Tezos is here to stay !
Ok guys, in today's post, let's review this gem because it clearly is here to stay ! I know, i know, everything has been said about it already, but i truly believe that the best is yet to come, and here is why.
QUICK OVERVIEW & HISTORY
Ok, so what is Tezos ?
Tezos is a cryptocurrency built in 2018 by Arthur Breitman & Kathleen Bretiman from the ground up. They started from scratch & wanted to make a really different crypto, not just a mere copycat of existing projects. From the start it had a huge impact since it was designed as a highly innovative project (more on that later), and it started with a massive ICO of about 228 million funds raised.
The native coin of Tezos is 'tez' and its symbol XTZ. It is written in the OCaml programming language.
Ok great, so what is the catch ?
Here is the thing, it is like Ethereum or EOS, it is a smart contract platform with on-chain governance & it uses DPoS (Delegated Proof of Stake) as its consensus mechanism. So, its aim is to build the next generation of decentralized applications & LAST BUT NOT LEAST, the governance & the updates made over time do not use hard forks which makes Tezos a self-amending cryptographic ledger. Big word, but it really is simple : it is more consensual.
According to the White Paper of Tezos written in 2014, you can read the following :
"A blockchain protocol can be decomposed into three distinct protocols:
- The network protocol discovers blocks and broadcasts transactions.
- The transaction protocol specifies what makes a transaction valid.
- The consensus protocol forms consensus around a unique chain.
Tezos implements a generic network shell. This shell is agnostic to the transaction protocol and to the consensus protocol. We refer to the transaction protocol and the consensus protocol together as a “blockchain protocol”. We will first give a mathematical representation of a blockchain protocol and then describe some of the implementation choices in Tezos."
About the mathematical representation, here is a quick snapshot for those who are interested & a bit masochist... By the way, go check the White Paper, it is well written & not too abstract (while the project is quite complex), so you can learn a lot of stuff there.
A huge work of research has been done there, just like other cryptos who have bonds in the academic world (namely Cardano, Polkadot), so it is far away from a shitcoin with no use case & I truly believe that the journey of Tezos is just starting. So let's jump right now into the specifics of this awesome project.
HOW DOES IT WORK ? WHAT MAKES IT DIFFERENT FROM OTHER CRYPTOS ?
As mentioned above, the architecture of Tezos is composed of three main components about the protocol :
- The network protocol that handles the broadcasting of infos between the nodes of the network.
- The transaction protocol that takes care of validating the transactions inside the network.
- The consensus protocol whose job is to make sure that every node agree on the transactions of the network.
This components interacting with each other & the network shell make Tezos a very secure & efficient blockchain.
The main difference is the key point of any crypto is in the consensus mechanism. And for Tezos, it is quite elaborated. Let me explain :
Tezos uses DPoS as explained earlier and specifically Liquid Proof of Stake.
As you probably know, there are lots of consensus mechanism : the famous Proof of Work for Bitcoin & lots of other cryptos that uses the same principle with the SHA 256 algorithm, but also Proof of Stake (soon for Ethereum with the merge coming, or Cardano & many more more that are switching), but there is also Proof of Identity & so many more really (Chia, etc). By the way, I probably will write a post for the different mechanisms very soon.
What makes Liquid Proof of Stake special ? Here are the main differences with usual DPoS according to Tezos.
Tezos is actually more like proof-of-stake with delegation than delegated proof-of-stake. Hence the Liquid Proof of Stake. You can choose delegation, it is not mandatory. And this makes life easier to maintain security, decentralization & coordination in the network.
In the case of Bitcoin or Ethereum, there are the miners who handle the security of the network. In the case of Tezos, these are the bakers.
Basically, a baker's baking power is determined by the number of tokens that are deposited. So the more you deposit, the higher the chance you mine a block. Once a baker mines a block, 32 bakers selected randomly become delegates so that they can verify that the transaction is valid in a process that is called endorsing.
That is it. Not that complex after all. And this makes the network secure, trustworthy & decentralized. All the good stuff.
Tezos offers its own Smart Contract Blockchain, just like Ethereum or Cardano, so it has a unique platform to build decentralized applications on it. Ok, cool. But what are Smart Contracts in Tezos ?
Smart Contracts are computer programs stored in the blockchain that execute code when certain conditions are met. All of this with full decentralization. They are using the Michelson programming language inside the Tezos Virtual Machine.
What makes Smart Contracts unique in Tezos is the fact that they enhance formal verification (which are used to prove with a high degree of security some mathematical properties about computer programs) and hence they reduce the likelihood of creating bugs in these programs.
Here is an example of such a contract using LIGO (you can also use Python with smartpy to build such contract) :
Credits to Tezos Israel & Aharon Lando
It is a simple example of a calculator that you can build using the Tezos Blockchain if you are looking for ideas to build your next dApp !
By the way, if you are a developer looking to onboard with dApp development using the Tezos ecosystem, no need to worry. Tezos has indeed a huge community of developers ready to help, they welcome newcomers easily & work hard to achieve higher adoption & security for the ecosystem.
There is just so much to talk about here, but we will make it short & simple. Plus, if you want to know more about it, there are plenty of resources available for you out there !
PARTNERSHIPS & RECENT NEWS
This is also why I am super bullish on Tezos. It is innovative, secure, scalable, decentralized & it is on its way to mass adoption with SO MANY partnerships. So, let's take a quick look on the main partnerships formed over time :
Credits to Red Bull Racing Honda
Red Bull Racing Honda has recently formed a multi-year technical partnership with Tezos. This is BIG news ! As Christian Horner said :
"Tezos’ ability to remain at the cutting edge of blockchain technology makes it a natural fit for Red Bull Racing Honda."
They are indeed both super innovative & resourceful companies, they have what it takes to perform at the best of their capacities & have this grit to go & get the win... so they will form a fantastic partnership, that's for sure ! This season I believe we will enjoy a win on both the Formula 1 championship & on the leading blockchain company award !
And there is another partnership that is great news for Tezos as well, and that is Gitcoin !
Credits to Gitcoin
Gitcoin has indeed recently announced the first Tezos Hackathon with 75,000 $ in prizes !
For those who don't know, Gitcoin is a rich community of open-source builders that develop and grow the Web3 ecosystem. It has roughly 300,000 monthly active developers for about 2,000 projects. So quite a big deal to say the least !
Since the network activity of Tezos is booming, this is the perfect time to organize such events. Plus, it will give the chance to so many people to dive deeper into the project (and earn some cash, which is always nice). The hackathon is mainly designed to expand the ecosystem concerning NFTs & DAOs. So, if you want to go for it, you can check resources available on platforms such as Tacode & Opentezos, where you can learn how to build on the Tezos ecosystem.
So these are for the recent news, but Tezos has a loooooong list of massive companies that back the project. To name a few : Tribe, Globacap, MOBI, MainframeObsidian Systems, Taurus Group, Andra Capital & so many more...
I have not talked about the case of the lawsuit in the early days because it caused so much drama for nothing. To me, Tezos is a nice project & I just want to highlight the positive on this. But you can go check that out if you want to find more about the issue. For now, it has been settled & I hope that everything is on the right track for the future !
Today, the community is growing, the project is solid, the development of dApps is going great & its on-chain governance is just a wonderful mechanism. If you ask me, all of this makes Tezos one of the best projects of the crypto space & I truly believe it will thrive soon.
I hope I gave you a nice overview of the project & encourage you to go check what they have to offer !
Happy reading & see you on the next one.