TEZOS | The self-amending cryptographic ledger

“Hype is wonderful when it happens, and you should capitalize on it. But you shouldn’t bank on it being the thing that will take you to the next step. Because it’s fleeting. The blah-blah-blah goes away, but you’re still there. “ -Tatiana Maslany

TEZOS: The self-amending cryptographic ledger

A palette of projects based on blockchains are getting mainstream media attention and hype from big venture capitalists and angel investors. One such project is Tezos, which has received received vocal and financial backing from Tim Draper, the famed billionaire who bought a massive stack of coins from the federal government at an auction following the Silk Road seizures. Tezos is a decentralized blockchain that governs itself by establishing a true digital commonwealth and facilitates formal verification, a technique which mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighted smart contracts.

What is Tezos?

Tezos is a decentralized blockchain that governs itself by establishing a true digital commonwealth. Tezos can instantiate any blockchain based protocol. Its seed protocol specifies a procedure for stakeholders to approve amendments to the protocol, including amendments to the amendment procedure itself. Upgrades to Tezos are staged through a testing environment to allow stakeholders to recall potentially problematic amendments.

In the development of Tezos, the team aspires to address the following problems;

·         The “hard fork” problem, or the inability for Bitcoin to dynamically innovate due to coordination issues.

·         Cost and centralization issues raised by Bitcoin’s proof-of-work system.

·         The limited expressiveness of Bitcoin’s transaction language, which has pushed smart contracts onto other chains.

·         Security concerns regarding the implementation of a crypto-currency.

The conception of the idea of Tezos was derived in December 2013 and work began in early 2014. The Tezos team has spent a lot of time assessing and addressing the problems with two of the biggest blockchains by market cap bitcoin and ethereum amongst others. As it is rightly said, “Innovation is change that unlocks new value.” Tezos’ innovation is self governance as it gives power back to the stakeholders and users unlike other major blockchains.

Why is Tezos unique?

Tezos uses powerful technology uniquely suited to the rigorous, specific requirements necessary to enforce smart contracts on a public ledger. It facilitates making those contracts subject to formal verification, a process used in aerospace, medicine, and other industries that need to ensure that code works as intended – thus obviating the need for later correction – before it is uploaded to the blockchain. Some features are:

-Decentralized, automated upgrades:

Virtually every example of of modern software provides for automated updates, but

blockchains remain a notable exception because update procedures are typically centralized. Tezos achieves decentralized upgrades of its blockchain protocol, something no other system offers.

-Upgrades without hard forks:

Upgrades are decided by stakeholder consensus in accordance to clearly laid out governance rules that are programmatically enforced. This avoids political deadlock and stagnation without entrusting or empowering a single core development team or de factor group with disproportionate sway over the process.

-Funding innovation: While blockchain innovation is moving at a breathtaking pace, there is often little incentive to improve existing systems. As a result, application developers have been shoehorning tokens into applications where they do not naturally fit. These “appcoins” dilute the value of the underlying platform more than they contribute to its network effect.

-Thwarting ddos attacks: To protect against certain denial of service attacks, the protocol provides the shell with context dependent bounds on the size of blocks and transactions.

-Proof of stake: Although Tezos is designed to take up any algorithm, the Tezos seed protocol is based on the proof of stake algorithm. Unlike other POS systems, inactive addresses will not be able to stake coins, inactive addresses would simply be destroyed along with their coins – an innovative yet extreme way to limit supply but this also enables active user participation in order to receive rewards.

The Team behind Tezos

The development team is primarily located in Paris, France and has been closely working in partnership with OCamlPro, a company with expertise in deep OCaml. Most of the developers have Phd in computer science and expertise in programming language theory.

The husband-wife team of Arthur and Kathleen Breitman are the cofounders of the Tezos ledger project. Gordon Mohr and L. M. Goodman are credited with the spearheading of the thought leadership. Gordon Mohr worked for archive.org and Goodman is a reputed crypto anarchist.

Also, according to the whitepaper and the overview, the launch of Bitcoin XT is also credited with fomenting the governance aspects of the project. This is a de facto nod to former Bitcoin developer, thought leader, and founder of the first Bitcoin faucet, Gavin Andresen, who with Mike Hearn founded the alternative implementation of Bitcoin in an effort to sidestep the “block-size debate” which remains ongoing and has now devolved into a disgusting politicized mess of competing solutions.

Tezos also has a star studded advisors’ list which includes Zooko Wilcox, lead developer and founder of Zcash currency, Andrew Miller, advisor for Zcash and Emin Gün Sirer, who is the co-director at Initiative for cryptocurrencies and contracts at Cornell University.

The distribution of tokens: Crowdsale

The fundraiser will last for a period of 2000 Bitcoin blocks starting from JULY 1st 2017. Throughout this period, a contribution of one bitcoin will lead to a recommended allocation of five-thousand tezzies (5,000 XTZ) plus a time-dependent bonus. The bonus starts at 20%, meaning that a contribution of 1 BTC will yield a recommended allocation of 6,000 XTZ (a 1000 XTZ bonus). From 20% at the outset the bonuses will decrease progressively to 0% over four additional periods (15%, 10%, 5%, and 0%) lasting 400 Bitcoin blocks each. The average time between Bitcoin blocks is approximately 10 minutes, thus the fundraiser is expected to last about two weeks, and each bonus period of 400 blocks roughly two days and eighteen hours.

The crowdfunding website link is https://crowdfund.tezos.com/.

Conclusion and review:

After reviewing the whitepaper and the technical paper for the Tezos project, it is safe to agree with Tim Draper for what he had to say for Tezos, his first ICO participation.

“Tezos could definitely make the world a better place “ – Tim Draper

With Tezos aimed at solving far more problems than it could potentially create, the Breitman’s have put their money where their heart and mouth is. This ico is going to be of monumental standards even for the most recent ones that have garnered in excess of $100 million dollars as crowdfunding.

The only drawback for the ICO in terms of investment is the no hard cap on the supply of the coins, although, low cap or a hard cap is not the only criteria for success as can be seen with ethereum ICO which had no hard cap. The initial supply will be based on demand and the future supply through staking. With an initial private presale that took place last year, gives enormous advantages to the presale investors but this shouldn’t and cannot be seen as a criterion for not investing in Tezos.

NOTE: This is not a trading/investment advice and necessary research and due diligence is advised before investing in any cryptocurrencies. Coremedia.info or the writer can’t be held responsible for your trades.

For coremedia.info,

Tarang Amin

amin.tarang@gmail.com