New to Publish0x? Register here and start earning crypto everytime you read or write an article.
What is Tezos
Tezos aims to remedy the potential for atrophied evolution in the crypto-currency space by presenting a unique decentralized system. It guards against the vulnerabilities wrought by the source of centralization through radically decentralized protocol forks. A successful fork does not merely require software engineering, but the coordination of a critical mass of users. An attacker capable of changing social consensus controls the currency for all intents and purposes.
Proof of Stake
The cost of executing a double spending attack against the network is no more than the cost of subverting a few large mining pools. Proof-of-stake, as used by Tezos, does not suffer from this problem. In the long run, the total mining revenues will be the sum of the all transaction fees paid to the miners. Since miners compete to produce hashes, the amount of money they spend on mining will be slightly smaller than revenues.
The proof-of-work system puts the miners, not the stake- holders, in charge. Forks for instance require the consent of a majority of the miners.
A downside of a Turing complete scripting language for the contracts is that the number of steps needed to execute a script is potentially unbounded, a property which is generally uncomputable. OCaml is strong typed and offers a powerful type inference system. As Tezos matures, it will be possible to automatically extract key parts of the protocols code from mathematical proofs. Formal verification has progressed by leaps and bounds in recent years, it is time to use it in real systems.
The Tezos network achieves consensus using a liquid proof-of-stake model. It features an on-chain governance model. That allows the protocol to amend itself when upgrade proposals receive a favorable vote from the community. The on-chain-governance includes the ability to create blockchain forks. That being said, Tezos can implement any type of blockchain algorithm: proof-of-work, proof- of- stake, or even centralized.
Tezos aims to be the last cryptocurrency. The ability to solve collective action problems and easily implement protocols in OCaml will make Tezos one of the most reactive cryptocurrency. The irony of preventing the fragmentation of cryptocurrencies by releasing a new one does not escape us.