Hassan Maishera
On Monday, the Zilliqa team announced via X that it has been made aware of a security incident involving one of its exchange partners, in which ZIL was stolen from a cold wallet.
Zilliqa added that the incident is under active investigation, and they are working with the relevant parties to establish the root cause and full scope.
As a precaution, all exchanges have been notified and asked to temporarily pause ZIL deposits and withdrawals to prevent the stolen funds from being moved or sold through centralised platforms.
In a separate post, Zilliqa revealed that it had found no evidence that the incident was caused by the exchange’s wallet management or operational processes.
The investigation has instead identified a technical issue affecting transaction signing in a specific set of legacy ZIL1 wallets. The team is still verifying the precise root cause before publishing a detailed technical report.
Zilliqa (ZIL) is one of the world’s first blockchains being built on a sharded architecture and features smart contracts written in the platform’s proprietary programming language: Scilla.
It is a public, permissionless blockchain that is designed to offer high throughput with the ability to complete thousands of transactions per second. It seeks to solve the issue of blockchain scalability and speed by employing sharding as a second-layer scaling solution. The platform is home to many decentralized applications, and as of October 2020, it also allows for staking and yield farming.
Zilliqa claims to be the world's first public blockchain to rely entirely on a sharded network. This allows it to achieve high throughput and a high rate of transactions per second, which it says solves the scalability issue. Because each shard processes transactions individually, as the network grows and the number of shards increases, the number of transactions that can be processed per second also increases. As well, records are immediately added to the Zilliqa blockchain after being processed, meaning that no additional time for confirmation is required.
Zilliqa seeks to become the blockchain of choice for large-scale enterprise use, including among the advertising, gaming, entertainment, and financial services and payments industries. In its 2018 position paper, its team states that the platform "aims to rival traditional centralized payment methods such as VISA and MasterCard."
ZIL is trading at $0.002444, down 6.4% in the last 24 hours.
