What is ZetaChain (ZETA)?

01 Feb What is ZetaChain (ZETA)?

Posted at 15:55h in Education, Token by admin

ZetaChain is a Layer 1 (L1) blockchain and smart contract platform, boasting an inherent ability to connect with all existing blockchains, from mainnet layers like Ethereum to non-smart contract chains such as Bitcoin and Dogecoin. This omni-chain capability allows ZetaChain to manage assets, data, and liquidity across various networks, regardless of whether they have native smart contract functionalities.

The rapid proliferation of blockchains and layers has led to a fragmented crypto landscape, posing challenges for users and developers in terms of complexity, security risks, and operational difficulties. ZetaChain addresses this fragmentation by offering a single, streamlined point of access to every blockchain ecosystem, thereby reducing complexity and security risks.

ZetaChain (ZETA)

ZetaChain is a versatile blockchain platform that stands out for its omnichain capabilities, enabling seamless interaction and functionality across various Web3 blockchain networks. Its approach addresses the fragmented and siloed nature of the current crypto landscape, offering a unified and secure platform for both developers and users to engage with the entire crypto ecosystem.

At the heart of ZetaChain’s innovation are its omni-chain smart contracts. These contracts are designed to interact across multiple chains, providing a unified, seamless, and secure interface to the entire crypto ecosystem. Whether it’s Ethereum, Bitcoin, Cosmos, Tron, or others, ZetaChain’s smart contracts can orchestrate data and funds across these networks from a single contract, simplifying the process for developers and users alike.

ZetaChain operates through a network of nodes that observe and agree on events occurring on external chains. These nodes then relay information to ZetaChain’s omnichain smart contracts, which act as a single source of truth, maintaining the state of assets and data across connected chains. The platform employs a chain-agnostic message passing system, enabling existing smart contracts to transmit data and value across different chains with ease.

Built on the Cosmos SDK and Tendermint consensus, ZetaChain connects to external blockchains and layers in a decentralised, transparent, and efficient manner. Its architecture includes validators, observers, and signers, each playing a critical role in maintaining the network’s integrity and functionality. ZetaChain security is further reinforced by a leaderless Threshold Signature Scheme (TSS), ensuring no single node or individual can access the complete private key, thereby enhancing security and transparency.

How ZetaChain Works

Zetachain introduces a transformative approach to blockchain interoperability, presenting itself as a chain-agnostic, public omni-chain blockchain. It aims to serve as the foundational layer of the decentralised internet, seamlessly connecting various blockchains including Ethereum, Bitcoin, and emerging networks, solving the issue of fragmentation prevalent in the current Web3 multi-chain landscape.

ZetaChain offers a unified but decentralised execution environment, similar to what centralised exchanges (CEXs) provide, but in a more open and programmable manner. This environment allows not just for exchange and transfer applications, but also for a broad spectrum of applications across different verticals such as social, consumer, gaming, Decentralised Finance (DeFi), collectibles, and more.

ZetaChain is designed to enable the convergence of multiple blockchains, thus offering a solution to the fragmentation and complexity that arise with the continuous emergence of new chains and layers. It provides a single layer where all blockchains can interact, facilitating cross-chain transactions and smart contract operations.

The platform’s native omni-chain smart contracts allow for real, native cross-blockchain transactions. These contracts offer developers the flexibility to build Decentralised Applications (DApps) that can orchestrate data and value across various chains from a single contract, simplifying cross-chain interactions.

Zetachain’s programmability extends to Bitcoin, a chain traditionally not designed for smart contracts. Developers can now create contracts controlling native Bitcoin, enabling interaction between Bitcoin and tokens/data from other chains. This integration allows for a variety of new applications and use cases involving Bitcoin.

Zetachain is powered by the ZETA token, which is used for various functions like securing the PoS network, paying transaction fees, and participating in governance.

ZetaChain is complemented by ZetaHub, a comprehensive platform for users to engage with the blockchain and ecosystem. The ZetaChain ecosystem also has a robust community, numerous partnerships, and an active grants program for omnichain DApp builders.

Zetachain’s future development includes a core roadmap focusing on new chain connections, innovative interactions with Bitcoin, and the maintenance of open-source libraries. The platform aims to expand the possibilities for crypto applications across all blockchains, particularly in areas like omni-chain DeFi primitives, Bitcoin collateralisation, native token staking, and social/gaming/identity applications.

Why is ZetaChain Unique?

ZetaChain’s unique proposition lies in its ability to bridge the gaps between various blockchain ecosystems and as a key player in advancing the vision of a more interconnected and accessible blockchain-based internet, or Web3.

ZetaChain’s mission is to bring crypto back to its decentralised roots, providing a platform that is open and accessible to all, and enabling a world where developers and users can seamlessly interact with any blockchain.

What is the ZetaChain Ecosystem?

The ZetaChain ecosystem represents a comprehensive and diverse network of partnerships, applications, and support systems, fostering an environment ripe for innovation and growth in the Web3 space.

ZetaChain has established a wide array of partnerships, numbering over 200, with various entities across the blockchain infrastructure and decentralised applications (dApps) sectors. These partnerships include essential service providers like validators, RPC (Remote Procedure Call) services, API (Application Programming Interface) providers, oracles, wallet services, subgraphs, explorers, and more. This network of collaborations is aimed at ensuring that the Zetachain platform is robust, versatile, and well-supported for its launch and beyond.

ZetaChain has seen the deployment of around 46,000 dApp contracts on its testnet. These applications span a range of domains, including DeFi, gaming, digital identity, social media, DAO (Decentralised Autonomous Organization) tooling, and cross-chain non-fungible tokens (NFTs). This variety indicates Zetachain’s capability to support a multitude of use cases and applications, making it a versatile platform for developers.

Zetachain has instituted a $5 million grant program to support the development of omni-chain dApps that utilise its cross-chain functionality. This program is a significant investment in the developer community, encouraging the creation of innovative applications that leverage Zetachain’s unique features. Such initiatives can significantly spur the growth and diversity of applications within the ZetaChain ecosystem.

ZetaChain actively engages with the developer community such as sponsoring major industry hackathons, collaborating with organisations like StackUp to bolster developer education, and providing dedicated support through its Discord Dev Zone. Programs like Dev Office Hours offer personalised advisory support, underlining Zetachain’s commitment to nurturing a vibrant and well-supported developer community.

What is the ZETA Token?

The ZETA token is an integral component of the ZetaChain ecosystem, serving multiple critical functions across the platform. ZETA tokens play a central role in ZetaChain’s PoS consensus mechanism. Validators secure and maintain the network, and in return, they receive block rewards and transaction fees paid in ZETA. This incentivises them to act in the network’s best interest. ZETA is also subject to a slashing mechanism, ensuring validators adhere to the network protocols.

ZETA is used to pay for transaction fees (or gas) on the ZetaChain network. This includes transactions within ZetaChain’s EVM (Ethereum Virtual Machine) and cross-chain transactions. The use of ZETA for transaction fees helps protect the network from spam and DDoS attacks.

In ZetaChain’s cross-chain messaging system, ZETA is used to facilitate the transfer of value between different blockchains. When a message is sent across chains, ZETA is burned on the source chain and minted on the destination chain, thereby enabling seamless value transfer without creating new wrapped assets.

ZETA, alongside other external chain assets, forms core liquidity pools that allow users to transact on ZetaChain and between connected chains. Liquidity providers in these pools are rewarded with trading fees and other incentives, thus fostering liquidity and enabling efficient cross-chain transactions.
ZETA token holders have the right to participate in the governance of the ZetaChain network. They can propose changes, vote on various network and policy upgrades, thereby influencing the direction and development of the Zetachain ecosystem.

ZetaChain Tokenomics

The initial total supply of ZETA is capped at 2.1 billion tokens. The protocol envisions transitioning to a target inflation rate of approximately 2.5% per year after the first four years, based on the current circulating supply. This approach aims to sustain the network over the long term.

ZetaChain’s governance model permits modifications in the monetary policy and other network aspects, adapting to the evolving needs of the ecosystem. ZETA is not just a medium for transaction fees but is also burned over time through mechanisms like EIP 1559, leading to a potential decrease in total supply. It plays a critical role in the protocol’s core pools for exchanging ZRC-20 gas assets, required for executing outbound transactions to external chains.

How to buy ZETA with crypto

1. Log in to your Bitfinex account or sign up to create one.

2. Go to the Deposit page.

3. In the Cryptocurrencies section, choose the crypto you plan to buy ZETA with and generate a deposit address on the Exchange wallet.

4. Send the crypto to the generated deposit address.

5. Once the funds arrive in your wallet, you can trade them for ZETA. Learn how to trade on Bitfinex here.

How to buy ZETA with fiat

1. Log in to your Bitfinex account or sign up to create one.

2. You need to get full verification to be able to deposit fiat to your Bitfinex account. Learn about different verification levels here.

3. On the Deposit page, under the Bank Wire menu, choose the fiat currency of your deposit. There’s a minimum amount for fiat deposits on Bitfinex; learn more here.

4. Check your Bitfinex registered email for the wire details.

5. Send the funds.

6. Once the funds arrive in your wallet, you can use them to buy ZETA.

Also, we have Bitfinex on mobile, so you can easily buy ZETA currency while on-the-go.

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