Tezos (XTZ) – is a generic self-amending crypto-ledger that can represent any blockchain based ledger. Tezos provides a platform for Bitcoin, Cryptonote, Ethereum and many other Blockchain to be represented within its system through the implementation of a proper interface to the network layer.
One fascinating fact about Tezos is that it facilitates Meta upgrades; where protocols evolve through the amendment of their codes. Tezos achieved this as it begins with seed protocol which defines a process for stakeholders to allow for modifications on the protocol. Added to that, the amendments are extended to the voting procedure.
Tezos Remarkable Features:
One crucial feature that places Tezos above most blockchain network is the outstanding self-amendment characteristics it has, which allows it to upgrade itself without having to ‘fork’ the network, unlike others.
This allows it to eliminate the possibility of division of the community or alteration in stakeholders’ incentives, and disruption of the network effects formed over time as a result of ‘fork’.
The self-amendment feature also reduces the cost of coordination and execution protocol upgrades, allowing for innovations to be seamlessly implemented.
The Tezos Seed Protocol
This seed protocol is one which is based on a true proof-of-stake system, supporting Turning complete smart contracts. Tezos Seed protocol is implemented in OCalm which is a very powerful programming language that offers speed, and unambiguity in terms of syntax and semantics.
Another interesting fact about Tezos is that all its stakeholders can participate in the governance of the protocol. This is achieved using the election cycle which makes room for a systematic and formal procedure for an agreement to be reached by stakeholders on the protocol amendments as proposed.
With this, Tezos is able to change the initial election process to subscribe to better governance mechanism, as it combines its self-amendment and its on-chain governance features.
An Innovation That Is Truly Decentralized
Being a decentralised innovation, the proposed amendments that can be approved by stakeholders include payment to individuals or groups that improve on the protocol.
As a result of this payment mechanism, there is hearty participation and decentralisation of the maintenance of Tezos network.
The development and adoption of Tezos is driven by the maintenance of a diverse, open, and active developer ecosystem, one which is influenced by payment of funds for any contribution to the protocol upgrade and development.
Tezos Smart contracts
With Tezos, there is a platform that allows the creation smart contracts and the building of decentralised applications that are not censored by third parties and cannot be shut down by third parties also.
Tezos also facilitate a formal verification, and this greatly improves security by proving properties of programs in a mathematical way. Such programs include the smart contracts. With this, costly bugs are eliminated.
Tezos also boasts of a proof-of-stake mechanism which is a mechanism that allows its various participants to reach out for conclusions and make consensus on the state of the network.
This means that any stakeholder in Tezos is entitled to be part of the decision-making process and is even rewarded for contributing to the stability and security of the network, by the protocol itself.
The Proof-of-stake also means that it is less costly for participants in the consensus, unlike other consensus mechanisms, and there is a lowering in the barriers to entry for involvement.
Basically, the primary programs that are run by Tezos include; the node, the client, the baker, and the evil client.
The Tezos node is the main program, and it involves connecting to a network, relay of blocks and transactions, validation of transactions, and maintenance of a locally accessible view of the consistent global public ledger.
The participants in the decentralised peer-to-peer network are known as ‘nodes’, and they provide the computational resources that are needed to sustain the workings of the network.
There is the JSON HTTP API, and client through these are able to interface with the node for the provision of a handier command line based interface to access the ledger. The client can essentially be seen as the wallet as it handles keys, remembers the address of contracts and performs a host of other related function.
Technically, there is a split between the baker and the endorsee. Starting with the client, the baker is responsible for the monitoring the network and the creation of blocks. It can also check for the validity of blocks through a signature as requested by the proof-of-stake.
The Attacker/Evil Client
The attacker is essentially an integration test tool that implements various attacks which include; sending large data, tricking of nodes into validating a long chain, etc.
It is certain that the availability of various features in an entity makes it profoundly versatile. Similarly, Tezos remains a robust blockchain network with numerous features. Thus, the increased use case of the altcoin makes it a giant amongst its contemporaries.
Image Credit: Bitcoin Exchange Guide.