Zilliqa plans to move its network onto Ethereum as a Layer 2 for regulated institutions, a shift the project says responds to adoption and operating challenges on its standalone chain.
Zilliqa announced the plan Nov. 5. The proposed network, called the Zilliqa Institutional Layer, would use identity-based access in a permissioned market. The project says the Zilliqa (ZIL) token will remain, and holders need not make an immediate change.
Zilliqa cited insufficient use and ecosystem growth, along with drying funding and liquidity for standalone Layer 1 networks. It also said recent hacks underscored the cost of securing and running an independent chain.
The project cites Ethereum’s security, liquidity and institutional reach as advantages of the proposed structure. Its site identifies regulated institutions as the first intended users, with individuals and agents considered for later access.
Zilliqa says it will publish technical details about the transition before making changes. It has not announced a date for those details.
