Members of the CryptoScores team met with community developers and leaders of the Tezos project to get a better understanding of the excitement behind a project that had some rocky beginnings. To recap for those of you who are unfamiliar with this, Tezos held its ICO on July 1st, 2017. In the 13 day period of their uncapped ICO, Tezos raised $232 million, making it the highest funded ICO at the time. After the ICO was held, the Tezos Foundation decided to perform a “Know Your Customer / Anti-Money Laundering” (KYC/AML) compliance check to make sure that their ICO wasn’t being used to launder money illegally. Investors were growing impatient with Tezos’ delay in its Beta release. After the KYC/AML checks were completed with no abnormalities found, the XTZ were finally released to the ICO investors.
Tezos is best described as a hybrid between Ethereum and Dash. It uses a self-governing liquid-proof-of-stake system where voters can dedicate their votes to designated “bakers” that vote on the Tezos Project’s development. It takes 10,000 XTZ to become a baker, and if you don’t have the money to put down $12,500 to become a baker, don’t worry! You’re able to delegate your XTZ to somebody that does have enough to vote, or you could take coins and vote in lieu of other community members. Bakers are then rewarded for taking part in the voting process of the developments of the Tezos foundation. If you delegated your coins to a baker, you would be rewarded back the percentage of the XTZ you delegated.
The Tezos Community Member was quick to let us know that “everybody else is in test-net or beta-net. You don’t have anybody else that’s a live 3rd generation blockchain.” Tezos also allows smart contracts to be built on top of its ecosystem. This allows for automated escrow without the need of a third party, much like Ethereum. It does, however, use a different development language than Ethereum. The native development language of Tezos is called Michelson, and it is a language developed just for Tezos.
To fill this educational gap of having to learn a new development language, the Tezos Foundation gives grants to developers or development companies, like Cryptonomics, to learn Michelson and develop digital applications on the Tezos ecosystem. “The grants that we receive from Tezos really allow us to focus on developing cool and useful applications”, a community developer from Cryptonomics let us know. “The Foundation plans to have 1,000 new developers learning the Michelson language by the end of 2019, and it is giving out grants to companies and individuals that are willing to partake in the learning process.”
So why should you care about Tezos? Because it isn’t a blockchain trying to solve every imaginable problem, it’s trying to solve a single problem of governance well. On top of this, it allows for the development of digital applications and smart contracts on its ecosystem. Its governance structure is designed to avoid problems that Ethereum and Bitcoin have faced in the past (see Parity Bug), and it looks like this cryptocurrency may be around for a while. But for that to happen, it needs a community to build behind it and its ecosystem needs to be utilized. Given the steps that Tezos is taking to bridge this knowledge gap, it seems like the project will be able to educate people early enough to care.