive Aventurine testing phase, which lasted six months and involved 21 external validators, validated Zilliqa 2.0's network robustness and readiness for real-world applications. During this phase, the network produced over 7.5 million blocks and executed 15 client upgrades.
Strategic Integrations and Partnerships
Strategic integrations, such as partnerships with LTIN and deBridge, are underway to enhance interoperability and onboard regulated financial products. deBridge introduces native USDC to the Zilliqa network as part of these strategic integrations.
With these strategic integrations and the adoption of the upgraded protocol, Zilliqa is positioning itself as a focal point for institutional blockchain use cases and next-generation Web3 development.
The new protocol architecture is modular, designed for continuous upgrades, increased throughput, and advanced functionalities. The staking model in Zilliqa 2.0 offers improved performance, simplified validator onboarding, and incentives for early migration from Zilliqa 1.0. It is structured to reward early adopters while ensuring sustainable growth as liquidity and users shift from Zilliqa 1.0 to the new ecosystem.
Zilliqa 2.0 introduces features aligned with modern-day regulatory, technological, and usability expectations. The new platform offers composability, developer-focused infrastructure, and enterprise-grade modularity. With over 50 million transactions already processed and one of the industry's most advanced sharding implementations, Zilliqa 2.0 is poised to lead the way in the next generation of blockchain technology.
[1] Source: Zilliqa Official Blog - Announcing Zilliqa 2.0: The Next Generation of High-Performance Blockchain
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