Blockchain technology’s potential to solve existing issues and realize substantial efficiency is not limited to the financial field. A lot of projects have appeared in recent years, and the possibilities they offer are attracting attention. This article will introduce Tezos.
What is Tezos?
Tezos is a proprietary new blockchain developed to solve the problems of existing blockchains, such as Bitcoin and Ethereum. Many of the existing block chains put emphasis on the decentralization of approval (“consensus”) for transaction records, while placing no emphasis on governance, such as the robustness of the blockchain itself and improvements to reliability. In contrast, Tezos has developed “decentralized governance.”
Problems of system modification by conventional hard fork
EFor many existing blockchains, updating by fork (branching) is necessary when modifying the system due to bugs or other problems. Forks for which compatibility is not guaranteed before and after an update are called “hard forks.” In the case of a hard fork, if there are nodes that will continue to use the old version, the old and new versions will continue to exist as two separate chains, each of which will never intersect forever. It can be said that this typical example is a division with Ethereum Classic during Ethereum’s hard fork during the DAO incident in 2016.
Many of the system modifications of current blockchains are completed by volunteers without compensation. There is no financial incentive to correct problems even if bugs are discovered. Although there is no monetary incentive, such fixes lead to improvement of reliability and consequently benefit the entire community. Ultimately, the robustness of the chain depends on development teams focused mainly on system modification.
Since the two split chains have adopted basically the same system, various problems can occur. For example, immediately after the hard fork, remittance of both Ethereum and Ethereum Classic on Ethereum Classic.
What is Tezos’ solution?
Tezos, on the other hand, was developed with the aim of creating a system of modification not dependent on a fork. Network protocols, transaction protocols, and consensus protocols are independently incorporated in the Tezos blockchain, so that compatibility between old and new versions is always maintained even when there are system changes due to updates.
When modifying the system in the Tezos blockchain, a majority vote consisting of approval/consensus of each node is carried out. Specifically, by adopting a voting system called “Tutarchy,” it is possible to make quick and collective intelligent decisions while still maintaining blockchain dispersibility.
In addition, Tezos plans to promote governance of the system itself and its diversification by setting monetary incentives for centralizing system governance. Essentially, if you discover a bug in the system, fix it and submit your improvement, you can earn a reward.
Web Site https://www.tezos.com/
Position Paper https://www.tezos.com/static/papers/position_paper.pdf