A beginner’s guide to buying, selling and trading the ZIL token in New Zealand.
The Zilliqa project is an initiative which aims to resolve issues surrounding blockchain scalability. Zillings, denoted by the ticker symbol ZIL, are the tokens of the Zilliqa platform. On the Zilliqa platform, ZIL tokens are used to pay for transactions or running smart contracts.
To find out more about the Zilliqa platform and how to buy, sell and store ZIL, read on. Our introductory guide will also cover real world applications for ZIL and things to consider when buying the token.
Where to buy ZIL
You can buy ZIL at the following exchanges:
A step-by-step guide to buying ZIL
The above exchanges allow users to purchase ZIL. As the majority of trading volume will be found at Huobi.pro, let’s use Huobi.pro as an example for this guide. Follow our step-by-step guide below to find out what you need to do.
Step 1. Create an account at your exchange of choice
Using Huobi.pro as an example, you will visit the Huobi.pro homepage and open an account. By default, the website will be in Chinese, so click on the highlighted button at the very top right hand side of the screen and change the language to English. Next, click on “Sign up”. You will need to enter your nationality, a strong password and an email address – which you will need to confirm by entering the code that is sent to you. Once your account is created, log in.
Step 2. Deposit funds into your account
As of April 2018, Huobi.pro does not offer any fiat currency deposit facilities. You will need to fund your account with cryptocurrency that has been listed in a pair with ZIL, such as BTC or ETH.
If you do not hold either of these coins, or you are unsure how to obtain them, you can refer to the following guides:
To begin depositing your cryptocurrency in your Huobi.pro account’s wallet, hover your mouse over “Balances” and click on “Deposit & Withdraw”. Find the cryptocurrency that you will use to fund your account (such as BTC or ETH). Next, click on “Deposit”. This will display your unique Huobi.pro wallet address. Copy it to your clipboard.
Now head over to your account on the exchange where you hold BTC or ETH. You will typically be able to send funds through finding a “Withdraw” or “Send” section of the website. Once you have opted to transfer your funds, you should be prompted to enter the wallet address where funds should be received. Paste in your Huobi.pro address and send your chosen amount of funds.
Ensure your wallet address is correctly entered!
- Note that every wallet address is a unique code. As transactions are typically irreversible, always check that your receiving wallet address is entered accurately.
Step 3. Buying ZIL
Now that your Huobi.pro account is funded, click on the “Exchange” button on the top menu. On the left hand sidebar, you will see a search box next to “Markets”. Search for “ZIL” and then depending on your deposited currency, select BTC or ETH.
To access the trading screen, click on the row that displays ZIL. Scroll down below the chart and you will see two trading boxes. Firstly, ensure that the “Market Order” button is selected as this will execute your trade at the current market price. Next, enter the amount of ZIL tokens you want to buy, ensuring that you are using the box above the green “Buy” button.
Finally, click on “Buy ZIL”, and your trade should fill immediately. As a final check, go back to your “Deposit & Withdraw” screen to see your updated balance.
How to sell ZIL
If you want to sell your ZIL tokens, the process is similar to buying in the above example. However, if you are using Huobi.pro, please ensure that you use the “Sell ZIL” trading box instead, which is above the red button.
Which wallets can I use to hold ZIL?
ZIL tokens were issued on top of the Ethereum blockchain, which means that you can store them in any wallet that supports the ERC20 format. Most device types will be covered, including Windows, Mac and Linux, as well as iOS and Android.
How does the Zilliqa platform and ZIL work?
Created in June 2017 by a team of academics, the Zilliqa objective was to design a blockchain that could resolve issues surrounding blockchain scalability. When the cryptocurrency revolution experienced exponential growth in 2017, it became apparent that the first and second generation blockchain protocols of bitcoin (BTC) and Ethereum (ETH) had issues with scalability. As transactional demand has increased, blockchain validation speed has become slower. Hence, as more and more users accessed the system, the speed and efficiency of each transaction decreased drastically.
In response to this, the Zilliqa platform was built to handle significant throughput, or data processing, without compromising on network efficiency. The team behind Zilliqa claims to have resolved this issue through implementing a model known as sharding.
Key features of the Zilliqa platform
- Sharding. Sharding is the theory that as more and more nodes engage with the network, the amount of transactions per second that the blockchain can handle increases. Nodes simply refer to computers communicating with one another in a network. In a recent test, the Zilliqa model was able to perform 1,389 transactions a second. In comparison, it is widely accepted that bitcoin has a maximum capacity to validate 7 transactions per second.
- Hybrid Consensus Model. The initial validation method used to verify a movement of data is the proof-of-work (PoW) mechanism. Once a node has been verified, it is assigned to a shard. As an increased layer of protection against malpractice, the Zilliqa blockchain implements the Byzantine Fault Tolerance (BFT) consensus model. In a nutshell, this means that when a new transaction is sent to the network, it cannot be tampered with. Similar models can be found in aerospace engines and nuclear plants.
- Decentralised Applications (dapps) and smart contracts. The Zilliqa developers have created a feature that can facilitate smart contract utilisation. Smart contracts are contracts written in computer code instead of traditional legal language, enabling the contract to be executed automatically under predefined conditions. This means that two parties can agree to complex terms without needing to involve third parties. As identified on the Ethereum blockchain, smart contracts are data intensive. However, the sharding model installed within Zilliqa is designed to facilitate transaction speeds that are still within the thousands per second.
- Zillings (ZIL). The Zilliqa platform’s intrinsic tokens are called Zillings and have the ticker symbol ZIL. ZILs enable users to have platform usage rights where they can run smart contracts, receive mining rewards or pay for transaction processing.
Real world applications for ZIL
In late 2017, Zilliqa raised the equivalent of US$12 million in exchange for its newly created ZIL token. The fundamental purpose of ZIL is to fuel the Zilliqa economy. Notably, ZIL is the currency for mining rewards, transaction fees and smart contract execution. Outside of these parameters, the ZIL token acts just like any other cryptocurrency. Users can send, hold and receive funds, wallet-to-wallet, and its value is determined by market demand.
What to consider if buying ZIL
All cryptocurrencies are highly speculative. It’s common practice for developers to make bold claims about their project’s potential, but it’s important to bear in mind that there’s no guarantee these goals will ever be realised. Along with this, here are more considerations you could factor into your decision to buy ZIL:
- Supply. The total supply of ZIL will be capped at 21 billion coins.
- Roadmap Objectives. The Zilliqa team will be releasing two TestNet launches in the first half of 2018, with the aim of launching the mainnet platform in Q3 2018.
- Sharding Claims. If the technological innovation of sharding is able to deal with the issues of scalability, the Zilliqa client will be head and shoulders above first and second generation blockchains. However, it is important to remember that established blockchain Ethereum has been attempting to increase its scalability issues for a good while now, and there are still no signs as to when this will be achieved. Although Zilliqa has run various tests – each displaying good results – there is no guarantee that its protocol will able to handle the same amount of transactions in real terms.
- Whitepaper. To learn more about the Zilliqa platform’s aims the ZIL token, you can check out the Zilliqa technical whitepaper.
- Notable Partnership. The Zilliqa team recently announced that it had partnered with Mindshare, a global media and marketing agency.
Once you have considered the above points and conducted independent research on ZIL, you should be able to make an informed decision on whether to buy ZIL.