Zilliqa, the blockchain platform known for pioneering sharding in public blockchains, has officially completed its transition from Zilliqa 1.0 to Zilliqa 2.0. This revamp is aimed at future-proofing the Layer 1 network for institutional, regulatory, and developer-driven adoption.
The upgrade marks a defining milestone in the project’s roadmap, introducing a modular architecture, Ethereum Virtual Machine (EVM) compatibility, and support for tokenized real-world assets and compliance-driven DeFi protocols.
“We’re building the blockchain institutions can trust”, said Alexander Zahnd, interim CEO of Zilliqa. “The next era of blockchain won’t be built on hype. It’ll be built on trust, transparency, and technical excellence.”
From Sharding Pioneer to Institutional-Grade Infrastructure
Zilliqa was the first public blockchain to implement sharding in 2019, a breakthrough that enabled scalable throughput well ahead of Ethereum’s rollouts. Since then, the platform has processed over 50 million transactions and facilitated hundreds of decentralized applications (dApps), from gaming to finance.
However, the fast-evolving demands of web3 — particularly around regulation, composability, and enterprise use — have pushed many Layer 1s to adapt. Zilliqa 2.0 is the project’s answer to that shift.
What’s New in Zilliqa 2.0?
At its core, Zilliqa 2.0 introduces six foundational pillars:
- EVM Compatibility: Developers can now deploy Ethereum-native dApps on Zilliqa with full tooling support, eliminating the need to learn a new programming environment.
- Modern Proof-of-Stake Consensus: Replaces the earlier consensus system, improving energy efficiency and validator scalability.
- Customizable x-Shards: Allow for application-specific environments, ideal for modular design and regulated use cases.
- Cross-Chain Communication: Enables interoperability with other blockchains, with integrations like deBridge enabling native USDC transfers.
- Light Client Support: Critical for mobile and low-bandwidth use cases.
- Sustainable Tokenomics: A reworked economic model designed for long-term ecosystem health.
The upgrade also introduces a streamlined staking model that rewards early adopters transitioning from Zilliqa 1.0. Validators saw significant performance improvements during the six-month “Aventurine” proto-mainnet phase, which processed over 7.5 million blocks and completed 15 client upgrades across 21 external validator nodes.
Developer and Enterprise Momentum
Zilliqa’s upgrade is not just technical — it’s strategic. As part of its institutional-ready positioning, the platform has secured partnerships with LTIN and deBridge. These partnerships extend its reach into regulated finance and cross-chain liquidity.
Developers, meanwhile, benefit from new tooling and smart account capabilities scheduled in the roadmap. These include zero-knowledge (ZK) privacy layers for compliance-driven selective disclosure and verifiable credentials — a nod to growing demand in identity tech and GDPR-aligned systems.
Projects currently building on Zilliqa 2.0 include regulated DeFi protocols, asset tokenization, digital identity solutions, and fintech infrastructure. This indicates its shift from a high-speed Layer 1 to a real-world blockchain solution.
Industry Context: A Race Toward Compliance-Ready Chains
Zilliqa’s move comes as the blockchain industry pivots towards regulation and institutional trust. Competitors like Avalanche, Polygon, and NEAR have all been rolling out modular or app-chain offerings to meet compliance and scalability demands.
Zilliqa’s EVM support places it squarely in Ethereum’s broader orbit, aiming to absorb developer mindshare from Solidity-based builders. Combined with native tokenomics and a faster finality layer, the platform positions itself as a high-performance alternative for enterprises not looking to compromise between speed, security, and regulatory alignment.
“Zilliqa is now institution-ready and developer-friendly,” added Zahnd. “We’ve rebuilt the core to make sure we’re not just fast — we’re also open, composable and built for real-world impact.”
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Image Credits: Zilliqa