Tezos has been hitting the spotlight lately in the cryptocurrency space. It’s ranked Top 20 on Coinmarketcap and there’s been a lot of hype around this company.
According to the Tezos’ website, “Tezos is a new decentralized blockchain that governs itself by establishing a true digital commonwealth.”
What the heck does this mean?
A commonwealth is a group that chooses to be linked together because of their shared goals and interests. Tezos aims to have their token holders make decisions together to govern the platform and improve it over time.
This means that there isn’t “one leader” dominates all kind of scheme.
What exactly is Tezos?
Tezos is a smart contracts platform like Ethereum but one of the main differences is that Tezos incorporates a process for upgrading the protocol over time through on-chain governance.
In Tezos, developers are able to independently submit proposals for protocol upgrades wherein they include a request for compensation for their work. Tezos token holders can then vote on whether the proposal should be approved.
This allows developers to actually make money for contributing to the development as opposed to working for free.
Tezos vs Ethereum
Tezos is probably mostly compared against Ethereum since they’re both a smart contract solution. Tezos uses a native programming language named Michelson.
Michelson is a functional programming language which facilitates formal verification.
Formal verification essentially allows developers to mathematically prove the correctness of their smart contract code. Formal verification proves that some properties of the contract will be maintained, but does not necessarily mean that the code is 100% correct.
Formal verification is used in industries where there is little room for error (e.g. nuclear reactors, aircraft, medical devices).
With Ethereum, you could run into bugs and flaws in smart contracts because it doesn’t have formal verification implemented.
The trade-off with formal verification is that it can be difficult for developers to apply properly, leading to a false sense of security as all of the correct assumptions must be baked into a proof for it to be useful.
The co-founders of Tezos are Arthur Breitman (ArthurB) and Kathleen Breitman (KathleenB) who have been developing Tezos since 2014 with a team of core developers. Currently they are expected to be several months away from launching the Tezos network.
I believe that Ethereum, Tezos, and other smart contract platforms will coexist as they each aim to serve different purposes and the token holders have different ideals. When cross-blockchain infrastructure like Cosmos and Polkadot are fully developed we will hopefully see Ethereum and Tezos tokens move freely between both platforms.
To learn more about Tezos, you can visit the following resources:
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