Tezos. Review - September 2018
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You can find our previous reviews here:
Dash. Review - August 2018.
Binance Coin. Review
IOTA. Review. August - 2018
Cardano - review. Future plans.
Ripple - review. Further Perspectives
Litecoin. June'18 overview
The Dow Jones index. From where did it come to us?
Bitcoin Cash. June 2018 overview
Are cryptocurrency indices a new crypto market trend?
EOS. End of May'18 overview
Ethereum. May 2018 overview
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Today’s review: Tezos
History of Tezos
The platform has always caught the attention of the media. The project promised to establish a way to vote on upgrades to a blockchain network. Had the concept worked it would have resolved one of the most difficult issues in the crypto world. Unfortunately this did not happen and Tezos was accused of fraud.
The platform was launched in 2014 and was created by two founders, a married couple - Arthur and Kathleen Breitman. Later they founded an investment fund - Tezos Foundation, which was headed up by a family friend - Johann Gevers.
Arthur blogged about the creation of the Tezos platform:
Tezos is a security-minded, future-proof smart contract system. Because Tezos has a built-in governance mechanism, its protocol can evolve and incorporate new innovations over time. In other words, stakeholders can make and enforce decisions about changes to the network using the network itself.
Despite the existence of this governance mechanism, some decisions will inevitably arise at a level that cannot be fully addressed within the network. To help in resolving those decisions and to provide a clear picture of our aims with the Tezos project, we are publishing this list of the general principles and values we wish to preserve at the “meta-governance” level. Principles are listed in order of precedence.
During the ICO on July 1 2017, the project had generated a record amount of $ 232 million within 2 weeks, in addition to the funding, there were major sponsors, including various hedge funds.
Platform for users
The platform works like the Ethereum network,both projects have a many qualities in common, particularly the want to create a new network, far greater than Bitcoin using smart contracts. Unlike Ethereum, Tezos’s charter states the concept of how to interfere with the network as little as possible. With this in mind, the Tezos community is similar to the Ethereum Classic community.
All decisions on the platform are solved with the help of their internal management team by vote. Any user can suggest to change the code. In this case, the owners of the master node decide on a general consensus whether to accept the update or not. If the decision is accepted by the majority, then the open code is updated. This management process democratizes the system as a whole and with the help of the self-correction. Tezos can accept updates automatically with the permission of the community.
The purpose of decision making is aimed at increasing the level of users' trust in the platform, increasing numbers in the community and the volume of trading.
Tezos uses its own programming language Michelson for writing smart contracts on the platform, which provides automatic formal code verification. A formal check does not make the code 100% reliable, but it does guarantees the basic functionality, and helps to avoid fatal errors.
The platform does not have a mining functionality. Users initially could only obtain tokens during the ICO. Now, they can be bought on the stock exchange. Tokens can also be obtained as a bonus for participating in the development of the network.
Tezos has a strong list of investors and advisors such as Polychain Capital, the head of Zcash Zico Wilkos, and the famous billionaire and venture investor Tim Draper. Draper's involvement has attracted so much attention the ICO has been very successful.
The Tezos platform has a modular structure which it enables its unique governance and self amending capabilities through leveraging a ‘network shell’. The network shell consists of 3 protocols based on, the network, the levels of transactions and consensus. According to the idea, this approach makes it easier to update codes and avoids possible hardcodes.
The platform also has a wallet (Unofficial) - TezBox. Tezos’s wallet was created and maintained only by the efforts of the community. The wallet has became very popular after the completion of the ICO, due to it combining two key factors, security and functionality. From the developers and there was no official response to this wallet was not received.
Tezos has now launched a Beta and offers promising changes, especially in their governance. Governance of blockchain networks is amongst some of the most difficult tasks to manage. Creating a sustainable and fair governance mechanism for multiple networks of decentralized users will be challenging.
Many blockchains claim to be a great solution to the problems, like earlier networks such as Bitcoin and Ethereum. While they may provide some unique innovations their verifiable sustainability, security, and practical application have yet to be fully realized. Maybe with a governance mechanism designed to allow the platform to freely evolve, Tezos could potentially provide a new model with on-chain governance with scalable and decentralized networks.
At the time this article was published, Tezos makes up 0.395% of the total of CryptoIndex portfolio.
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