Coindesk reports on the rally in ‘tezzies’ (XTZ), the native crypto currency for the Tezos platform that is approaching launch after almost a year of delays in development.
The Tezos ‘mainnet’ has been ‘in beta’ since late June, and XTZ tokens have been tradable on some exchanges since then, reports Coindesk. According to the article, developers tweeted yesterday that the Tezos mainnet ‘arrives on September 17th’.
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Tezos is instructive for investors monitoring the world of blockchain and crypto for several reasons:
First, it demonstrates the challenge public blockchain networks face in ‘getting to live’. Tezos originally planned to be live by late 2017 but was side-tracked by time-consuming internal disputes over governance – ironic given the platforms aim of improving blockchain governance.
Second, the Tezos blockchain operates according to a different governance framework (compared to Bitcoin and Ethereum), where developers put forward proposals for improvements and token holders vote on whether to adopt those improvements. The protocol hopes to avoid the ‘hard forks’, or splits that have become part of the soap-opera for the Bitcoin and Ethereum blockchains. Tezos developers can also get paid for those improvements, avoiding the reliance on developers essentially working for free.
Third, the Tezos blockchain uses a different consensus mechanism, delegated proof-of-stake, (dPoS) which avoids the energy consuming waste of Bitcoin and Ethereum’s proof-of-work consensus mechanism, and potentially offers a greater ability to scale compared to the two leading networks (we note Ethereum’s aim to migrate eventually to proof-of-stake from its current proof of work).
Finally, reports suggest that Tezos smart contracts should be less susceptible to poor coding, bugs and security vulnerabilities since they are coded in ‘Michelson’, a programming language that supports ‘formal verification’ which allows developers to show mathematically that their smart contract code is correct.
Gradually, the 3rd and 4th generation blockchain platforms funded with large token issues in 2016 and 2017 are making it into live production – the EOS blockchain launched earlier this year, we now have Tezos, and next year we expect to see the Telegram Open Network (TON) go live. Whether they will make a needle-moving difference to the world we live in remains to be seen.
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