Tezos is a decentralized blockchain that promises to create a new digital commonwealth. Read our review today to find out how Tezos works.
What Is Tezos?
Tezos is a secure, future-proof smart contract blockchain with a built-in consensus mechanism. Using that consensus mechanism, Tezos wants to establish a “new digital commonwealth”.
The goal of Tezos is simple: the platform can incorporate new innovations over time without risking hard forks that split the market.
Tezos is its own blockchain, developed from the ground up. It’s not based on any other blockchain. The developer didn’t just fork bitcoin or Ethereum and add a layer over top.
One of the advantages of the Tezos blockchain is that it relies on a less power-hungry algorithm. The algorithm is less computationally intensive and less power-consuming while still using a reliable proof-of-state consensus algorithm.
Tezos is currently preparing for its long-awaited ICO. The ICO is scheduled to take place on July 1, 2017. During the ICO, investors will be able to buy TEZ tokens. the ICO will last until July 14.
The ultimate goal of Tezos is to build a blockchain technology that works better than bitcoin and Ethereum. It wants to give users financial incentives for maintaining consensus on their ledgers. No blockchain has an on-chain mechanism that rewards development. Tezos wants to be that blockchain.
How Does Tezos Work?
Tezos works in a similar way to other blockchains. The key innovation here is how new additions are added to the blockchain. Here’s how that works:
When a developer proposes a protocol upgrade, that developer can attach an invoice to be paid out to their address upon approval and inclusion of their upgrade. This approach provides a strong incentive for participation in the Tezos core development while also decentralizing the maintenance of the network.
Developers receive tokens in compensation. Those tokens have immediate value. That means developers don’t need to seek corporate sponsorship, foundation salaries, or work on internet fame alone.
Tezos also uses formal proofs to mathematically verify that key properties are upheld over time. Through this method, Tezos can add new technical innovations quickly while also enforcing a type of constitutionalism.
Stakeholders can coordinate projects on-chain. Plus, the Tezos blockchain allows for the creation of bounties – like when specific features need to be implemented, or specific bugs need to be eliminated.
What Makes Tezos Different From Other Blockchains?
Tezos is marketing itself as an alternative to other blockchains like Ethereum, bitcoin, and ZCash. What makes Tezos different from its competitors?
Every other blockchain can be described by a triplet (S, apply, and score):
- S: An internal, mutable state type. In bitcoin, for example, this would be the set of unspent outputs.
- Apply: A transform that takes a state S, a transaction T, and produces a new state S.
- Score: Scoring function that determines the valid blockchain branch. In bitcoin, this is the total amount of hashing power on the chain.
What makes Tezos different is that it makes apply and score part of the mutable state. That means the rules of the ledger are self-governing. The rules of the ledger control more than just the validity of transactions: they control the rules’ own evolution.
Tezos comes with many of the same features as other blockchains. It’s a decentralized, highly-secure, encryption-based system that’s virtually hack-proof.
Some of the features that make Tezos unique from other blockchains include:
Decentralized, Automated Upgrades:
All modern software makes upgrades easy and automatic, but blockchains are a surprising exception. Tezos decentralizes the upgrade process, something we don’t see with any other blockchain.
Upgrades Without Hard Forks:
Upgrades are decided by stakeholder consensus in accordance to clearly laid out government rules. Those rules are programmatically enforced. This avoids political deadlock and stagnation without entrusting or empowering a single core development team or group to have disproportionate sway over the process.
Who’s Behind Tezos?
Tezos was created by Arthur Breitman, Kathleen Breitman, Vincent Bernadoff, Bozman Çağdaş, Benjamin Canou, and a team of other developers. You can view complete details about the team on their website.
The company has made headlines for having some big names behind it. Olaf Carlson-Wee, for example, the founder of Polychain Capital, has been outspoken about his support for Tezos. Tim Draper has also mentioned plans to invest in the project.
Tezos is a brand new blockchain built from the ground up. the blockchain enables innovation via self-amendment. That means it’s easier, more profitable, and more seamless when adding innovations to the blockchain.
When improvements are added to, say, the bitcoin blockchain, we run the risk of creating a hard fork. Thanks to the Tezos consensus mechanism, that’s no longer an issue.
Tezos is preparing for its ICO on July 1. Stay tuned for more information as the platform grows over the course of 2017.