Tezos is an open-source blockchain platform that supports self-upgrades, tailored for developing and managing decentralized applications and assets. Stakeholders of Tezos are charged with overseeing protocol upgrades, including changes to its governance process. This article outlines the key information about Tezos, its history, and its unique governance system.
Quick Look at Tezos
Tezos was developed as a cryptocurrency that empowers any holder of its XTZ token to vote on prospective changes to the network's rules. After achieving consensus on these changes, the software automatically updates the rules across all nodes, effectively placing the direction of Tezos’s future in the hands of its users. This governance system enhances user engagement and satisfaction, significantly reducing the likelihood of a hard fork.
Project History
Tezos was created by Arthur Breitman, a former Google X and Waymo engineer, and his wife Kathleen Breitman, who previously worked at Bridgewater Associates and R3. In 2014, while still at Morgan Stanley, Arthur wrote a white paper under a pseudonym that laid out the fundamentals of Tezos. In July 2017, the Switzerland-based Tezos Foundation and the Breitmans launched one of the most successful ICOs in history, raising $232 million. Despite legal and management challenges, the project has reached significant milestones and attracted attention due to its staking mechanism.
How Tezos Works
The Tezos blockchain supports various features typical of cryptocurrencies. Developers can leverage its software to execute custom programming logic (smart contracts) and create new programs (decentralized applications). The main architecture of Tezos is divided into two components: Shell (updates the code according to user votes) and Protocol (handles the proposal of changes). Tezos also uses a modified proof-of-stake system (Liquid Proof-of-Stake), where users participate in voting and upgrades by locking XTZ in special contracts.
Tezos remains one of the most successful cryptocurrencies due to its unique governance system and integration with decentralized applications. Stable operation and active user participation have allowed Tezos to stand out among other blockchain platforms. The future looks promising for Tezos with its functional capabilities and support for new initiatives.
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