Following the upgrade of the Zilliqa network to v9.3.0 on January 3, 2024, the ZilBridge platform experienced what would become an extended disruption, leaving several transactions unconfirmed and users unable to make use of the platform.

This issue was resolved on March 27, 2024, when full functionality was restored to the platform.

ZilBridge is an Ethereum-Zilliqa Bridge powered by Carbon and Poly Network, and which enables the easy bridging of ZRC-2 fungible tokens across both Zilliqa and Ethereum. 

The Zilliqa technical team has conducted a root cause analysis of this disruption which provides a detailed breakdown of the issue and how it was resolved.

The disruption to ZilBridge, labelled as PIR-219, was caused in principle by the ZilBridge relay infrastructure not being shut down when the v9.3.0 network upgrade was implemented, causing it to relay incorrect block headers through the bridge infrastructure.

Factors which contributed to the delays in resolving this issue include the manner in which Zilliqa network upgrades are rolled out, the characteristics of how PolyNetwork validates transaction blocks, the discovery of bugs in the relayer program, and the time required to build a new genesis block and sync historical transactions with PolyNetwork.

As of March 27, these obstacles were overcome and full functionality was restored to the platform. ZilBridge is now back online and all previously stuck transactions have been synchronised and confirmed.

Root Cause Analysis - ZilBridge Disruption

ZilBridge (in part) uses a relayer program to relay suitable transactions and block headers to PolyNetwork, which then handles trans-shipment of the requests to Carbon and then on to other chains for delivery.

When a mainnet upgrade is implemented on the Zilliqa network, the following occurs:

The old network is made inaccessible

A new network is created from the persistence of the old network.

The new network replaces the old.

The new network is made accessible.

The Zilliqa team notifies partners ahead of a scheduled network upgrade so they are able to pause their infrastructure while the old network is made inaccessible. This imperfect process will be improved and made more dynamic and flexible with the rollout of Zilliqa 2.0.

In the case of the Zilliqa v9.3.0 upgrade, ZilBridge infrastructure was not paused during this process, and it continued to accrue headers from the empty blocks now being produced by the old network and it relayed these to PolyNetwork.

This meant that as the network came back up with v9.3.0, PolyNetwork found itself with a forked DS committee membership and it refused to sync with the new network.

PolyNetwork checks if a transaction block is correctly signed by reconstructing the DS (Directory Service) committee from the DS block headers reported by the Zilliqa blockchain. Only the latest DS committee is stored by PolyNetwork, and it is impossible to calculate previous DS committee members for previous DS blocks.

This meant that we needed to regenerate the genesis block for PolyNetwork - a time-intensive process which we would need to start from a time earlier than the current DS block.

As it is not possible to calculate DS committee memberships for previous blocks, the Zilliqa team created a tool that took saved persistence and worked forwards to reconstruct a genesis block at any point in the chain. This was then used to generate and sign a block at a block height just after the network upgrade.

Several genesis syncs had to be completed to account for the change in guard nodes between network versions, and bugs were then discovered in the relayer program that resulted in transaction blocks not being synced to PolyNetwork.

These bugs were fixed and we then encountered an issue stemming from the fact that PolyNetwork is unable to store the DS committee membership for a DS block that it has already stored a hash of. 

This caused the relayer to stop working and necessitated the creation of a genesis block between the last DS block PolyNetwork had seen and the first DS block with an outstanding bridge transaction.

The relayer was optimised to accelerate this synchronisation which, once complete, eventually resulted in PolyNetwork aligning with the Zilliqa network and functionality to ZilBridge being fully restored on March 27, 2024.

The Zilliqa infrastructure team has released version 3.8.0 of the Scilla plugin for Hardhat, the popular development environment for building EVM applications.

Hardhat is a development environment for smart contracts and decentralised applications (dApps) that makes it easy for developers to create, edit, compile, debug, and deploy smart contracts on EVM-compatible networks.

EVM, or Ethereum Virtual Machine, is a software platform used to build applications on Ethereum and other protocols that have implemented EVM compatibility, including Zilliqa.

The Scilla plugin for Hardhat allows developers to test, build, and deploy smart contracts written in Scilla on the Zilliqa network.

The latest version of the plugin includes a number of general fixes and several new features, which include major improvements to contract deployment.

Version 3.8.0 of the Scilla plugin for Hardhat adds customisable deployment options, giving developers greater control over smart contract deployment by allowing them to override preset deployment parameters such as the gas price and gas limit.

A new deployment builder has also been added to the plugin, which delivers cleaner and more readable smart contract deployment code.

Other new features include the ability to connect to and interact with Scilla contracts that are already deployed on the network, streamlining the development process for applications that interact with existing smart contracts.

The latest version of the Scilla plugin for Hardhat also includes a number of general improvements, including an update to node modules to retain compatibility and security, a migration from ESlint to TSLint in line with industry trends, and the introduction of support for Algebraic Data Type (ADT) parameters for contract constructors.

To learn more about how to use the new features introduced in version 3.8.0 of the Scilla plugin for Hardhat, view the ReadMe on GitHub.

Documentation and package information for version 3.8.0 of the plugin is also available on the npm registry.

The improvements introduced in the latest version of the Scilla plugin for Hardhat represent one facet of the Zilliqa infrastructure team’s ongoing commitment to enhance the development experience on the EVM-compatible Zilliqa platform.

Stay tuned to our socials and subscribe to the Zilliqa blog to stay up to date with the latest news on EVM compatibility and other announcements.

As we continue to deliver a strong start to 2024, I am thrilled to present the latest highlights and strides in the Zilliqa ecosystem, offering a glimpse into the dynamic and exciting year unfolding before us.

The standout achievements of the past month have included Zilliqa's drive to revolutionise both Web3 gaming and fan loyalty through a unique Skill2Earn approach that has the potential to shake up the market by delivering sustainable and accessible rewards to players and fans. The next generation of Web3 entertainment is here, and it is powered by Zilliqa.

This month, we were excited to see the announcement of The Winners Circle, an innovative fan loyalty programme designed to reward racing fans for engaging with their favourite sport and secured by the Zilliqa blockchain.

We also saw the resounding success of the token offering for $FPS, the in-game token for Web3War. The overwhelming response from investors and enthusiasts alike is a testament to the burgeoning potential of Web3 gaming on the Zilliqa platform.

Our infrastructure team deserves commendation for their tireless efforts in laying the groundwork for a transformative year ahead.  As we forge ahead, momentum is building towards the rollout of Zilliqa 2.0, a monumental milestone that will redefine the capabilities and possibilities of our network.

I am inspired by the potential of the Zilliqa ecosystem, fueled by the continued growth of applications such as Plunderswap, Web3War, Ionise, IgniteDAO, and Avely Finance.

I would like to thank the Zilliqa community for your continued support, and I encourage you to stay tuned for more information on our rollout plan for Zilliqa 2.0, as we prepare to unveil a truly cutting-edge protocol that will deliver unprecedented performance and flexibility.

Matt DyerZilliqa Blockchain CEO

Check out all the highlights from February 2024 below:

Building the future of Web3 gaming on Zilliqa

Among the many exciting topics circulating within and beyond the Zilliqa community over the past month, the one that ignited the most excitement was Zilliqa’s Skill2Earn approach to Web3 gaming.

Following the rise and fall of the “Play2Earn” model for Web3 gaming, Zilliqa is poised to deliver a new, sustainable approach by rewarding high-quality engagement with Skill2Earn. 

Skill2Earn solves the problems of previous models by rewarding gamers based on their skill and in-game performance, and it puts the player experience first by prioritising high-quality gameplay.

Skill2Earn has debuted on the Zilliqa network with the launch of Web3War’s in-game token and ranked gameplay matches, and it will also be integrated into other groundbreaking new Web3-powered platforms going forward, including The Winners Circle loyalty programme.

Read more about Skill2Earn and how it can drive growth for Zilliqa.

Redefining fan loyalty with The Winners Circle 

A key highlight from February was the announcement of The Winners Circle, an exclusive loyalty platform and members club built by Racing League in partnership with Zilliqa.

The Winners Circle uses Zilliqa-powered Web3 features to unlock innovative and unprecedented rewards for horse racing fans.

These include entry into prize draws for exclusive experiences, discounts on merchandise and tickets, and the opportunity to participate in a fantasy prediction game that rewards you for your skill.

At the core of The Winners Circle is its $HRSE loyalty token, which will be launched in the coming months to early investors and those looking to enjoy the benefits of The Winners Circle.

Read the full announcement of The Winners Circle loyalty platform. 

Staying in the loyalty space, February also saw the launch of Season 2 of The Pride, the fan loyalty programme from MAD Lions.

With these and other exciting announcements, the last month affirmed Zilliqa’s role in powering the infrastructure that will deliver the future of fan engagement.

Growing Zilliqa’s financial layer

February was also a great month for growing DeFi and the financial layer on Zilliqa, bringing new opportunities for ZIL holders to explore, from cross-chain DeFi yield tools to successful token sales.

A major highlight of the last month was Kalijo announcing $SEED, an upcoming digital reserve asset on Zilliqa that will allow holders to benefit from DeFi yields on other EVM networks. $SEED aims to become an anchor of the Zilliqa DeFi ecosystem by regularly and reliably extracting value from multiple blockchains and reverting growth back to Zilliqa.

February saw the official launch of $FPS, the in-game token for Web3War, with the project completing multiple successful offerings as part of its token generation event. 

The token had a wildly successful launch and generated impressive engagement across multiple exchanges and platforms.

Last month also saw Avely Finance reach a major milestone, with the amount of stZIL minted now at a total of 100 million tokens.

AMAs and Ecosystem News

Amidst the excitement around Skill2Earn and its potential to boost growth in the Zilliqa ecosystem, Matt Dyer and Zilliqa Head of Business Development Tom Fleetham hosted an AMA to break down the benefits of this exciting new model and what it means for the network.

To find out more, read the highlights or listen to the full AMA.Following the launch of its native token last month, version 3.0 of Web3War was released, introducing the Season Pass and Skill2Earn through ranked matches.

This marked the first deployment of Skill2Earn in a Web3 game powered by Zilliqa, bringing exciting new opportunities for players to earn rewards in a high-quality, online shooter.

Read the full announcement for Web3War version 3.0.

LunarCrush, the social insights platform built on Zilliqa, announced Coin Grants last month, allowing Web3 developers to apply for funding to build on the LunarCrush API.

IgniteDAO made a major announcement, too, with the launch of its Instant Unstaking Partnership, encouraging the community to drive adoption of its Torch smart wallet.

Stay tuned to our socials and subscribe to the Zilliqa blog to stay up to date with the latest news!

In an industry often marked by fleeting trends and unsustainable models, Zilliqa is pioneering a new era of GameFi with a focus on building longevity and genuine engagement. 

The nascent world of GameFi, the combination of online gaming and decentralised finance, offers exciting potential but is haunted by the early failures of Play2Earn models for Web3 games.

Through exciting new projects like Web3War and The Winners Circle, Zilliqa is pioneering a radical new approach to Web3 gaming through the philosophy of Skill2Earn, a merit-based system that rewards gamers based on their skill and in-game performance.

To explore the potential of this new Skill2Earn model and what it means for the Zilliqa blockchain, Zilliqa Technology CEO Matt Dyer recently joined Head of Business Development for Sports and Gaming Tom Fleetham for a live AMA session with the community.

They covered everything from the sustainability of Web3 gaming models to how Skill2Earn will drive value and growth for the Zilliqa blockchain, and the session concluded with some exciting news about Web3War, the flagship Skill2Earn multiplayer first-person shooter powered by Zilliqa.

Check out all the highlights from the AMA session below:

A new, sustainable approach to GameFi

Tom kicked off the discussion with a look back at the initial approaches to Web3 gaming, dissecting their shortcomings and giving context for Zilliqa’s decision to take a new approach.

“When we look at the gaming and sports sectors from the previous bull run, we see they achieved great traction but had flawed models,” Tom said.

“If you look at Axie Infinity, the growth of that game was insane. You also had fan tokens, mainly through Chilliz and Socios, performing similarly. But those models did not prove to be sustainable, and there are various reasons for that.”

“We feel that we can take a different approach and create more sustainable models this time around,” he added.

Tom noted that building a sustainable economy for Web3 gaming centres around high-quality user experiences, utility, and fair incentives for engagement.

“The fundamental problem when it comes to Play2Earn is that all the players are rewarded just for playing. What that means is that if you stop bringing in new players, you're eventually going to run out of rewards.”

“We believe that fundamentally some players need to be net contributors to the game if you're actually ever going to create a sustainable economy,” he said.

Other issues created by the Play2Earn approach to Web3 gaming include the incentivisation of the use of bots to farm rewards. As the required interactivity from users is generally low, these games can attract an audience of automated programs, building the opposite of real engagement.

This problem can be solved through high-quality gameplay aimed at traditional gaming audiences and a requirement to demonstrate skill and in-game performance.

“If all you care about in the Play2Earn model is the rewards that are coming back, then the actual quality of the game doesn't matter - as long as it's passable and works, it's good enough,” Tom said. 

“Now we're seeing a new crop of Web3 games that put gameplay first and are much higher quality, but I think the jury is still out on what model works in terms of creating a sustainable Web3 game economy, and our solution to that is Skill2Earn.”

Skill2Earn drives utility and engagement

As demonstrated by Web3War, The Winners Circle, and other projects coming soon the Zilliqa blockchain, Skill2Earn is designed to encourage deep engagement through high-quality experiences and real utility.

Matt and Tom noted that as a more mature approach to GameFi, Skill2Earn can be the key to unlocking the massive potential market for Web3 gaming by focussing on interactivity and sustainable adoption.

“We believe that Skill2Earn will give fans more of an interactive experience and an incentive to dive deeper and learn more about the sport in question,” Tom explained. “If you're going to be incentivised to be a skillful fan, that is obviously going to lead to deeper engagement.”

“Skill2Earn allows you to create a sustainable rewards economy. We don't want to create a scheme that relies on new users to be joining all the time for the value to be maintained within the project.”

Tom added that this new approach also opens up opportunities that have previously not existed for players looking to break out into professional gaming. By allowing players to earn rewards based on their performance, Skill2Earn gives gamers a clearly defined way to start earning from their sport.

“If you look at the esports industry, there is not really any such thing as a semi-pro esports player. If you compare esports with traditional sports, it's very much an all-or-nothing situation and there's also no real defined path to becoming a professional gamer.”

“Skill2Earn can actually provide a place for aspiring professionals to start earning money from playing games, and I think that has the potential to be huge. I think there are plenty of gamers out there who would fancy themselves as particularly good at one game or another, and if they have the opportunity to earn rewards based on their skill, that is going to be really appealing,” Tom said.

Tom also noted that Skill2Earn is applicable to the fan loyalty space, as exemplified by projects like The Winners Circle, through imbuing fan tokens with real utility and giving users the ability to earn meaningful rewards based on their skill and knowledge of their favourite sport.

“On the sports side, the likes of Chilliz and Socios achieved big things in terms of the fan tokens and the partnerships they closed during the last bull run. But the real problem from a sustainability point of view, and from a fan's point of view, is that there is not a huge amount of utility associated with those tokens,” Tom said.

“It's not a particularly compelling experience to be a token holder of those fan tokens. There is also generally no way to earn the token so you are not really rewarded for being a fan.”

“Ultimately the only reason to buy and hold these fan tokens becomes speculation, and that's not really what fan tokens should be about, in our opinion,” he said.

In contrast to these initial models, The Winners Circle is leveraging Skill2Earn and the Zilliqa blockchain to drive passionate engagement from horse racing fans while rewarding them with exclusive access and unforgettable experiences.

Tom also teased that Zilliqa is exploring opportunities to bring this Skill2Earn engagement approach to fan token initiatives with its existing esports partners in future.

“We really want to show what ‘good’ looks like in terms of how we create a sustainable model for Web3 gaming and how we create fan tokens with genuine utility and the ability for fans to earn them,” he said.

Building value for the Zilliqa network

Matt contextualised the launch of Web3War and The Winners Circle, and elaborated on what the success of Skill2Earn means for the Zilliqa blockchain.

“There is a lot of focus around Web3War and what we've done there, but we also have The Winners Circle and the $HRSE token coming soon as well. It's not just one game that we're looking at - it's more of a holistic play around how we are approaching the market with Skill2Earn as a key differentiator,” Matt said.

“We are strong from a layer-one perspective in terms of the infrastructure we have in place, and we have a laser focus on and around the Skill2Earn mechanism that we feel drives sustainability.” 

“I think that narrative will attract a lot of people towards Zilliqa.”

The adoption of Skill2Earn projects running on the Zilliqa blockchain can also lead to a healthier ecosystem through boosting transaction volume and interaction with other decentralised applications or wallet providers on the network.

“The activity of Skill2Earn - things like playing against other people, staking your tokens as a function to get access to features - drives on-chain transaction volume and value for the network,” Matt said.

“Transactions, particularly around smart contracts, are where gas is burned, which fuels the trajectory of a layer-one network. As we have more projects building on Zilliqa that are being used by a large number of people, that is going to drive transaction volume on the layer-one, which in turn drives a deflationary mechanic.”

This growth of Skill2Earn projects comes as exciting new tools are being deployed on the network, making the blockchain more attractive to developers and users alike.

“Looking at what's happening on Zilliqa with the success of Web3War and various other teams building some cool stuff from a DeFi perspective, we are going to start to see a lot more liquidity being put into the ecosystem,” Matt said. 

“Beyond specific games or fan engagement platforms, this downstream effect of the success of our Skill2Earn approach is really exciting.”

The AMA session was closed off with a surprise appearance from Roll1ng Thund3rz co-founder and CTO Valentin Cobelea, who announced the launch of Web3War v3.0.

This latest release of the free-to-play Web3 multiplayer shooter marks the launch of its first seasonal content update, as well as the first implementation of Skill2Earn mechanics in the game, giving anyone the ability to earn rewards for proving their skill.

Ready to try out the first-ever Skill2Earn multiplayer game powered by Zilliqa? Head to the Web3War website to get started.

The next generation of Web3 entertainment is here, and it is powered by Zilliqa.

The boom and busts of the last cycle’s ‘Play2Earn’ have haunted the GameFi space. Whilst games like Axie Infinity drove impressive user numbers for a while, the unsustainable tokenomics of several of these projects meant the ‘earn’ element was short-lived. The model was pioneering, yet imperfect. 

Zilliqa is aiming to level up these early ideas through its unique Skill2Earn philosophy, a merit-based system that rewards the best gamers, and it all begins with Web3War.

Web3War, the action-packed multiplayer shooter developed by Roll1ng Thund3rz, recently launched its $FPS in-game token, which unlocks a myriad of innovative player experiences, maps, and seasons. More significantly, this landmark brings a new dawn for gaming through a utility token that is crafted to offer genuine value to players.

Skill2Earn puts gamers and incentives first. Players are rewarded based on their in-game performance, allowing them to earn tokens for outcompeting their rivals which, in turn, incentivises deeper engagement than Play-to-Earn mechanics.

The combination of Skill2Earn with Zilliqa’s scalable and powerful Layer-1 blockchain will drive the network effects and growth of the ecosystem. Player activity in-game - via tokens, NFTs and SeasonPasses - leads to more transaction volume, wallets, TVL, and dApp development for the Zilliqa network.

The Winners Circle will also leverage Skill2Earn within its prediction games, which forms a core part of its strategy for rewarding fans for their engagement. This exclusive loyalty programme is just another example of Zilliqa’s strategy to break new ground in the entertainment and gaming space.

Let’s take a look at how Skill2Earn can drive growth on Zilliqa. 

Skill2Earn and a sustainable approach to Web3 entertainment

Many projects have attempted to leverage the unique capabilities of Web3 by implementing various types of ‘Play-to-Earn’ systems. This mechanic simply rewards players with digital currency as long as they continue to engage with the product (i.e. time = reward).

This ‘Play-to-Earn’ model initially attracted widespread attention. However, it has proven to be difficult to maintain, with a number of projects witnessing their token economy collapse due to diminishing rewards and, therefore, lower interest from gamers. Many were unsuccessful due to overly basic gameplay or simply a lack of fun.

Skill2Earn offers a refreshing and more refined approach to Web3 gaming that puts the player experience and skillful gameplay first. Rewards stem from deep engagement, dedication and results which, in turn, motivates players to become more accomplished so that their game proficiency, and not just their time, unlocks benefits.

Read more about the Skill2Earn mechanic used within Web3War.

This approach is primed to be rolled out across the Zilliqa ecosystem as Skill2Earn is fully integrated with its scalable, flexible, and interoperable infrastructure.

Engaging gaming projects that drive value for users and Zilliqa

Projects like The Winners’ Circle and Web3War drive growth on the Zilliqa blockchain through both exposing Zilliqa to new audiences and through their operations.

This results in users of these applications and others on the Zilliqa network benefitting from the operation of these layer-two applications.

When players in Web3War earn $FPS through gameplay or purchase cosmetic skin NFTs and other items, this builds transaction volume on the Zilliqa blockchain, creating value for the network’s token economy.

The increased adoption of Zilliqa brought about by these applications is also great for the network, as it leads to more people using wallets, DeFi applications, and other solutions running on the blockchain.

Whether it’s increased demand for native tokens or the deflationary result of more gas being burned for transactions, the success of projects like Web3War and The Winners Circle helps grow a healthier economy for the Zilliqa network.

This phenomenon is set to be the driver for significant growth on Zilliqa as more ambitious projects come online and their success attracts more people to build on the network.

The new Skill2Earn model used in Web3War, the Winners Circle, and other upcoming projects leaves the Zilliqa ecosystem poised for rapid expansion as it benefits from this more engaging and sustainable way to approach Web3 gaming.

With game-changing projects across a range of industries, an unprecedented and novel approach to Web3 gaming, and the technical platform to deliver fast and reliable performance, Zilliqa has quickly become the destination for scalable and sustainable Web3 projects that will help drive growth in the ecosystem.

As we kickstart the new year, I am thrilled to share the exciting updates and developments from January, which serve as a small taste of what to expect from the productive year ahead for the Zilliqa ecosystem.

The biggest highlight from the last month was the announcement of the launch of Web3War's native token and in-game currency, FPS. It is great to the massive interest in the initial offerings for the token on exchanges and launchpads. 

Congratulations to the team from Roll1ng Thund3rz for continuing to deliver on their vision for the future of Web3 gaming - I can't wait to see what comes next for this Zilliqa Group venture and their debut title, Web3War. 

I’d like to thank Bradley Laws, Zilliqa’s Head of Investor Relations, for his instrumental role in supporting the Web3War token launch. I would also like to thank the infrastructure team for their hard work at the beginning of what is sure to be a busy year from a technical standpoint. 

We are building momentum towards the launch of Zilliqa 2.0, and we continue to improve the network and prepare the blockchain for the exciting new features we have developed. 

As we embark on another year together, I am inspired by the growing potential offered by the Zilliqa ecosystem and network. The recent rollout of applications like Plunderswap, Web3War, Ionise, and Avely’s liquid staking make Zilliqa a more exciting space than ever before. I’d like to invite our community, both old and new, to get involved with these new features and applications, and to actively participate in governance. Your support is the driving force behind our continued progress and success.

January was a fantastic start to the new year, but look out for more news on Zilliqa 2.0 and other game-changing announcements coming soon - it is going to be an unforgettable year for Zilliqa.

Matt DyerZilliqa Blockchain CEO

Check out all the highlights from January 2024 below:

Zilliqa network upgrade to v9.3.0

January was a productive month for Zilliqa from a technical standpoint, with the network being upgraded to version 9.3.0.

This update brought a number of changes, one of the most important of which was the desharding of the network to improve efficiency and reliability as we progress towards the rollout of Zilliqa 2.0.

Zilliqa 2.0 will feature an improved sharding architecture that will offer greater scalability and flexibility while also featuring unprecedented customisation. 

Ahead of the implementation of this new sharding model, a proposal was passed through Zilliqa’s decentralised governance platform to deshard the network to improve efficiency.

Read more about the upgrades to the network introduced in Zilliqa v9.3.0.

Following the desharding of the network, we also conducted an analysis of mining rewards on the network and confirmed that the average profitability for miners has remained at the same level.

Adjusting staking rewards for sustainability

January saw the technical team continue to prepare the network for its upcoming migration to Zilliqa 2.0. In addition to the Zilliqa v9.3.0 upgrade, an adjustment was also made to staking rewards.

This adjustment sees the share of total rewards allocated to Staked Seen Nodes (SSNs) adjusted from its previous level of 34% to 25% at a rate of one percentage point each month until October 2024. 

The decision to adjust staking rewards was made to improve the long-term sustainability of the Zilliqa network with the goal of reaching zero inflation. This was proposed on the Zilliqa governance forum and voted on by gZIL holders, where the proposal was passed with an overwhelming majority and 112% of the required quorum.

As we move towards Zilliqa 2.0 and an overhauled, more efficient network architecture, it is great to see our community participating in governance and enacting the changes that will ensure the sustainability of Zilliqa and the ZIL token ecosystem.

Read more about the changes to staking rewards on Zilliqa.

Web3War IDOs and launchpads for token offering

The first month of 2024 was marked with building excitement in the Zilliqa ecosystem as Web3War announced the opportunity for fans to back the project and reserve its upcoming in-game currency, $FPS.

Created by Web3 entertainment and gaming company Roll1ng Thund3rz, Web3War is a multiplayer first-person shooter with powerful Web3 features that revolutionise the gaming experience, and the $FPS token is at the core of its innovative Skill2Earn reward system.

In January, Web3War announced that it had partnered with several exchanges and launchpads for the launch of $FPS, including popular platforms such as DAO Maker, Gamestarter, Gate.io. 

This announcement gave Web3 gaming fans several opportunities to back the project early and reserve their allocation of the in-game currency for Web3War, which will be used to unlock exclusive rewards, ranked gameplay access, new features, and so much more.

Visit the Web3War website to learn more and start playing today.

AMAs and ecosystem news

The Zilliqa ecosystem was buzzing in January with the news of the $FPS token offering for Web3War.

Matt Dyer joined Roll1ng Thund3rz Co-founder Valentin Cobelea for an AMA on the launch of $FPS, giving the community exciting insights into the utility and opportunities provided by the token ecosystem.Zilliqa’s Head of Ecosystem Kevin Meyer also participated in AMA last month, joining Coin Gabbar to discuss the future of dApps and the Web3 ecosystem.

Additionally, Matt Dyer announced he will be a featured speaker at Blockstart Scotland later this year, where he will explore how to overcome the common challenges faced by Web3 businesses.

On the ecosystem and developer side, the year began strongly with the launch of the Zilliqa Rust SDK, which allows developers to easily build dApps on the Zilliqa network using Rust.

Projects across the Zilliqa ecosystem continued to thrive, with PlunderSwap seeing continued growth as the first EVM DEX on the network and Torch publishing a tutorial series on how to use the powerful features of its Smart wallet.

Stay tuned to our socials and subscribe to the Zilliqa blog to stay up to date with the latest news!

2023 was a landmark year for Zilliqa, packed with major announcements, technical achievements, new partnerships, and more.

As we charted our course through the changeable landscape of the blockchain industry, the Zilliqa community and ecosystem proved resilient and capable of building exciting new products and applications regardless of which way the wind was blowing in the wider market.

One of the key missions of the Zilliqa team is to move towards a faster, more flexible network architecture that delivers value and utility across a range of industries. We are cultivating a blockchain and ecosystem of partners that offer scalable and accessible applications while delivering sustainable growth.

From a high-profile strategic alliance with Google Cloud to the rollout of EVM compatibility and launch of new Web3 gaming and loyalty solutions, Zilliqa’s progress in 2023 was a testament to the success of this result-oriented approach to building Web3 solutions. 

As we journey into 2024, we aim to continue delivering real products and features to the market while building a faster and more flexible network model that will underpin the Web3 applications of the future.

Let’s take a look at a few of the biggest highlights from the Zilliqa ecosystem in 2023:

Formation of Zilliqa Group

Building innovative new business cases on the Zilliqa blockchain requires a solid and sustainable framework for growth, and that is why we announced the formation of Zilliqa Group in 2023.

This new corporate structure encompasses several exciting ventures launching from incubation, the core Zilliqa blockchain, and the establishment of a services layer for network integration across a range of industries.

The transition to Zilliqa Group allows companies incorporated under its umbrella to offer world-class services that link and build upon technology created by other elements of the new group structure.

An example of companies incorporated under Zilliqa Group is Roll1ng Thund3rz, the Web3 entertainment company ushering in a new era of gaming that uses blockchain technology to enhance the player experience and give gamers true ownership over their digital assets.

Zilliqa Group also relaunched its metaverse venture last year, announcing the launch of MetaMinds - a Metaverse-as-a-Service (MaaS) platform provider that leverages spatial web technology to craft immersive metaverse experiences for customers.

Building strong partnerships

Zilliqa’s impressive business achievements were bolstered by the announcements of several major collaborations over the course of 2023.

Chief amongst these was the announcement of Zilliqa Group’s strategic alliance with Google Cloud, which saw the tech giant commit to operating a Staked Seed Node (SSN) on the Zilliqa network. Infrastructure operated by the Zilliqa team was also migrated to Google Cloud to improve resilience and performance across the mainnet.

2023 also saw Zilliqa announce a partnership with GMEX ZERO13 to deliver a consumer-focussed carbon offset platform powered by blockchain technology. This platform will revolutionise the way customers interact with their favourite brands, allowing them to play a more active role in offsetting their carbon footprint.

Another major announcement we made last year was a collaboration with ChainUp to expand Web3 infrastructure offerings and boost the potential of future partnerships across  key industries. As part of this agreement, ChainUp also committed to running a Staked Seed Node (SSN) on the Zilliqa network,

These and many more partnerships drove excitement around the businesses and applications building on Zilliqa while bolstering the ecosystem’s ability to deliver growth in new industries, with each collaboration marking an important milestone on Zilliqa’s path to delivering value through Web3 solutions.

EVM compatibility launched on mainnet

2023 saw significant improvements made to the Zilliqa network, one of the most important of which was the introduction of Ethereum Virtual Machine (EVM) compatibility to the mainnet.

This allowed Solidity contracts to interact with the Zilliqa network, opening up the ecosystem to a global network of Web3 developers and improving interoperability with major cross-chain platforms.

EVM compatibility continued to be improved throughout the year, with new features such as support for fungible Scilla tokens being added, as well as improvements to developer tools.

As we head into 2024, we are continuing to enhance EVM compatibility on Zilliqa, as interoperability and cross-chain communication remain a key focus for the network infrastructure team going forward.

Laying the foundation for stronger DeFi

An exciting product of EVM compatibility on Zilliqa is the potential for DeFi applications to be quickly and easily deployed to the network. 

EVM compatibility unlocks massive potential for DeFi, and we have already seen applications laying the foundations for a growing and healthy DeFi ecosystem on Zilliqa.

Ionise, the first money market protocol built on Zilliqa EVM, launched in November 2023 with support for borrowing and lending ZIL and zUSDT. The platform is an exemplar to other DeFi applications, demonstrating that EVM platforms can be deployed to and operate reliably on the Zilliqa mainnet.

Last year also saw the launch of PlunderSwap on the Zilliqa mainnet, marking the first deployment of an EVM-based decentralised exchange (DEX) on the network.

DeFi opportunities were also expanded by the introduction of liquid staking through Avely Finance, which gives ZIL stakers flexibility by giving them stZIL tokens based on how much ZIL they are staking through the platform.

Zilliqa’s DeFi ecosystem is poised for exceptional growth now that the first building blocks are on the mainnet and developers are equipped with all the tools they need to start deploying EVM applications on the network

The road to Zilliqa 2.0

Over the past year, the Zilliqa infrastructure team made significant progress on the migration of the network to Zilliqa 2.0. 

We saw changes to staking rewards to reduce the inflation of ZIL and ensure a more sustainable token economy, as well as the desharding of the network ahead of the rollout of a more efficient sharding architecture with Zilliqa 2.0.

Holders of gZIL will also be happy to hear that various governance improvements were also implemented last year, including the ability to delegate your voting power to a trusted party, ensuring that you are extracting maximum value from your role in the decision making process.

The network changes implemented as part of the roadmap to Zilliqa 2.0 were enacted through proposals on Zilliqa’s decentralised governance system and successfully passed through votes by gZIL holders.

Looking ahead to 2024, there are many more important updates coming to the network as we approach the launch of Zilliqa 2.0. If you are a gZIL holder, keep an eye on the Zilliqa governance portal and have your say on the upcoming improvements to the network.

Powering a new era of Web3 gaming

Roll1ng Thund3rz, the Web3 entertainment company behind the FUS1ON Gaming Hub and the multiplayer first-person shooter WEB3WAR, made truly impressive progress over the course of the last year.

WEB3WAR was greatly enhanced as the development team worked to deliver a truly high-quality gaming experience, and several much-anticipated Web3 features such as NFT skins were implemented into the game and the FUS1ON Gaming Hub.

FUS1ON Gaming Hub was also launched on the Microsoft Store, with a web version of its marketplace also available via a web browser.

Roll1ng Thund3rz announced a number of major partnerships last year, including collaborations with music streaming service Styngr and gaming news portal Nohto.

At the start of 2024, though, WEB3WAR is set for its biggest milestone since release: the launch of its $FPS in-game currency. 

Keep an eye on the WEB3WAR website for the latest updates on new releases and features coming this year.

Redefining the fan loyalty experience

Another major highlight from the Zilliqa ecosystem last year was our expansion into the fan loyalty space, where the Zilliqa underpins exciting new loyalty programmes and initiatives across several major brands.

We announced a partnership with Racing League UK to deliver a new loyalty programme called The Winners Circle, aimed at horse racing fans and empowered with the unique utility of blockchain technology. In this new programme, fans will have the opportunity to own shares in their favourite horses, vote on important governance decisions, compete in prediction games to earn physical and digital rewards, and enjoy exclusive discounts on tickets and merchandise.

The Zilliqa network is also powering another fan loyalty programme launched in 2023, The Pride by MAD Lions. This programme rewards fans with digital collectibles through a streamlined interface and underlying infrastructure built on Zilliqa.

Loyalty is a growing industry globally, and Zilliqa has already begun to disrupt traditional fan interactions with new and exciting initiatives that reward fans for their support with tangible rewards and experiences.

Expect to see a lot more from the fan loyalty space as Zilliqa heads into 2024 and beyond.

Exciting updates coming in 2024

2023 was a truly impressive year for the Zilliqa ecosystem, but there are even more exciting announcements coming in 2024!

Don’t miss the latest news - stay tuned to our socials and subscribe to the Zilliqa blog.

The Zilliqa network was recently upgraded to version 9.3.0, bringing a number of changes aimed at improving the reliability and efficiency of the blockchain.

One of the key changes included in this upgrade was the desharding of the network to improve efficiency ahead of a new sharding architecture being launched as part of Zilliqa 2.0.

Following the desharding of the network with Zilliqa v9.3.0, a number of miners expressed concern over potential changes to the rewards they earn for their role in securing the network.

Miners on Zilliqa compete to solve complex cryptographic puzzles in a Proof-of-Work (PoW) model to secure the network and protect against Sybil attacks. These mining nodes can be individuals or groups of miners pooling their hashrate together to take a share of the pool’s rewards.

It is important to note that the total mining rewards issued every epoch were not changed in Zilliqa v9.3.0. 

Desharding the network has led to higher competition on the single active shard as well as higher rewards for miners when they are selected by the PoW mechanism. This means that while miners may not earn rewards as regularly, they are receiving more ZIL when they do.

We have analysed the effects of desharding on mining profitability and concluded that over time, reward levels remain approximately unchanged for miners assuming their performance in supplying signatures does not change. This means that, on average, miners are earning roughly the same rewards based on their hashpower as they did before the network upgrade.

Essentially, while mining rewards fluctuate more due to the elimination of unnecessary shards, the average profitability for miners over time remains the same as it was before Zilliqa v9.3.0 was rolled out.

Thanks to profitability remaining consistent, individual miners can enjoy the same competitive rewards they have earned previously without needing to switch to larger pools. Instead, they can continue to contribute their hashpower to the mining pool which best fits their requirements, whether that is a low commission rate or dual-mining support.

The graph below shows how mining rewards have remained stable over time following the v9.3.0 upgrade rolling out to mainnet:

Mining pools with concerns around Zilliqa’s reward mechanism are welcome to provide their node information to the Zilliqa team through the relevant support channel, where we will work to address any issues they are experiencing.

Cosignature-based rewards and GCP migration

In addition to the implementation of desharding, Zilliqa v9.3.0 also saw the Zilliqa team migrate its infrastructure to Google Cloud Platform (GCP).

This migration will improve the efficiency of infrastructure and APIs operated by Zilliqa, and will also lead to reduced downtime for future network upgrades.

Following this migration, we were aware of concerns regarding the allocation of cosignature-based rewards, which are allocated to the first two-thirds of nodes that supply valid signatures during pBFT consensus.

In migrating Zilliqa-operated infrastructure to a new platform in a different region, there was a concern that this would lower the cosignature-based rewards allocated to validators on the network.

These concerns have proven to be unfounded, as the proportion of nodes earning cosignature-based rewards has remained approximately the same as before the migration of Zilliqa-operated infrastructure to GCP.

The graph below shows the validators’ success rate in earning cosignature-based rewards following the v9.3.0 upgrade rolling out to mainnet:

Cosignature rewards have also been reduced and base rewards raised to mitigate the advantage of nodes deployed in regions with lower latencies.

With the v9.3.0 upgrade now successfully deployed on mainnet, the Zilliqa network maintains a healthy level of decentralisation and is continuing to improve its sustainability. 

As we progress to Zilliqa 2.0, expect to see more exciting features and improvements rolled out to the Zilliqa network. 

The technical team continues to work hard on overhauling Zilliqa to become a faster and more flexible protocol with a powerful new sharding architecture set to test the boundaries of blockchain’s capabilities.

Want to stay up to date with the latest news on Zilliqa 2.0? Subscribe to our blog and stay tuned to our socials for future updates.

The Zilliqa technical team has launched a new Rust Software Development Kit (SDK) that allows developers to build decentralised applications (dApps) on the Zilliqa blockchain using the Rust programming language.

Version 0.2.0 of the zilliqa-rs SDK is officially live, offering several features that make it easy for Rust developers to build and interact with Scilla contracts using the native Zilliqa API.

The SDK comprises built-in libraries that allow developers to easily interact with the Zilliqa API from within their Rust application, encompassing everything from transferring ZIL between addresses to interacting with complex contracts.

The new Rust SDK brings more flexibility and accessibility to the developer experience on Zilliqa, expanding the options for building applications and opening up the network to more developers across the world.

It is important to note that this initial release of the Zilliqa Rust SDK is subject to future improvement and we welcome any feedback from the community regarding bugs and other issues with the toolset.

As with many other Rust packages, documentation for the Zilliqa Rust SDK is available on crates.io.

Zilliqa Rust SDK features

Version 0.2.0 of the Zilliqa Rust SDK supports a number of important features, including all JSON-RPC endpoints for the Zilliqa API.

This means Rust developers can build applications that interact with the testnet and devnet in addition to the Zilliqa mainnet, allowing them to test out their applications before deploying or interacting with contracts on the mainnet.

The SDK also streamlines a number of functions related to creating and signing blockchain transactions. The toolkit includes a TransactionBuilder, which significantly simplifies the process of composing transactions for publication on the network.

When it comes to interacting with contracts, the Zilliqa Rust SDK generates corresponding Rust code for Scilla contracts. All contract transitions generate corresponding Rust functions, there are certain functions that allow developers to read the current state of the contract, and the built-in deploy function makes it impossible to accidentally deploy a contract with the incorrect parameters.

All data types in Scilla, including complex types, are converted to Rust in a type-safe manner, meaning incorrect data types can’t be passed into a function where a different type is required. This makes the powerful type-checking features of Rust available to developers when building or interacting with Scilla contracts.

For a breakdown of the features available in the Zilliqa Rust SDK, read the release notes on GitHub.

Using the new Rust SDK for Zilliqa

Before you get started using zilliqa-rs in your Rust application, you will need to create a new binary project and add both zilliqa-rs and tokio as dependencies for your project.

In order to call the Zilliqa API from your application, you must first create an HTTP provider using the URL of the Zilliqa network you wish to interact with. A list of URLs for the Zilliqa mainnet and test networks can be found on the Zilliqa Developer Portal.

Now that you have added zilliqa-rs as a dependency and set up an HTTP provider for the Zilliqa API endpoint, you are able to interact directly with the blockchain using the features included in the Rust SDK.

From within your Rust application, you are now able to complete operations such as reading the balance of a wallet address, creating a new wallet, and sending ZIL from your wallet to another on the Zilliqa network.

More complex contracts are also supported. By defining a path to a contract saved as a Scilla file, the Rust SDK automatically generates corresponding functions for the transitions in the Scilla contract you have pointed to.

This allows you to first deploy a contract on the network before reading its state and calling its transitions to update the state of the contract, all directly from within your Rust application.

Read more on GitHub for a detailed guide on how to use the Zilliqa Rust SDK.

From January 16, 2024, staking rewards will begin to be reduced in line with the staking reward reduction proposal passed through a formal governance vote last year.

Staking rewards are earned by Staked Seed Nodes (SSNs) for their essential role in processing information and serving data access to users on the Zilliqa network. ZIL holders are able to delegate the ZIL in their wallet to SSN operators, who then return staking rewards to holders after taking a small commission for this service.

Zilliqa currently provides a considerable staking reward and exhibits inflationary characteristics, which means that without intervention the Zilliqa network will eventually exhaust its supply of ZIL for mining and staking rewards.

On July 31, 2023, a proposal to reduce staking rewards on a monthly basis was voted on by the community and passed by majority vote with 112% of the required quorum. This adjustment aims to reduce the staking annual percentage rate (APR) to approximately 8% over a period of 15 months.

This is accomplished by reducing the share of the total rewards within the network received by SSNs from 40% to 25% at a rate of 1% per month. Mining rewards are unaffected by this change and the remaining ZIL will be retained in the unallocated ZIL pool.

This reduction in staking rewards aligns Zilliqa’s reward mechanisms more closely with industry-standard staking reward levels and will aid in balancing the burn and reward rates to ultimately achieve zero inflation on the network.

Read more about this reduction in staking rewards on the Zilliqa governance forum.

Staking reward reductions and APR changes

Following the release of Zilliqa v9.3.0, it is now possible to implement this proposal and reduce staking rewards in line with the proposal passed by gZIL holders.

The first reduction in staking rewards will occur on January 16, 2024, with the staking reward value being reduced to 34%. 

This initial adjustment retroactively accounts for the approved reduction of rewards by 1% per month following the proposal being passed last year. On February 13, 2024 and for every month thereafter, this value will continue to be reduced by 1% until staking reward levels reach the target value of 25%.

These monthly adjustments will have an effect on the Annual Percentage Rate (APR) earned by ZIL stakers, reducing this value over time until the percentage of total rewards allocated to SSNs reaches 25%.

Below is an approximate breakdown of how the monthly reduction in staking rewards will affect APR, assuming a fixed supply of staked ZIL.

Month

SSN Reward Share

Approximate Staking APR

January

34%

11.24%

February

33%

10.91%

March

32%

10.58%

April

31%

10.25%

May

30%

9.92%

June

29%

9.59%

July

28%

9.26%

August

27%

8.93%

September

26%

8.60%

October

25%

8.27%

At the current rate of staking reward reductions, the target value of 25% will be reached in October 2024. 

It should be noted that the proposal allows for staking reward levels to be reconsidered and possibly increased once zero inflation is attained within the Zilliqa network. As with this proposal to reduce reward levels, any further changes to staking rewards will be discussed and voted on through Zilliqa’s decentralised governance platform.

Adjusting staking rewards according to the schedule above will gradually aid the Zilliqa network in moving towards zero inflation and ensuring long-term sustainability of the ZIL token ecosystem.

As we conclude another busy and productive year, I find myself reflecting on the incredible journey we've shared at Zilliqa in 2023. The strides we made last year not only underscore our unwavering commitment to innovation and excellence but also set the stage for what promises to be a groundbreaking 2024 - a year filled with potential for Zilliqa and our expansive ecosystem.

December was a busy month for Zilliqa as we rounded off a year of landmark achievements. One of the biggest highlights from the last month was the announcement of the token sale for $FPS, the in-game currency for WEB3WAR. 

The team at Roll1ng Thund3rz aims to deliver a new and improved gaming experience powered by Web3, and it is exciting to see them move ever closer to redefining the world of gaming with the imminent launch of $FPS.

Our partnership with 1ex Trading Board, also secured in December, marks a major step in our efforts to bridge the gap between traditional digital trading and blockchain technology. We can’t wait to deliver new and exciting opportunities together with the ‘Bloomberg of Crypto’.

I would like to thank the technical team for their continued hard work in delivering a faster and more reliable network. Even in the face of unforeseen disruptions, the infrastructure team continues to enhance the Zilliqa blockchain and build a new and improved network for Zilliqa 2.0.

As we enter a new year and look back at all we have accomplished in 2023, I am proud to be part of this exciting ecosystem that will lead the charge in bringing the power of Web3 to the wider world.

Thank you to the Zilliqa community for your continued support and feedback over the last year. Here’s to an even more remarkable 2024!

There are many exciting new announcements coming soon, so stay tuned for a glimpse of what to expect from Zilliqa over the year ahead.

- Matt DyerZilliqa Blockchain CEO

Check out all the highlights from December 2023 below.

WEB3WAR gears up to launch in-game currency

An important milestone in December was the news that WEB3WAR, the free-to-play multiplayer shooter developed by Roll1ng Thund3rz, is gearing up to launch its in-game currency, $FPS.

WEB3WAR combines AAA-grade first-person shooter gameplay with powerful Web3 features, allowing players to earn tangible rewards by proving their skill against others. The $FPS token is central to this engaging game design and is secured by the Zilliqa blockchain.

Ahead of the launch of its in-game currency, WEB3WAR will be available on different launchpads, and currently it can be accessed via the Sors Digital Assets Platform. 

This means that those who want to play a part in creating the future of Web3 gaming with WEB3WAR can now contribute to the project through the Sors Dealroom.

Read more about $FPS, the in-game currency for WEB3WAR.

The upcoming launch of $FPS and the WEB3WAR token sale received extensive coverage across the gaming and blockchain spaces, with the team participating in a host of AMAs and interviews to break down the specifics of the game’s design and the role $FPS plays in the FUS1ON ecosystem.

Matt Dyer and Valentin Cobelea made a number of appearances throughout the month, including in a popular video interview published by Decrypt. 

Partnering with 1ex to level up digital asset trading

In the world of DeFi and digital asset trading, Zilliqa also made headlines this December by announcing a new partnership with 1ex Trading Board.

The partnership brings the worlds of advanced digital trading and blockchain technology closer together, building around Zilliqa’s ability to deliver efficient and reliable blockchain infrastructure and 1ex’s vision to become the ‘Bloomberg for Crypto’.

This marks another step in the continuous journey towards growing the versatility and appeal of Zilliqa’s ecosystem by bridging the gap between disparate blockchain economies and professional trading.

Zilliqa CEO Matt Dyer appeared on an AMA session with 1ex Trading Board to discuss the details of the partnership and current trends in the wider blockchain and financial industries.

Watch the full AMA with Matt Dyer and 1ex Trading Board.

Improving reliability and performance

Throughout December, the Zilliqa infrastructure team continued to work on improving the reliability and performance of the Zilliqa network.

In line with the roadmap for the rollout of Zilliqa 2.0, the team has worked to implement a number of major improvements to the network aimed at enhancing reliability and performance while preparing for a shift to an improved sharding architecture and new consensus mechanism.

The team also worked on implementing proposals to deshard the network and implement active reward control following a vote for these changes being passed successfully on the Zilliqa governance portal.

The Zilliqa network suffered downtime on December 18, 2023 due to an interruption in block production, which was later resolved with normal functionality being restored later in the day.

Following this disruption, we conducted a root cause analysis to determine the nature of this issue and mitigate the risk of any future disruptions going forward.

We apologise again for the inconvenience caused by this downtime and appreciate the continued support of the Zilliqa community as we work to improve the network’s resilience and reliability.

Taking a look back at Zilliqa in 2023

December marked the exciting final stages of a landmark year for the Zilliqa network, replete with massive network upgrades, major collaborations with big tech, new features, and the launch of many new applications on the network.

Taking a look back at the impressive progress made across the Zilliqa ecosystem in 2023, Zilliqa CEO Matt Dyer recapped some of the biggest highlights from the past year.

Highlights included a strategic alliance with Google Cloud, the launch and continued development of EVM compatibility, major partnerships across several big industries, the formation of Zilliqa Group and launch of Roll1ng Thund3rz and MetaMinds, a strategic expansion into the fan loyalty industry, and much more.

Watch Matt’s full recap of the highlights from the Zilliqa ecosystem for 2023.

AMAs and Ecosystem news

The Zilliqa ecosystem was abuzz in December following major announcements such as the launch of WEB3WAR’s in-game currency.

Among many engagements in the past month, Matt Dyer joined Mario Nawfal’s Spaces show to explore the future of blockchain technology and lay out Zilliqa’s vision for the year ahead, and he also appeared on Edge of NFT to discuss the future of Web3 gaming and the launch of the $FPS token for WEB3WAR.

Touching on Zilliqa’s recent strategic alliance with Google Cloud, Matt Dyer and Google Cloud Head of Web3 James Tromans hosted an AMA to discuss the nature of this collaboration and the role blockchain infrastructure will play in the future of big data.

Read the full highlights from the AMA with Zilliqa and Google Cloud.

The Zilliqa ecosystem continued to grow, with many apps seeing continued growth throughout December, and the community was productively engaged in discussing and contributing to the success of the exciting new ventures being undertaken on the Zilliqa network.

To celebrate a wonderful year of innovation at Zilliqa, we also hosted a Christmas giveaway at the end of the month, giving lucky members of the community a chance to win $100 worth of ZIL.

There are exciting things to come in 2024 for Zilliqa, so stay tuned to our socials and subscribe to the Zilliqa blog to stay up to date with the latest news!

The Zilliqa network has been successfully upgraded to v9.3.0, with the network upgrade rolling out to mainnet on January 3, 2024.

Zilliqa v9.3.0 is a significant upgrade to the network, improving reliability and efficiency while implementing powerful new features aligned with the roadmap for Zilliqa 2.0.

The changes included in the upgrade embody the continuous efforts of the Zilliqa infrastructure team to enhance the blockchain’s capabilities and efficiency as we progress towards deploying an overhauled version of the network later this year.

Take a look at a few of the major changes introduced in Zilliqa v9.3.0 below.

Desharding and active reward control

One of the headline changes in the latest upgrade to the Zilliqa network is the introduction of active reward control and the desharding of the network ahead of the implementation of a new and improved sharding architecture.

These improvements were enacted following a voting process on Zilliqa’s decentralised governance platform, with the relevant proposals receiving a majority of favourable votes from gZIL holders on the governance portal.

The active reward control mechanism will safeguard ZIL holders and miners against sudden inflation changes that have accompanied software performance improvements on Zilliqa. Reward levels will be regularly revised based on network decisions and governance decisions while assuring industry-competitive returns for miners and stakers.

As we approach the launch of a more flexible and efficient sharding architecture with Zilliqa 2.0, shards will be temporarily eliminated from the network to improve efficiency until the new sharding architecture is implemented.

This will significantly reduce block time, improving the overall efficiency and throughput of the Zilliqa network.

Read more about the active reward control and desharding changes introduced in Zilliqa v9.3.0.

EVM compatibility improvements

EVM compatibility remains a key focus for the Zilliqa infrastructure team, improving the blockchain’s interoperability and accessibility while opening up the network to a global pool of developers and applications within the industry.

With Zilliqa v9.3.0, EVM compatibility continues to be improved. Support has been added for Type 1 and Type 2 EVM transactions, expanding compatibility with EVM applications.

The upgrade also includes the ability to reflect errors when calling Scilla contracts with EVM applications directly in the transaction receipt.

Various other enhancements have been added around EVM compatibility, including support for integer block numbers in ETH APIs and a range of bug fixes.

Efficiency improvements and migration to GCP

The Zilliqa infrastructure team is working continuously to improve the performance, efficiency, and reliability of the Zilliqa network as we approach the launch of Zilliqa 2.0.

As with other network upgrades, Zilliqa v9.3.0 includes several changes to improve network efficiency and stability.

These include the addition of header hash parameters to improve mining efficiency and refinements to CODEHASH to improve contract processing performance.

The Zilliqa team has also begun migrating the infrastructure it operates to Google Cloud Platform (GCP), following a strategic alliance struck between Zilliqa and Google Cloud last year.

Migration to GCP will improve the efficiency of infrastructure and APIs operated by Zilliqa and will also lead to reduced downtime for future network upgrades.

For a full list of the changes included in Zilliqa v9.3.0, read the release notes below:

Release Notes - Zilliqa v9.3.0

Release Notes - Scilla v0.13.4

If you are experiencing any issues interacting with the Zilliqa network following this upgrade, please read our notes on issues raised post-upgrade, or open a ticket on our Discord.

Stay tuned to our socials and subscribe to the Zilliqa blog to stay up to date with the latest news from Zilliqa.

We updated the Zilliqa Network to v9.3.0 on Tuesday; the upgrade on the day went smoothly and we’d like to thank our partners for their assistance.

The network has been producing blocks consistently since the upgrade, and transactions are being processed correctly.

With such a significant upgrade, it is expected that there will be some initial challenges, which we are actively addressing and resolving. If you are having an issue that you believe we are not aware of, please open a ticket on our Discord.

API performance issues: After the upgrade, we had some API performance issues. These were resolved earlier in the week so please let us know if you are experiencing problems.

Bridge service downtime: ZilBridge is experiencing some downtime and we are working closely with Switcheo (who maintain and develop ZilBridge) to resolve this. We believe the issue is a latent software bug that, on a chain upgrade, prevents the PolyNetwork/Zilliqa interface implemented by Switcheo from confirming the composition of the DS committee. This is not code Zilliqa have control over but we will continue to provide support to Switcheo and we suggest you refer to them directly for a timeline for resolution.

Exchange integration delays: Some exchanges have reported issues post-update. We believe most of these issues have been addressed, although we are still awaiting feedback from some exchanges. In cases where specific issues are unique to an exchange, we are actively assisting with tailored solutions to ensure that they come back online as soon as possible.

Mining and transaction challenges: Some mining pools have reported that they are experiencing difficulties, particularly with batch transactions. An API update intended to resolve these was recently deployed and we are closely monitoring its effectiveness. Additionally, we are aware of concerns regarding the rewards system; we believe that this is currently operating as approved by governance. We invite interested parties to contact us with feedback. Per governance proposal GP008 we are able to review the level of rewards in February and a report will be posted to github.com/zilliqa/zip at that time. 

Node synchronization and startup issues: We’re aware that some SSN operators are experiencing difficulty syncing their nodes and we are working with them to resolve these on a case-by-case basis. If you are having these issues and are not already in contact, then please get in touch and we will assist you.

Wallet transactions: There have been reports of transactions not reflecting in wallets, specifically with Exodus. We are working with the wallets concerned to address these. If you encounter any issues, please make us aware and we will attempt to contact the wallet developers to offer assistance. Please be assured that on-chain funds are safe. All transactions can be verified on viewblock.io/zilliqa.

Our Commitment to Resolution and Support

We are committed to resolving these issues and have mobilised our technical teams to provide support wherever needed. Our approach includes:

Direct support to partners and exchanges: We are in continuous communication with exchanges and partners to assist them in troubleshooting and resolving upgrade-related issues.

Regular updates and transparency: We will keep our community updated regularly. Your understanding and patience during this time are highly appreciated.

Open channels for feedback and reports: We encourage our users to report any anomalies they encounter by opening a ticket on our Discord. Your feedback is instrumental in helping us identify and address issues more efficiently.

Thank you for your continued trust in Zilliqa.

 

The Zilliqa network experienced a disruption on December 18, 2023 which resulted in several hours of downtime.

This situation resulted in block production being temporarily interrupted before full network functionality was restored by the technical team later the same day.

Following this disruption, the Zilliqa technical team has conducted a root cause analysis of this event and found it to be the result of a critical inconsistency issue caused by a divergence in root hashes.

We apologise for the inconvenience caused by this incident and appreciate the support exhibited by the Zilliqa community as we worked to resolve the network downtime.

Below is the technical team’s analysis of this disruption and the steps we are taking to improve the reliability of the Zilliqa network.

Root Cause Analysis - Zilliqa Network Disruption on December 18th

The root cause analysis conducted by the Zilliqa technical team found that a critical inconsistency issue was encountered during the processing of block 3428513, with a subset of nodes failing to receive the complete set of microblocks associated with this block. 

As a result, this subset of nodes derived a divergent root hash to the rest of the network, leading to a conflict in establishing consensus.

These nodes subsequently exited consensus, leaving an insufficient number of votes to commit this block, and attempts to retry this commitment led to the same issue of a mismatch between root hashes.

The Zilliqa network's existing codebase heavily relies on the assumption of reliable object gossiping across the network, and while there are mechanisms in place intended to recover from such discrepancies, in this instance, the relevant recovery code failed to activate.

To rectify this issue and restore consensus, it was necessary that the Zilliqa network be restarted. This straightforward procedure was immediately enacted, however it resulted in several hours of downtime.

Improving Zilliqa’s reliability and efficiency

The incident on December 18, 2023 demonstrates the need for the continuous improvement of Zilliqa’s reliability and efficiency.

The technical team is working hard to roll out network architecture upgrades that will enhance the reliability of the Zilliqa network and reduce the risk of downtime due to incidents like the one described above.

Upcoming updates to Zilliqa are set to deliver a major boost to overall network resilience and mitigate both the risk and impact of a similar incident occurring in future.

A number of network improvements are being implemented that will not only deliver major performance enhancements and exciting new features, but will also directly improve the network’s capabilities to handle any disruptive incidents.

These changes include the following:

Zilliqa network upgrade v9.3.0

The Zilliqa v9.3.0 upgrade, deployed on January 3, 2024, greatly diminishes the risk of similar inconsistencies and disruptions to consensus through desharding the network.

This change will improve the network’s efficiency and reliability, providing a solid foundation for the launch of a new and improved sharding architecture with Zilliqa 2.0.

Zilliqa v9.3.0 also features a new active reward control mechanism, improved EVM compatibility, mining efficiency improvements, and much more.

Migration to Google Cloud Platform (GCP)

As part of Zilliqa’s strategic alliance with Google Cloud, nodes operated by the Zilliqa infrastructure team are in the process of migrating to Google Cloud Platform (GCP).

This will have a significant impact on network startup times, allowing the network to be restored far more quickly and minimising any potential downtimes in scenarios where this is required.

A more reliable network with Zilliqa 2.0

Zilliqa 2.0, which is currently expected to be released in the second half of 2024, addresses fundamental issues related to this disruptive incident.

This overhauled and greatly enhanced version of Zilliqa will eliminate the reliability assumption in network object gossiping, which is the primary cause of the downtime experienced on December 18. It will also use a new consensus mechanism that allows for consensus to be maintained in similar scenarios via a self-healing model.

Zilliqa 2.0 will also introduce more effective data persistence, reducing the lengthy join times currently observed on Zilliqa. 

Additionally, instead of the several hours currently required to restore the Zilliqa network, Zilliqa 2.0 will be designed to boot up completely in approximately 10 minutes.

All the changes described above are designed to greatly improve the reliability of the Zilliqa network, delivering an efficient, flexible, and stable network that minimises disruption. 

The incident on 18 December underscores the need for a more reliable and dynamic network architecture, which is the core of the design philosophy for Zilliqa 2.0 and the upgrades currently being rolled out to the network.

We apologise again for the inconvenience caused by this downtime and appreciate the continued support of the Zilliqa community as we work to improve the network’s resilience and reliability.

Earlier this year at Token2049 Singapore, Zilliqa Group and Google Cloud announced a multi-year strategic alliance to enhance the data availability and resilience of the Zilliqa network.

The collaboration is a landmark step in the Group’s strategy for expanding its enterprise infrastructure offerings for future partnerships and also encompasses a number of improvements to the elements of the Zilliqa network that it operates.

Google Cloud announced that as part of this alliance, it would operate a Staked Seed Node (SSN) on the Zilliqa network, helping to record a historical archive of transactions and secure transaction correctness on the network.

SSNs are a crucial part of the Zilliqa network, offering a public record of verifiable transactions to users and builders on the blockchain.

Find out more about what SSNs are and the role they play in the Zilliqa network.

Following this announcement, Zilliqa Group CEO Matt Dyer joined Google Cloud Head of Web3 James Tromans for a discussion on the details of this alliance, their views on the future of Web3, and much more.

Check out the highlights from this AMA session below. 

Collaborating to drive innovation in the Web3 space

The conversation began with both Matt and James giving their views on the announcement of the strategic alliance, explaining its benefits and framing the multi-year collaboration in the context of wider innovation across the Web3 space.

“Google Cloud has been in and around the Web3 space now for quite a few years. It's our pleasure to be working with Zilliqa now with respect to layer-1 blockchain solutions,” James said.

“Our ability to run a Staked Seed Node is something that is, I think, fairly unusual amongst cloud providers. There are not many other folks that are in a better position to offer these sorts of partnerships and capabilities.”

“I think some of the other benefits that we bring to the relationship from a strategic standpoint is we've been growing a lot in the APAC region and we see a lot of business interest here as well,” he added.

Matt went on to describe the Zilliqa Group’s perspective regarding infrastructure providers and the benefits of working with companies like Google Cloud that are aligned in terms of their Web3 vision.

“We've been looking around from an infrastructure play in terms of who do we partner with, and I think very much from our initial interactions with Google Cloud, it was very much about the hands-on approach and the ability to interface as a team to do the migration from the vendor we're currently using to Google Cloud,” Matt said.

“From our perspective, community is obviously massive in the Web3 space and we felt that the ethos of Google Cloud around understanding Web3 and doing a lot for the space at a moment was a really important point to the relationship.”

“When you look at it from our ecosystem perspective as well, having an infrastructure play that a lot of the ecosystem partners could also leverage is very exciting for us as part of the strategic background,” he said.

Technical impact and matchmaking for Web3 enterprise solutions

Matt noted that the Zilliqa technical team was already benefiting from the transition to Google Cloud, adding that due to the Web3 space requiring reliable infrastructure around the clock, uptime is a crucial component for applications built on the Zilliqa network.

“A major benefit is the lack of impact to the business already operating. Crypto is clearly 24/7 and from our perspective, uptime is a key component.”

“We’ve also got a big vertical play in gaming, and Google Cloud hosted Jump Crypto’s Web3 Gaming Week in Singapore recently. We had one of our sister companies from the gaming vertical as a part of that,” Matt added.

“I think there is a lot of synergy, not just from an infrastructure perspective but also that Zilliqa Group is going to get a lot of value in terms of bringing new businesses to come and work with our blockchain, and equally on the other side, hopefully we can bring Google Cloud new applications or new businesses who want to come in and get set up with Google Cloud.” 

Elaborating on this potential to collaborate on growing a Web3 ecosystem, James explained that Google Cloud’s vision for Web3 goes beyond providing infrastructure to connecting companies that build the next generation of Web3 applications.

“Google Cloud has an interesting role to play in this space beyond just network and infrastructure. We obviously have a very large startup and SMB ecosystem that's been growing with us, especially in the Web3 space.”

“But then we also have the traditional financial services businesses, very large enterprises. We've been extremely successful in working with them as well, and yet there is a natural gap there in the sense they're not exclusively in Web3,” James explained.

“When we talk to our enterprise customers, they're often asking about blockchains and how they can learn more and partner with them. We see our role here as beyond that of purely technical - We see it as an opportunity to connect folks, to educate, to bring people together.”

Matt expanded on Google Cloud’s unique position in connecting Web3 startups and enterprise, highlighting how this could be a major growth driver for Zilliqa Group.

“We have got to the stage where we're definitely commercialising what Zilliqa Group is trying to do.”

“Working with some of the organisations you're talking about and building out products on the blockchain - I think that is going to be really beneficial to both parties in terms of moving the industry forward.” Matt said.

Mainstream adoption and the future of Web3

The conversation also focussed on what the Web3 space needs to accomplish to reach mainstream adoption, with both Matt and James stressing the importance of accessibility and streamlining the user experience as crucial to the growth of the technology.

“I think there's a lot of lessons that could be learned from the likes of Google Cloud if we look at  the education, the documentation, and the seamless nature of the migration. Blockchain doesn't have that,” Matt said.

“You've got MetaMask, you've got various mechanisms for people to onboard which are really, really challenging. It is very much about coming at it from a UX and UI perspective, understanding the journeys and building applications that deliver that value transfer in a way that makes sense.”

James affirmed this approach, stating that in order for Web3 technology to reach widespread adoption, it would need to be as easily accessible as the web is today.

“I always say if the user has to know they're using Web3, then we have missed it,” he said.

“I think when we see mass adoption, we'll know because we won't be talking about Web2 or Web 2.5 and Web3. We'll just be talking about the web again and the underlying technology, whilst important and critical, won't be the main thing.”

“I do think there's a lot to be learned from Web2. I think we don't just want to forget all of that great innovation and the smart people that helped us get to where we are today. We want to take those lessons forward, learn from the mistakes, and make sure that we don't make them again,” James added.

The conversation concluded with a final question around the future of Web3 from both Zilliqa Group and Google Cloud’s perspectives.

Matt explained that Zilliqa Group’s strategy is to lead the way in the industry by demonstrating scalable, revenue-generating business models built on the blockchain.

“We have got the right partner to enable us to scale or flex or do whatever we need to do as a function of our growth. The space needs to see revenue-generating businesses,” he said.

“Zilliqa Group's vision is becoming a revenue-generating entity so that we can show the market what good looks like. We've got case studies that prove there is revenue to be made in the space because at the moment nobody is doing that.”

Speaking more generally about the future of the Web3 space, James noted that the concept of digital identity would be critical to the success of the industry.

“A successful future will see clarity on how we're going to manage digital identity at scale, and these will be foundational building blocks, aside from purely just the role of technology, that will help us get to solving these business problems and real value creation.”

If you want to hear the full conversation between James Tromans and Matt Dyer, check out the full AMA session.

As we step into the last month of the year, it's with great pleasure that I share the remarkable achievements made by the Zilliqa ecosystem throughout November. 

Last month was undeniably a pivotal period for us, marked by groundbreaking developments that reinforce our commitment to progress and growth.

We witnessed a watershed moment with the launch of Ionise on mainnet, which is a major step towards building a flourishing DeFi ecosystem on the Zilliqa network. Ionise showcases the ability for battle-tested protocols to be deployed on Zilliqa thanks to its native EVM compatibility, paving the way for more DeFi platforms and tools to be built out in future.

November was also an impressive month in the gaming and fan engagement spaces. Our partnership with Racing League gives us the opportunity to shape the future of fan loyalty programmes with the powerful incentives delivered by Web3 technology, and the success of this approach is already bearing out in our existing loyalty-focussed partnerships.

Roll1ng Thund3rz has continued to expand and improve its Web3 gaming ecosystem, onboarding more players and rolling out more updates for WEB3WAR and the FUS1ON Gaming Hub. The launch of the $FPS token and Skill2Earn is just around the corner, and I am excited to share more news around this milestone achievement in the near future.

As we conclude an eventful November and approach the end of an impressively productive year for Zilliqa, I extend my gratitude to the entire Zilliqa community for your unwavering support. 

Together, we're shaping the future of blockchain technology.

- Matt DyerZilliqa Group CEO

Check out the highlights from the Zilliqa ecosystem for November 2023 below:

Ionise launched on Zilliqa EVM

November was a landmark month for the growth of DeFi on the Zilliqa network, headlined by the launch of Ionise on mainnet.

Ionise is the first-ever money market protocol built on Zilliqa EVM, meaning it includes native support for popular EVM-compatible wallets like MetaMask.

This platform allows users to lend or borrow tokens running on the Zilliqa EVM network and is completely non-custodial, allowing users to retain full control over their holdings. 

Following this launch, we spoke to Zilliqa Head of Product Anton Agafonov to learn more about the launch of Ionise and how this EVM-based platform paves the way for a better DeFi ecosystem on Zilliqa.

The functionality offered by Ionise will expand as development progresses, and the protocol demonstrates how EVM apps can easily be deployed on Zilliqa and highlights a massive opportunity for DeFi growth with significant first-mover advantage for developers.

Powering a fan loyalty revolution

On the heels of the recent announcement of the partnership between Racing League and Zilliqa Group, we have continued to build out our vision for redefining the fan loyalty industry and empower fan experiences with Web3 technology.

As part of this partnership, Racing League and Zilliqa Group will deliver a platform that allows fans to be rewarded for their support and engagement with unique incentives, from having a say in the running of their favourite team to having the opportunity to own a share of a race horse.

The Web3-enabled loyalty programme developed under this partnership will build on Racing League’s approachable format by offering fans tangible rewards for their engagement and allowing more people around the world to feel personally connected to their favourite teams.

Existing loyalty programmes powered by Zilliqa have also seen impressive engagement - The Pride has seen amazing adoption, with thousands of people signing up from 56 different nationalities. In addition, 65% of those are super-active users who regularly return to the platform to complete multiple quests.

The early success of these initiatives shows the exciting potential of Zilliqa to overhaul the loyalty space and redefine how fans interact with brands.

Read our full interview with Tom Fleetham, Zilliqa Head of Business Development for Sports and Gaming, on how Zilliqa will power the fan loyalty revolution.

Improving network efficiency ahead of Zilliqa 2.0

As the Zilliqa infrastructure team continues to work on the rollout of Zilliqa 2.0, we received great support from the community in pushing through important changes to the network.

November saw new proposals being passed through the Zilliqa governance portal that are necessary steps towards the overhaul of the network.

gZIL holders voted in favour of implementing active reward control and desharding as part of the migration to Zilliqa 2.0. 

These changes address the inflation of ZIL as block production rate has increased as well as the temporary elimination of shards as we approach the launch of a new and more flexible sharding ecosystem with Zilliqa 2.0.

Find out more about these proposals on the Zilliqa blog.

WEB3WAR and FUS1ON lead the charge in Web3 gaming

Roll1ng Thund3rz continues to spearhead innovation in the Web3 entertainment space, delivering exciting new features and capabilities within its growing gaming ecosystem.

November saw the launch of version 3.0 of the FUS1ON Gaming Hub, which features major performance enhancements, an overhauled user interface, bug fixes, and more.

WEB3WAR continues to receive regular updates laden with high-quality content such as new maps, cosmetic skin NFT collections and gameplay enhancements. You can find the latest features added to WEB3WAR in the official release notes.

The game was also featured by DappRadar as one of the top first-person shooters to watch in the world of Web3!

Fans of Web3 gaming will be excited to learn that the launch of WEB3WAR’s in-game currency token, $FPS, is coming soon, together with the game’s innovative Skill2Earn system and reward mechanics.

Read more about the Web3 features coming soon to WEB3WAR.

Ecosystem news

Across the rest of the Zilliqa ecosystem, we have seen exciting updates from major projects building on the network.

In the last month, Zilliqa Group bolstered its partnership with XCAD Network, part of which saw the Group extend its vesting period and subsequently reduce the projected inflation of the XCAD token.

XCAD also announced the launch of single-asset staking on Zilliqa, allowing token holders to earn returns by staking their tokens through the XCAD DEX.

We were pleased to support Avely Finance’s Innovation in EVM challenge at the ETH Abu Dhabi hackathon last month, matching their offered bounty of $1,000 to grow developer engagement with the Zilliqa EVM network.

There was great news in the DeFi space beyond the launch of Ionise, with DefiLlama announcing that it is now tracking Plunderswap, the first DEX built on Zilliqa EVM.

IgniteDAO also rolled out a new update for its Torch wallet, adding powerful new functionalities and general improvements to its mobile app for Android and iOS.

Stay tuned to our socials and subscribe to the Zilliqa blog to stay up to date with the latest news from Zilliqa.

At Zilliqa, we're constantly exploring new avenues to expand our ecosystem and bring innovative experiences to our community. Today, we're excited to announce our partnership with 1ex Trading Board, a platform aiming to become the 'Bloomberg for crypto' for professional traders. 

This partnership marks a significant stride in bringing the worlds of advanced blockchain technology and professional trading closer together.

1ex Trading Board stands at the forefront of professional crypto trading, offering a platform that promises to revolutionise how trading is conducted in the digital asset space. Their focus on providing top-tier tools and services for traders aligns perfectly with our commitment to innovation and excellence.

‘At 1ex, we aim to provide traders with the best tools and opportunities. Partnering with Zilliqa enhances our capabilities, allowing us to integrate their innovative blockchain solutions into our platform, offering a unique and enriched trading experience for our users,’ says Dmitry Litvinov, co-founder and CEO of 1ex.

‘The collaboration with Zilliqa is a strategic step towards redefining the professional trading environment. We are thrilled to leverage Zilliqa's robust blockchain ecosystem to bring more value and advanced features to our trading community.’

Our collaboration with 1ex is a testament to the growing versatility and appeal of Zilliqa's ecosystem. With exciting developments like the upcoming launch of the $FPS token for WEB3WAR in early 2024 and the anticipation surrounding the launch of The Winners Circle, we’re not just creating digital assets; we’re building communities and experiences.

‘Joining forces with 1ex Trading Board opens up new avenues for Zilliqa, bridging the gap between disparate blockchain economies and professional trading,’ says Zilliqa Group CEO Matt Dyer.

‘This partnership marks a significant step in broadening the exposure and usability of our platform, inviting a new wave of users to explore the diverse applications of blockchain technology - from GameFi to DeFi and everything in between - that comprise the Zilliqa ecosystem.’

For the Zilliqa community, this collaboration with 1ex Trading Board is an exciting development. It offers an opportunity for Zilliqa to showcase the potential of our blockchain projects to a new, professional audience and delivers a platform where the trading opportunities inherent with GameFi and Web3 applications can be leveraged in a trading environment that’s both advanced and user-friendly.

‘As we continue to push the boundaries of blockchain technology, partnerships like these play a crucial role,’ Dyer explains.

‘They are not just about expanding our reach; they are about enriching the blockchain space with innovative solutions that cater to a wide range of users, from gaming enthusiasts to professional traders.’

The recent introduction of EVM compatibility to Zilliqa aligns with this approach of maximising the accessibility and reach of solutions built on the Zilliqa network, cultivating an interoperable and user-friendly environment for users and traders alike.

‘EVM compatibility in Zilliqa introduces a new dimension of interoperability and integration, crucial for the sophisticated trading platforms we aspire to offer at 1ex,’ says Litvinov.

‘This functionality was a key factor in our decision to partner with Zilliqa, showcasing their commitment to a multi-chain future.’

Our partnership with 1ex will deliver a new, feature-rich trading experience for the Zilliqa community and introduce more users to the exciting projects being developed on the scalable and secure Zilliqa network. 

We invite you to join us on this journey as we explore this new chapter with 1ex Trading Board. Keep an eye out for further updates and join us in our upcoming AMA session on December 20 to dive deeper into what this partnership entails.

Decentralised finance (DeFi) is an important focus for the Zilliqa network, with Zilliqa CEO Matt Dyer recently laying out extensive plans to grow the DeFi ecosystem in 2023.

Important changes are coming to the Zilliqa network to make it easier for people to build and use DeFi applications on the blockchain, including the recent launch of EVM (Ethereum Virtual Machine) compatibility, which opens up the network to Solidity developers and EVM-based DeFi dApps as well as users of popular wallets like MetaMask.

One of the first steps in paving the way for the growth of DeFi apps on Zilliqa is the launch of Ionise - a new borrowing and lending platform that is the first EVM money market protocol deployed on the Zilliqa blockchain.

Ionise not only offers utility to DeFi users on the Zilliqa network, but also demonstrates how developers will easily be able to deploy or fork EVM DeFi applications to the blockchain.

To find out more about Ionise and how it paves the road for DeFi growth on Zilliqa, we spoke to Zilliqa Head of Product Anton Agafanov.

How Ionise works

Ionise is the first EVM dApp built on Zilliqa and is the foundation for an interoperable ecosystem of ecosystem apps built on both Scilla and Solidity.

Adding support for Solidity dApps on Zilliqa opens up the network for those who want to easily build or fork applications and take advantage of a nascent DeFi ecosystem. 

Ionise serves as a prime example of how EVM dApps can be deployed to the Zilliqa network and deliver real utility in the DeFi space.

“As a money market protocol built on Zilliqa EVM, Ionise paves the road for future DeFi deployments on Zilliqa,” Anton says.

“The team took one of the most successful lending protocols available, the Compound protocol, forked it, and deployed a few pieces of additional infrastructure to make it work on the Zilliqa network.”

Compound is an open-source decentralised lending protocol that has proven to be one of the most popular DeFi applications across multiple blockchains, and like many other EVM dApps can be, it has been forked and adapted to run on Zilliqa as Ionise.

Ionise will initially offer simple borrow-lending capabilities, although it has plans to expand its supported tokens in future.

The protocol launched with support for USDT and ZIL tokens, and token holders can use the lending functionality to create a small amount of leverage with the risk of liquidation.

Anton notes that the Ionise team is also considering implementing support for other tokens within the Zilliqa ecosystem like stZIL - the liquid staking token used by Avely Finance - and beyond like bridged ETH and BTC, which could add even more utility for users.

“A lending protocol gives you an ability to lend from one side and borrow from the other. For lending you get paid, for borrowing you pay a fee, both algorithmically calculated.” Anton explains.

“Ionise is looking to add stZIL once it is available to be integrated and the necessary conditions are met. This will immediately multiply the utility of stZIL and offer people much greater ability in terms of borrowing and lending.”

Ionise launches with relatively simple DeFi functionality and will expand as development progresses, but also demonstrates that EVM apps can easily be deployed on Zilliqa and there is a massive opportunity for DeFi growth with significant first-mover advantage for developers.

“Ionise shows that you can build a DeFi product using EVM. It will work and you can use it - the Ionise team has shown that in the simplest way possible,” Anton says.

Accelerating DeFi growth on Zilliqa with EVM

Anton explains that the Zilliqa infrastructure team wants to make it as easy as possible for DeFi developers and users to start building and adopting EVM DeFi applications on Zilliqa.

“We believe in DeFi as the future of finance. We believe in decentralisation and in the permissionless use of those products. We want to create products that have real utility behind them.”

“DeFi is also a crucial economic layer for all current and future products within the Zilliqa ecosystem, offering permissionless financial functions and creating added value.”

“The people in the ecosystem can create whatever they like using Zilliqa and nobody will stop them. It’s open source and you can use Scilla or Solidity to create whatever products you like. You can deliver value to users and extract revenue from them - this is all up to developers and product teams in the ecosystem,” he says.

When it comes to the state of DeFi on Zilliqa, Anton acknowledges that the ecosystem was behind others in terms of infrastructure and sees EVM compatibility as a major step towards gaining parity with the wider blockchain space.

“As the core Zilliqa team, we saw that Zilliqa was honestly behind other ecosystems in terms of DeFi. There were two problems - we had few basic products to build upon and there were a very small number of teams in the ecosystem engaged in building DeFi products.”

“That's why it was decided to pursue EVM compatibility, to increase the number of people that can actually write new code and deploy it or just fork DeFi apps and redeploy them on Zilliqa to be the first in the ecosystem and cater to the massive community,” he says.

This first-mover advantage is not to be underestimated, especially in a blockchain ecosystem with a large existing community and, until now, little established competition in the DeFi space.

This is the time to start building DeFi apps on Zilliqa to capture the demand for these tools, Anton says.

“If you are first in the ecosystem, you will likely get a major audience. If it brings real utility, people will come and use it.”

“Moreover, EVM support is expected to grow exponentially through integrations into existing multi-chain and cross-chain projects, ranging from wallets to protocols and infrastructure solutions.”

Supporting DeFi development

Anton adds that the Zilliqa core infrastructure team will be working to encourage deployment of Solidity dApps on the network and will aid projects as they take advantage of Zilliqa’s EVM compatibility.

“We will support those who build EVM DeFi apps on Zilliqa with whatever technical support they need to succeed.”

“We're also planning to support developers with hackathons around EVM dApps on Zilliqa, which will help raise visibility and aid people in deploying Solidity dApps on our network, which will include DeFi applications.”

To find out more about EVM compatibility on Zilliqa and how to get started building and deploying Solidity dApps on the network, read our blog post on using Truffle and Hardhat with Zilliqa.

If you’re a big fan of DeFi and are excited to be part of Zilliqa’s growth in this space, stay tuned to our socials for more announcements around Ionise and other EVM DeFi applications coming to the network.

Zilliqa Group recently announced a partnership with Racing League to build a Web3-powered loyalty programme that will redefine the fan experience in the world of horse racing.

Racing League is a premier horse racing competition in the United Kingdom that offers a fresh approach by introducing a team-based format, which promotes an exciting experience for supporters that encourages engagement around team rivalries and governance, jockey drafts, and more.

The Web3-enabled loyalty programme developed under this partnership will build on Racing League’s approachable format by offering fans tangible rewards for their engagement and allowing more people around the world to feel personally connected to their favourite teams.

By leveraging the utility of the secure and reliable Zilliqa blockchain, Racing League and Zilliqa Group will deliver a platform that allows fans to be rewarded for their support and engagement with unique incentives, from having a say in the running of their favourite team to having the opportunity to own a share of a race horse.

This revolutionary approach to fan loyalty is enabled by the integration of Web3 technology and forms a core part of Zilliqa Group’s strategy in building new and more effective connections between fans and their favourite teams or brands across sports, esports, entertainment, and beyond.

We spoke to Zilliqa’s Head of Business Development for Sports and Gaming, Tom Fleetham, to find out more about the vision to redefine fan loyalty with Web3 technology.

Building engagement within a $400-billion industry

Zilliqa Group’s partnership with Racing League brings a fresh approach to an industry that is growing significantly but which struggles to engage fans beyond the market for betting on races.

“Horse Racing is a massive $400-billion industry and unlike a lot of traditional sports it is actually growing, but most of that growth is driven by online betting and investment from the Middle East,” Tom explains.

“Up to one third of adults in the UK place a bet on the Grand National every year and most of them never go to an actual event. That is crazy engagement but only around a very one-dimensional aspect of the sport.”

The solution to expand this engagement is a combination of Racing League’s innovative format and the power of the Zilliqa network to deliver Web3 features within a new type of loyalty programme.

“Racing League's whole mission is around creating a more interactive experience for horse racing fans, and so that's why they've brought in team-based competition. Teams mean that you get rivalry, drafts for jockeys and horses, merchandise, and IP that is meaningful.”

“And crucially, if you've got teams, you've got loyalty. And that's where we come in,” Tom says.

“People that join this fan loyalty programme are going to be able to own a share in their favourite horses, vote on important team decisions, and get access to exclusive experiences as well as discounts on tickets and merchandise.”

In the long term, this initiative will also be expanded to use Racing League IP in a fantasy racing game that will reward fans for their racing expertise.

“The overall vision is about providing loads of interactive experiences for fans in horse racing that take it beyond just placing a bet, and Web3 can be a big catalyst for that,” Tom says.

“Because the loyalty programme is on the blockchain, we can open up this ecosystem and invite other third parties that are in the horse racing world to come and build with us and be part of the loyalty ecosystem. That's a real key differentiator.”

“We can also give fans much more of a say over how the Racing League is run through the governance mechanism, and we are going to reward their loyalty for the first time. Fans that engage with the programme will receive rewards that are both exclusive and tangible, so they will have a real-world value.”

Powering a Web3 fan loyalty ecosystem

Beyond the partnership with Racing League, Zilliqa Group has a number of other active partnerships which are already beginning to benefit from the integration of Web3 into their fan loyalty initiatives.

A recent example of this overarching vision is the company’s partnership with MAD Lions, which launched its new Web-enabled loyalty programme, The Pride, powered by the Zilliqa network.

The Pride has already shown great success in building engagement and onboarding active participants with tangible incentives.

“With all of our loyalty schemes, the Web3 part can incentivise engagement, because if you know you've got a tangible reward on the other side of an interaction, you're more likely to stay engaged, and The Pride shows that,” Tom says.

“We have seen thousands of people sign up from 56 different nationalities, which is pretty amazing. But 65% of those users are what we are calling super-active users because they keep coming back and completing multiple quests. That’s really impressive engagement created by the Web3 element and the opportunity to earn tangible rewards.”

Now that these programmes are beginning to roll out, they can open the door to a wider Web3-powered ecosystem of fan loyalty initiatives, with partners able to build on existing platforms and create more opportunities for both fans and brands to benefit from a community of engaged users.

“This all feeds into the same strategy and our vision for how Web3 can improve loyalty,” Tom says.

“What sports and entertainment brands, including esports, have done traditionally is to outsource their communities to social media and try to sell sponsorships based on how many followers they have on those platforms. But they don't know who is following them and why they are following them. They can't reach out to those followers very easily.”

“The penny is starting to drop in the sports and entertainment space in general, and these brands are realising they need to build an actual community they can engage with. And so we are seeing a big trend of these brands implementing these kinds of rewards programmes,” he adds. 

“The fact that you can incentivise engagement a lot more effectively with Web3 supercharges the strategy - you can get a higher percentage of your fan base to sign up and be engaged with your brand.”

“Integrating Web3 with a loyalty programme gives you an engaged community, not just a large number of followers.”

The opportunities for Web3 to deliver tangible rewards and powerful incentives for engagement are myriad and can be tailored to be effective across a range of industries, from football to air travel.

“We're just scratching the surface with Web3 and entertainment, and I think we can use the technology to build something that's truly meaningful for both brands and fans - that's what we're interested in,” Tom says.

He adds that although crypto natives will have the chance to dive into the other exciting aspects of the Zilliqa network, the powerful features of Web3 should include everyone and deliver their benefits without requiring users to learn about its underlying technology.

“The goal is not to take our loyalty programme customers and turn them into blockchain natives. If they end up interacting with dApps on the network, then great, but the goal is to demonstrate how blockchain technology can be used in the background to improve the experience for fans across the world.”

October was a busy and important month for both Zilliqa Group and the whole ecosystem. We saw a number of exciting new partnerships and announcements that touched on everything from compliance-focussed enterprise solutions to DeFi platforms built on Zilliqa EVM.

I am thrilled to see the progress being made across the ecosystem, from Zilliqa Group expanding its partnerships and capabilities to disrupt existing industries with powerful Web3 solutions, to the important proposals passed through the governance process that mark a major milestone on the road to Zilliqa 2.0.

I would like to thank the Zilliqa community for their continued support and engagement as we continue our journey towards Zilliqa 2.0 and a more flexible, efficient network. From gZIL holders participating in governance to ZIL holders trying out the exciting new DeFi platforms launching on the network, it is great to see this sustained and productive activity throughout the Zilliqa ecosystem.

From a Group perspective, our partnership with Racing League was a major highlight of the past month, as it demonstrates the ability for the Zilliqa network to power exciting new use cases in the loyalty space as well as Zilliqa Group’s strategy to build useful and productive partnerships within a range of verticals.

We also announced a new collaboration with ChainUp this month, which will bolster our ability to offer Web3 infrastructure services to businesses by ensuring our solutions are compliant and robust enough to satisfy the demands of new and existing partners.

As we approach the end of the year, keep an eye out for more important announcements and updates to the network. We are not only shaping the future of the Zilliqa network but that of the entire Web3 space, and I am excited to share what comes next as we approach the end of 2023.

- Matt DyerZilliqa Group CEO

Check out the highlights from the Zilliqa ecosystem for October 2023 below:

Partnership with Racing League on fan engagement

On October 24th, Zilliqa Group announced an exciting partnership with Racing League to deliver a new fan loyalty programme with unique and powerful features delivered by the Zilliqa blockchain.

Racing League is a competition based in the UK that offers a team-based approach to horse racing, creating exciting new ways for old fans to show their love for their favourite sports and opening the gates to new fans through an accessible and exciting competition format.

Its partnership with Zilliqa Group will see Racing League use the Zilliqa network to level up its fan engagement, offering exclusive rewards and exciting ways to interact with the competition, from participating in governance to competing in prediction games to earn tangible rewards.

This partnership is a major step in the Group’s broader strategy to revolutionise the fan loyalty sector with disruptive blockchain-powered solutions, expanding its range of existing partnerships across the sports, gaming, and entertainment industries.

Read more about Zilliqa Group’s partnership with Racing League.

Boosting Web3 infrastructure offerings with ChainUp

The last month saw another major partnership announcement for Zilliqa Group, this time with ChainUp - an enterprise blockchain solutions provider based in Singapore.

This collaboration will see ChainUp become an industrial-grade partner for Zilliqa Group, helping to boost its enterprise Web3 infrastructure offerings through the integration of compliance-focussed blockchain solutions.

As part of this partnership, ChainUp will also run a Staked Seed Node (SSN) on the Zilliqa network, playing a crucial supporting role as an archival node on the blockchain that provides services to end-users.

Thanks to this partnership, Zilliqa Group will be in a prime position to expand its Web3 infrastructure offerings to new and existing partners by offering efficient, reliable, and compliant blockchain-based solutions.

Read more about Zilliqa Group’s partnership with ChainUp.

Important proposals passed as we approach Zilliqa 2.0

As the Zilliqa infrastructure team works continuously to implement network upgrades on the road to Zilliqa 2.0, the community has stepped up and voted to pass a number of important proposals that are necessary for this transition.

In October, a number of proposals were successfully passed through Zilliqa’s decentralised governance system, with gZIL holders voting overwhelmingly in favour of the changes.

These include proposed changes to the role Staked Seed Nodes (SSNs) play on the network as we migrate to Proof-of-Stake for Zilliqa 2.0.

Other proposals were related to mining rewards and sharding, with proposals being passed that introduce active reward control for miners and implement desharding to improve efficiency before an improved sharding system is introduced.

Active reward control is aimed at improving the cost-efficiency of operating a mining node on the Zilliqa network and reducing inflation, while desharding is an important step to improve the efficiency of the overall network before a new sharding architecture is introduced as part of the shift to Zilliqa 2.0.

To find out more about these proposals and have your say on other upcoming changes to the Zilliqa network, visit the Zilliqa governance forum.

FUS1ON becomes the first Web3 gaming platform on Microsoft Store

Roll1ng Thund3rz has continued to build out its Web3 entertainment ecosystem at an impressive pace, delivering regular updates to its free-to-play shooter, WEB3WAR, and its FUS1ON Gaming Hub platform.

Version 2.1 of WEB3WAR officially launched in the past month, bringing exciting new features to the game, including a new event map, post-game rewards screen, progression-tied cosmetics, and much more.

Read the full release notes for WEB3WAR v2.1 here.

The company has also made significant progress on its unified FUS1ON Gaming Hub software and has officially launched its marketplace for tokens and in-game items, MARK3T, as a standalone platform available through a web browser.

This means that users can now interact with the FUS1ON MARK3T from their preferred browser and device, including desktop computers, laptops, tablets, or smartphones.

In the same vein of improving accessibility and growing its audience, the biggest announcement from Roll1ng Thund3rz in the last month was the official launch of the FUS1ON Gaming Hub on the Microsoft Store.

This makes FUS1ON the first-ever Web3 gaming platform available on the Microsoft Store and marks a pivotal moment in the mission to bring Web3-powered gaming to mainstream audiences.

Technical updates, DeFi growth, and ecosystem news

The Zilliqa ecosystem saw exceptional growth in the last month, with a number of exciting new platforms being launched and existing projects continuing to improve on their offerings.

Technical updates to developer tools have also proceeded apace, with the Scilla plugin for Hardhat continuing to receive updates that make it easier to deploy EVM-compatible smart contracts that interact with existing Scilla code.

One of the biggest announcements in the Zilliqa ecosystem in October was the launch of Plunderswap, the first DEX built on the Zilliqa EVM network, making it compatible with popular wallets like MetaMask.

To learn more about the exciting opportunities for DeFi growth on Zilliqa this launch brings, check out our full AMA with the Plunderswap team.

LunarCrush expanded their social insights platform this month, adding 30 new categories for users to explore, and IgniteDAO expanded its instant unstaking feature to include support for all Staked Seed Nodes (SSNs), allowing users to pay a small fee to instantly access their unstaked ZIL.

It was a busy October in terms of news and events for Zilliqa, with the recent strategic alliance between Zilliqa Group and Google Cloud being highlighted in an interview with Google Cloud Head of Web3 James Tromans by Blockhead.

Zilliqa Head of Business Development for Sports and Gaming, Tom Fleetham, also appeared on the BullCaster talk show this past month, engaging in an insightful discussion around blockchain’s role in fan engagement.

The team was also present at ESI London 2023, where Zilliqa Brand and Partnership Manager Georgia Todd joined MAD Lions on stage to explore the new age of loyalty programmes enabled by Web3 technology.

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