- Zilliqa plans to replace its standalone blockchain model with an Ethereum Layer 2.
- Verified institutional wallets will gain access first, with LTIN operating the sequencer.
- ZIL remains the network token, and holders need not take immediate action.
Zilliqa plans to move from an independent blockchain to an Ethereum Layer 2 serving regulated financial institutions. Announced publicly on November 5, the transition follows weak adoption, tighter funding and rising security costs. The project will retain ZIL as its token, while introducing identity checks that determine which wallets can transact on the planned network.
Zilliqa Plans Verified Access and Ethereum Settlement
The project website describes a network that posts transaction batches to Ethereum while restricting access to verified participants. Institutions will enter first, with individuals and other users potentially joining later.
Verification will use verifiable Legal Entity Identifiers, or vLEIs. These credentials identify a legal entity and establish who is authorized to act for it. Only wallets approved through verified credentials will transact.
Zilliqa has assigned the sequencer role to the Liechtenstein Trust Integrity Network, known as LTIN. A sequencer orders transactions and groups them for settlement.
State-owned Telecom Liechtenstein holds 51% of LTIN, according to the project. LTIN is seeking accreditation as a qualified vLEI issuer; that process should not be confused with completed approval.
The proposed design combines public Ethereum settlement with restricted participation. Identity checks may support institutional requirements, but they do not establish blanket regulatory approval for every financial activity.
Token Holders Await Migration Details and Network Launch
Zilliqa said its standalone network had not attracted enough usage or ecosystem growth to sustain its operating model. Recent security incidents further exposed the cost of maintaining an independent chain.
The project has existed for roughly nine years, but its mainnet launched in January 2019. Its announcement therefore describes a strategic transition, rather than confirming that the existing blockchain has already shut down.
ZIL holders do not need to take immediate action. Zilliqa says it will publish technical instructions before changes affect holders, exchanges or stakers.
The migration schedule and detailed Layer 2 architecture remain outstanding. The project’s token guidance says any migration or swap instructions will appear on its official website first.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
