Privacy features on Tezos are injected and will be live on mainnet in February

Privacy features on Tezos are injected and will be live on mainnet in February

By Allen Walters | Publish0x posts | 1 Dec 2020

Just three weeks after the last upgrade was implemented into Tezos' mainnet, the next upgrade is injected. This upgrade includes privacy features, which will enable developers to include privacy features in the smartcontracts they deploy on Tezos. Tezos will be the first smartcontract platform to offer that possibility.
The last upgrade, named "Delphi" improved the maximum amount of transactions per second (tps) towards 120 tps. This is 8 times faster than Ethereum. On top of that, it reduced gas fees by a large margin. On average, 3,215 transactions on Tezos now cost the same as 1 transaction on Ethereum. 

The latest upgrade is called "Edo" and it is one of the biggest so far. Today it was injected and will go through Tezos' on-chain governance cycles. This means that all holders of Tezos' native token XTZ, will be able to vote on this proposal: Protocol level governance has been fully decentralized. Read more about the process here. 

Edo will add privacy options to Tezos. This means that developers can easily integrate privacy in their smart contracts, which will enable them to provide private transactions and develop "privacy-conscious" applications.
Privacy offers various interesting use cases. Wallets could now offer the possibility to send private transactions if they implement privacy in their application. Assets like STO's or any other type of token could be traded privately through future applications. But one particular interesting application that I would like to point out would be CBDC's (Central Bank Digital Currencies). Tezos is in the race for three Digital Banking Currency projects. A project for the National Bank of Ukraine has been in development for some time now. And a few months ago, Tezos was announced to be part of one of the eight selected parties for further development of the CBDC experiment for Banque de France. Two weeks ago, Tezos was announced to be selected next to Ethereum in the DIBC project that was initiated by BNP Paribas, Crédit Agricole CIB and Caisse des Dépôts. 
Being able to offer privacy could be decisive in these projects. As Ryan Lackey pointed out a while ago:

"Big open question is just how to get the right solution out there. Privacy is one issue that various central banks [that plan on] deploying this stuff, have on their radar. Generally I’d say European banks are very demanding of privacy, especially when value thresholds can be set, but each bank and regulator will be different."

Tezos would now have a serious advantage over other contestants in the CBDS race.

Edo also introduces Tickets. Tickets is a convenient mechanism for smart contracts to grant portable permissions to other smart contracts or to issue tokens. Tickets will be improving challenges like concurrency, which is a general issue developers face, especially in decentralized smartcontract platforms.
Tickets has not been discussed much yet, but it is a game changer for Tezos and propels its total package of fundamentals way ahead of other decentralized platforms. A full article on this topic will follow.

Extra period added to the governance protocol
So far the on-chain governance protocol consisted of 4 periods. Proposal, exploration, testing and promotion. After the promotional phase (which is the final voting round) an upgrade immediately runs on mainnet. This means that everyone would need to start preparing for the transition before the voting has concluded.
After Edo, an extra period will be added of two weeks: the adoption period. This means that the the transition phase will be more relaxed for everyone involved.


New to Tezos? Read this full introduction to Tezos.

Here you can read more about the Status of the Tezos ecosystem. (Latest news, developments and growth of the adoption rate and on-chain statistics)

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Allen Walters
Allen Walters

Fascinated by blockchain and future proofing cryptocurrency. Discover the tech before it gets relevant. Twitter: @IgnoranceIt

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