Updated: Dec 20, 2019
Tezos saw one of the most popular launches in the history of cryptocurrency, primarily because of the governance flexibility it incorporated within its structure. It is a decentralized ledger, which makes use of the blockchain network by linking to a digital token called a Tez (XTZ). Tezos aims to improve upon the smart contract concept, incorporating chain governance, and allowing the participants to control and upgrade network rules.
This guide will highlight the uses of Tezos, the team behind the concept, the way its system works, uses and future applications.
What Is Tezos Designed For?
Tezos is an evolving smart contract platform for building decentralized applications (Dapps), by linking its blockchain network with its native digital token called Tez (XTZ), which works a lot like Ethereum. It was created to offer both code correctness and security for assets, and other high valued projects, through its smart contract language, Michelson.
Tezos was designed to improve upon the smart contract concept by incorporating on-chain governance, allowing the participants to control and upgrade network rules. The purpose of Michelson is to allow formal verification through security restriction compliances and methodology, a practice followed in numerous critical environments like nuclear industries and aerospace.
The creators followed the machinations of Bitcoin and developed Tezos as an answer to the former’s inflexibility.
Who Is The Team Behind Tezos?
Tezos was the pet project of the couple Arthur Breitman and Kathleen Breitman. They were later joined by Johann Gevers as the Tezos foundation president.
Arthur, before developing Tezos published a series of papers, which became famous for outlining Bitcoin’s shortcomings, and for accurately anticipating Ethereum’s scalability issues. Tezos was his answer to these problems and the idea of ingrained flexibility in Tezos, was received with such enthusiasm that the initial coin offering of Tezos was estimated at $232 million, the biggest and largest to date.
Johann Gevers was the co-founder of Monetas; a digital payments startup that was successful in replacing a financial banking system, leaving billions bankless.
How Does Tezos Work?
Tezos works a lot like Ethereum, providing an open-source decentralized platform, using a blockchain network that affords security and code correctness to high-value assets and projects. Its entire concept is based on the fact that all stakeholders can participate in its governance. This blockchain can further be broken down into - Network Protocol, Transaction Protocol, and Consensus Protocol.
The native coin Tez (XTZ) works on the “liquid proof of stake system”, requiring the users to stake a requisite amount of XTZ in a process called ‘baking’. This allows the user to participate and vote in the blockchain consensus for better predictability, which results in joint decision making.
Baking affords flexibility in the blockchain network of Tezos. The inflation defined by protocol then determines the block rewards. To ensure honesty and transparency, the bakers need to post a security deposit for every block posted or endorsed in the Tezos proof-of-stake system. This deposit is forfeited if any wrongdoing is detected.
What Are the Current and Future Applications of Tezos?
Tezos was recently launched in September 2018 and is still in the initial phases of its operation. Its primarily use lies in facilitating the development of Dapps.
Some of the recent applications of Tezos are:
● Tezsure: This is an insurance marketplace based on the decentralized platform provided by Tezos.
● Legicash: This is another blockchain technology created on Tezoswhich, which incorporates formal verification to adjust the security and scalability of the smart contracts being used.
● MoneyTrack: A directed Money program that uses Tezos to ensure trusted, secure and verified management of its transactions.
● Tokensoft: It is a security token platform managing the issuance of tokens. It uses Tezos to provide secure custody, familiarity and upgradability in its management platform.
● Kalhatti: This platform delivers global assets directly to the device, intended by using the Tezos blockchain protocols to ensure high-end security.
Besides these, a project led by Inria is also underway, which will formally verify the properties of smart contracts and build tooling on its basis. Also, Tezos is currently partnering with Satoshi Treasure in a game, which invites users to solve technical problems and challenging puzzles, in a bid to win a 1 million XTZ.
TEZZET, a lightweight, fast, secure and efficient wallet, written in Java language for Android Mobile, was developed on Tezos.
Tezos already has over a thousand new developers in 2019. Banco BTG Pactual S.A. (BTG Pactual) has plans to sign a deal of over $1bn security token offerings (STO) into the Tezos platform. Also, the Cryptium Labs team continues to publish Tezos related content and develops baking related tools.
Tezos is built as the Breitman’s answer to the ingrained inflexibility of Bitcoin, and the subsequent shortcomings of Ethereum. It aspires to provide security and a decentralized working platform for cooperative undertakings, on a grand scale in the future. In this respect, Tezos has been very well received and its future looks very promising, with the potential to become Ethereum’s nemesis.