Tezos is the world’s first self-evolving blockchain and is a smart contract platform comparable to Ethereum. Cryptocurrency tech is innovating at such a pace that it appears rather difficult to keep up with all the modern developments. As discoveries unfold, Tezos predicts that their blockchain will endure on the cutting edge.
How Tezos Work
Tezos is a peer-to-peer, distributed, and permissionless network which strives to advance a few notable enhancements over its well-established neighbors. To be specific, the team markets themselves on the principal approaches of self-amendment and on-chain governance.
It is a key feature that focuses on the involvement of all stakeholders in the administration and governance of the platform. Stakeholders can vote on corrections to the Tezos protocol and even modifications to the voting procedure itself. In the most straightforward case, stakeholders will support or veto changes in the code or protocol.
The Code Evolution
A typical blockchain utilizes the following three protocols to work:
Network protocol – recognizes blocks and broadcasts transactions
Transaction protocol – determines what constitutes a transaction valid
Consensus protocol – defines how consensus is reached in a unique chain
But, in Tezos’s case, they adopt a generic network shell which is compatible with the various transaction and consensus protocols a blockchain requires. In other words, it was created with a modular fashion. This new blockchain is kickstarted with a seed protocol which will then be democratically designated as the project develops.
The source code is executed in OCaml which is a fast, compliant, functional programming language which should accommodate such an ambitious project and its technical specifications.
Tezos points to the staking process as “baking.” In this blockchain model, bakers perform deposits and are compensated for signing and publishing blocks. Any lousy behavior by bakers will end in a lost deposit. Based on the latest data, there are then 450+ bakers providing to the safety and security of the system.
Since one of the primary philosophies turns around a virtual democracy, any token holder may choose their baking and voting rights to others in the network.
ICO And Trading History
The Tezos foundation had obtained 66 000 Bitcoin and 361 000 Ether after the completion of their ICO. In 13 days, a huge $232 million in funding was sent to the project using investors and is a record-setting amount for any ICO at the time. It is a huge success compared to barely two years earlier. Mr. Breitman failed then to convince various big banks to invest roughly $5 to $10 million in his project.
Tezos XTZ was launched on June 24, 2017, at a price of about $3 per coin. It touched a peak of $10.50 at the height of the buying craze in the overall cryptocurrency market throughout the middle of December 2017. The price had yet declined considerably sharply since then along with the rest of the market and trades at around $2.65 on August 17, 2018. Daily volumes are reasonably stable and trade above the $2 million marks paired with Bitcoin(BTC), Ether(ETH) and Tether(USDT).
According to CoinMarketCap, there is a total supply of approximately 763 million “Tezzies” in the currency pool. The live blockchain or mainnet was officially launched on Monday, September 17. The much expected mainnet launch follows the beta testing phase, which commenced on June 30.
The project is the idea of Arthur Breitman. A French-born, and has notable experience working for large corporates like Morgan Stanly and Goldman Sachs. Along with his wife Kathleen, they now manage the cryptocurrency project from a San Francisco office.
Arthur Breitman is a known computer scientist and mathematician who has background working in the financial sector. He closely regarded the historical rise and adoption of Bitcoin from the outset and perceived it’s “inability to evolve” and instead direct to hard forks. His suggested solution is the Tezos project that exists today.
Kathleen Breitman also has expertise in the financial sector as she was working for distinguished companies such as Bridgewater Associates and R3. The latter provided her insights into distributed database technology.
Arthur issued two papers about his self-amending cryptocurrency vision in 2014. Those papers have developed into the present Tezos whitepapers. In the following year, he founded a company in the US called Dynamic Ledger Solutions (DLS).