Tezos —— A Self-Amending Crypto-Ledger
- Tezos is a blockchain platform that supports smart contracts and dapps, based on the idea of a digital commonwealth, in which governance is democratized in an efficient and sustainable manner to avoid costly hard-fork scenarios.
- Tezos relies on Liquid Proof of Stake (LPoS), with full support of Turing-complete contracts. In the Tezos network, block generation is referred to as baking while validators are known as bakers.
- It is also a self-amending blockchain that can upgrade itself over time. Stakeholders can vote on amendments to the agreement, not limited to any factors that reach consensus on the proposal.
- Within the network, XTZ is the token used for all operations. With the incorporation of features such as Liquid Proof-of-Stake and on-chain governance, throughput is traded for a higher level of decentralization.
Tezos is a self-amending blockchain that can upgrade itself over time. Stakeholders can vote on amendments to the agreement, not limited to any factors that reach consensus on the proposal. Just like Ethereum, Tezos supports smart contracts and provides a platform for others to build decentralized applications (Dapps) on it.
The difference is that it has its own smart contract language, and for the first time proposed a self-made transaction and network consensus mechanism through mathematical proofs to solve the current thorny network upgrade and bifurcation problem.
This open-source platform calls itself "secure, upgradeable, and durable" and says its smart contract language can provide the accuracy required for high-value use cases. According to Tezos, its approach means that it is future-oriented and will "maintain the most advanced state for a long time in the future", which means that it can accept the development of blockchain technology.
Within the network, XTZ is the token used for all operations. With the incorporation of features such as Liquid Proof-of-Stake and on-chain governance, throughput is traded for a higher level of decentralization.
The couple: husband Arthur Breitman and wife Kathleen Breitman. They founded a startup called Dynamic Ledger Solutions which was tasked with writing the code that would underpin the Tezos protocol. This company was subsequently purchased by the Tezos Foundation to ensure that it owned all of the intellectual property rights relating to the network.
The wife, Kathleen, served as the CEO and worked for the professional services company Accenture for nearly two years, and later served as a senior strategic assistant for the distributed ledger startup R3CEV. Husband Authur served as vice president of Morgan Stanley from 2013 to 2016. Both are veterans of Wall Street and have considerable insights into traditional economics and finance.
The Tezos Foundation, based in Switzerland, is responsible for the promotion and management of the protocol. The Foundation is subdivided into six committees which focus on various respective facets. The foundation consists of the Foundation Council, Executive Committee, Audit Committee, Investment Committee, Technical Advisory Committee, and Nomination Committee.
Tezos’ core features include:
- Liquid Proof-of-Stake (LPoS): Tezos employs a Proof-of-Stake consensus mechanism designed to maximize decentralization of governance and encourage participation among XTZ holders of all sizes. LPoS maintains a dynamic set of validators that can expand with the network, and allows stakeholders to delegate rights to other holders. On Tezos, validators are also called Bakers. There is no limit to the number of bakers. The prerequisite for becoming a roaster is to mortgage a certain amount of Tezos token (XTZ) to participate in the consensus.
- On-chain governance: A mechanism for facilitating the self-amending feature of the Tezos blockchain. Tezos employs this system to incentivize developers by rewarding them for their contributions, in addition to democratizing the evolution of the protocol itself through the voting process, which provides a viable alternative path to a hard fork. All stakeholders can participate in protocol governance either directly or indirectly, through delegation. An election cycle provides a procedure for stakeholders to propose amendments and reach an agreement.
- Self-amendment: The protocol can “upgrade itself” without having to fork the network into two different blockchains. Decisions to change facets of the protocol come from within the community of stakeholders and are implemented through the on-chain governance process. Self-amendment is designed to reduce coordination and execution costs for protocol changes and facilitate a smoother transition between network iterations.