Zilliqa 2.0

6 massive changes revealed in the Zilliqa 2.0 whitepaper

Discover the biggest changes coming with the rollout of Zilliqa 2.0.

Jamie McKane

Jun 14, 2024 • 5 min read

The whitepaper and roadmap for Zilliqa 2.0 have been officially unveiled, outlining the evolution of the network towards a fast, efficient, and easy-to-use blockchain that adapts to its users’ needs.

An extensive evolution of the Zilliqa protocol, Zilliqa 2.0 brings a number of landmark changes that cement its position as a technical heavyweight in the Web3 space.

Combining best practices and interoperable standards with revolutionary new approaches to scaling and consensus, Zilliqa 2.0 sits at the cutting edge of blockchain development while also focusing squarely on accessibility and making using Web3 as straightforward as the traditional Internet.

Whether you’ve already read through the Zilliqa 2.0 whitepaper and want to learn more, or you simply want an overview of the important changes coming in the new network, there are six headline features you need to know about.

Let’s take a look at the six powerful features coming in Zilliqa 2.0:

X-Shards: Shape the blockchain to your needs

One of the unique features of Zilliqa 2.0 is its exciting new sharding architecture. Building on Zilliqa’s pioneering sharding technology, Zilliqa 2.0 features a game-changing evolution of this innovative approach to blockchain scaling: X-shards.

Shards are different but interconnected instances of the same blockchain protocol that improve scalability by processing transactions in parallel, and X-shards expand this approach to offer a far more customisable and interoperable experience.

Put simply, X-shards are blockchains built on top of Zilliqa 2.0 that can be customised according to the needs of the apps and users operating on it. They can be set up to use stablecoins as their native token, offer cheaper transactions, deliver user privacy through encrypted transactions, or even use an alternative consensus model.

X-shards allow developers to shape the blockchain to their needs, and give users the ability to use apps across different X-shards and the Zilliqa 2.0 mainnet seamlessly, with the ability to communicate and transact across shards built into the protocol.

Proof-of-Stake Consensus: Fast, low-cost, and energy-efficient

With the migration to Zilliqa 2.0 comes a shift to a faster, more efficient consensus mechanism that replaces the previous Proof-of-Work model with Proof-of-Stake.

Zilliqa 2.0 will feature a consensus mechanism where validators use tokens instead of computing power to secure the network, staking ZIL to justify the validity of transactions. Not only is this a far faster and less expensive way to process transactions, it also saves on the unnecessarily high energy consumption incurred by Proof-of-Work consensus.

The shift to Proof-of-Stake with Zilliqa 2.0 will also bring a massive performance boost, delivering up to 30-times faster block times and 10-times faster finality compared with Zilliqa 1.0’s consensus mechanism.

Zilliqa 2.0’s consensus model will allow everyone to play a role in securing the network, with all validators and delegators being rewarded according to the amount of ZIL they stake.

Learn more about the ultra-fast, energy-efficient consensus used in Zilliqa 2.0.

Cross-chain Communication: Plugged into other networks

Interoperability and cross-chain communication is a core feature of Zilliqa 2.0, with the groundwork for this strategy being laid in the recent introduction of native EVM compatibility to the Zilliqa 1.0 network.

EVM (Ethereum Virtual Machine) is the software platform used to build decentralised applications on Ethereum and other major protocols, including Zilliqa. EVM compatibility remains a key focus with Zilliqa 2.0, with the protocol now designed for simple and easy transactions across compatible blockchains.

The native ZIL token on Zilliqa 2.0 can be traded as a fungible token across other networks and EVM applications, unlocking access to the global multi-chain dApp ecosystem. This is further enhanced by the ability to easily conduct atomic swaps and deploy cross-chain bridges using the new Universal Cross-Chain Broker deployed on Zilliqa 2.0.

This built-in bridge infrastructure gives you the ability to easily bridge tokens and applications built on Zilliqa 2.0 to other EVM networks, marking a leap forward for the interoperability and accessibility of the blockchain.

Smart Accounts: Making Web3 as easy as Web2

While it competes with the most technically advanced protocols in the Web3 space, Zilliqa 2.0 is designed with ease-of-use first in mind. The network is built to support a number of powerful capabilities that make it easier for users and developers to interact and build on the blockchain.

Zilliqa 2.0 will feature smart accounts, blockchain accounts with built-in support for advanced features that can unlock everything from powerful new transaction types or significantly improved user experiences.

Importantly, these smart accounts can remove the friction and complexity that is now synonymous with Web3. With smart accounts, users can sign in with their social media credentials instead of a private key. They can pay gas fees using fungible assets without having to purchase native tokens, or they can prevent accidental transfers to the wrong addresses.

Smart accounts are implemented on Zilliqa 2.0 via native account abstraction that supports the ERC-4337 standard, and they are backwards-compatible, meaning Zilliqa 1.0 accounts can be seamlessly upgraded with this extended functionality.

Light Clients: Secure, decentralised ways to use Zilliqa

Another core feature of the Zilliqa 2.0 network is built-in support for light clients, lightweight nodes that can trustlessly interact with the blockchain without needing to store the entire history of transactions.

Introducing light clients with Zilliqa 2.0 unlocks the opportunity to create a more decentralised network, where private keys and wallets can be truly owned by their users and non-custodial applications can be efficiently deployed on the network.

Unlike full Zilliqa 2.0 nodes which must store the full digital ledger, light clients store only a chain of block headers which they verify independently. This means they can run on lightweight hardware without the need to offload custody to centralised parties.

Light clients allow you to manage assets or interact with multi-chain applications directly from your smartphone, without ever handing your keys to anyone.

Tokenomics: Sustainable economy with attractive rewards

Finally, Zilliqa 2.0 comes with a major overhaul to the network’s token economy, with changes to both its consensus mechanism and rewards distribution.

The tokenomics of Zilliqa 2.0 are designed to deliver a sustainable future for the ZIL token while also offering attractive rewards for the validators that help secure the network.

To ensure the long-term health of its token economy, Zilliqa 2.0 will reduce inflation through an automatic balancing of the amount of ZIL awarded to validators and the amount burned in transaction processing.Zilliqa 2.0’s tokenomics are built to be future-proof and sustainable while ensuring that validators enjoy attractive incentives and are rewarded for their role.

This approach, paired with the existing utility of gZIL in network governance and the groundbreaking ability to create additional token economies through customisable x-shards, places Zilliqa 2.0 among the most attractive networks for staking.

Learn more about Zilliqa 2.0

To find out more about the upcoming Zilliqa 2.0 network overhaul, visit the roadmap website or read the full whitepaper.

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