What is tezos?
Tezos is an open source platform for uses and applications; the system is designed to grow and evolve. Tezos uses a commonwealth approach to governance. Stakeholders control the policies and operations. The self-governing approach provides an internal system for development.
Tezos operates a blockchain for assets and applications, and the system can manage high-volumes of transactions. The self-governing design permits growth and change. The blockchain can improve and respond to markets without the need to split or fork into two or more blockchains.
Tezos is a smart contract platform that supports a precise type of smart contract code. Tezos smart contracts are self-executing agreements that can complete without action by a third party. Like Bitcoin and Ethereum, Tezos has a cryptocurrency; it is called Tezzies and trades under the symbol XTC. The initial Tezos presale raised a total Bitcoin and Ether equivalent to $230 M.
Why a Commonwealth?
Governance of a blockchain can be smooth and steady until a point at which the members cannot agree on the path forward. There may be a dispute over policy or the direction of development. In other platforms, these differences have caused a split in the platform with the two sides taking separate paths. Fork is the common reference for these splits, and a forked currency is the typical result of unresolved issues.
A commonwealth is a group that shares goals and interests. The Tezos approach requires that they work together to make policies and adjust them by consensus. The longer view is that the platform will continue in its original form and grow as members thoughtfully develop policies. This approach seeks to avoid forks and promote a stable platform and currency.
Governance in Tezos
Tezos platform has a set of rules and process for amending those rules. The existing rules or core principles are important, and the commonwealth of stakeholders has power to change the core. The freedom for change and evolution over time includes the potential for changing the amendment process.
Benefits of Self-Governance
Self-governance can help avoid divisions in the platform community that cause splits or forks. The existence of forks may diminish the platform and its currency. A fork is a disruption and the resulting divided community may nit be as strong as the larger group.
Self-governance can support change and innovation. These actions can improve operations and make the group, platform, and currency stronger. A good example of the benefits of self-governance in payments to innovators. The ability to fund individuals or groups that promote improvements to the protocol fosters a productive business ecosystem.
The stakeholders can incentivize improvements and innovations from all levels of the platform organization. The operation and maintenance of the network is essential to the success of the platform.
Smart Programming in Tezos
The Tezos platform uses a programming language called Michelson. This tool supports smart contracts and a process called verification. A smart contract is a set of codes that can proceed without any action by a third party.
The Tezos platform and code support a process of proof to ensure that smart contracts are correct and will function as expected. Tezos supports a process called verification to check contract codes by mathematical computation. The verification process can reduce risk of error in the code which may be vital in some situations requiring high-levels of precision.
The essence of a block chain is the process of putting information into a secure record system. The process requires a consensus or agreement among all the sites in a blockchain. The early types of Blockchain such as Bitcoin used a process called Proof-of-Work. The proof of work model or mining uses a lot of computations to decide which person would complete the transaction and store the data. Proof of work required a lot of mathematical computation and use of massive amounts of electricity.
Proof of stake does not require extensive math and power usage; it does require a stake in the platform. The process or baking uses the stake to enforce honesty and provide system security. If someone acts dishonestly, the automatic system can take their stake.
Who can participate?
In a standard POS process, the selection avoids predictability by using some random elements. Some factors in POS systems include the age of the stakeholder’s holdings, the size of the stake, and the lowest hash values.
On the Tezos platform, any stakeholder can participate in the consensus process. The creator of the block gets a reward; If the right holder does not wish to participate, he and she can delegate the opportunity to another stakeholder.
Origins of the Tezos Platform
Tezos was a project initiated by the husband and wife team Arthur and Kathryn Breitman. The project began in about 2014 with Arthur and Kathryn Breitman and a core of development engineers. The project evolved into a full release in 2018. The initial governance resided in the Tezos Foundation. As stakeholders gained ownership, the control shifted to stakeholder consensus.
The potential of Tezos goes beyond a cryptocurrency. The design of the platform and code supports verified smart contracts. The fundamental security features can attract institutional and other investors that seek high-levels of certainty.
Tezos Is Unique
The Tezos platform is different in some important and innovative ways. It has self-governance and the capacity to grow and evolve. It supports smart contracts and formal verification by mathematical analysis when needed.
Many reviewers view the Proof of Stake approach to securing blocks as far superior to the costly and energy intensive proof of work approach. Tezos has a role in cryptocurrency that will fit alongside Bitcoin and Ethereum and similar currencies. Tezos offers an exciting potential for innovation.