Tezos $1 Billion Blockchain Network Gears Up For Security With Bakers As Validators
For the Tezos network, bakers are starting to get busy in the proverbial kitchen. If you come from the world of Bitcoin, Tezos Bakers are akin to miners which are validators of the blockchain and its native transactions.
Since its inception, Tezos has raised nearly a quarter of a billion dollars, but it's done so with a rough start and lots of hiccups along the way. Hitting almost every speed bump a cryptocurrency can, Tezos is finally getting the recognition they deserve. Investors recognize the token now since they crossed the $1 Billion mark in value and have been placed in the top 20 of all blockchain technologies by the total market cap. As for the speed bumps, they have gone while Tezos cruises on to victory.
Watching the growth of the company is as comfortable as looking at the numbers. The more tokens staked and validated, the better for network stabilization. Participation by the community is another factor, one that proves the support users have for a given token. Things are looking suitable for bakers right now, with more than one hundred operating for the system.
All of the validation happens through nodes the Tezos Foundation is responsible for, showing the company takes care of their own. Every three days starts a new cycle, meaning they are currently in the depths of their seventh since the operation was launched a few weeks back.
Making a solid decision on the future of Tezos isn't possible yet, it's too early to tell how they will do for the long haul. But as far as startups go, they are doing better than average with new services on the way to improving the system. Starting a baker takes some technical understanding and about 10,000 of the company's XTZ tokens. That means a person needs about $15,000 to get started as a holder, but the promise of robust ROI should make the investment worth it.
For Tezos token holders who are under the $15,000 limit for the bakers benchmark, the protocol enables users to earn rewards by delegating their coins to a service. As of now, there are three dozen or so companies who are participating in the project.
Can Centralization Occur?
Company nodes are running at less than 50 percent of the total network, and just two bakers represent 20% of staked XTZ. Delays in the system make it take a bit longer for tokens to operate after the user delegates them. The process was designed like that specifically to help users see ahead, down several cycles so they can anticipate a loss of market capital for more extensive services.
Of course, the foundation always comes first, while using Obsidian Systems software to ensure market protection while baking. More software is being developed to make the platform more user-friendly. As of now, the system is only for the most technical users. But with the new list of projects in development to improve user services, more people will be able to delegate tokens on the road ahead.
Delegating tokens isn't as easy as a click of a button. Users must understand proxies, nodes and command line operating systems. It's a challenging game for new users, but the company is providing services to help people gain an understanding of how it works.
Also, Bakers are running on a worldwide scale, with countries like Switzerland's Cryptium Labs in possession of 47 rolls in its node.
Some important points made regarded running bakers:
One: Users should start a separate legal entity before running bakers. Users who don't from the start are more likely to quit when times are tough.
Two: The system still requires human logic, not every process is automated – although tools are in development to find solutions for independent work.
Three: Software upgrades regularly happen, sometimes slowing down operations at critical moments. Timing on updates is hard to predict and could potentially pose security threats to the network.
It comes down to a challenge, running a baker takes a lot of effort, knowledge, and understanding. Running one isn't as easy as setting it up and letting it go. There is still a lot of room for improvement on the system, but as far as Tezos is concerned, they are happy with their launch.
How could Tezos improve their operations? Leave your answers below in the comments.