Tezos (XTZ) is a unique blockchain platform that differs from other blockchains in its self-managed source code. Launched in 2018, Tezos provides a mechanism to update its protocol without the need for branching. This mechanism is based on the principles of self-government and voting for changes in the network.
Tezos Self-Government
1. Delegated Proof-of-Stake (DPoS)
Tezos uses the Delegated Proof-of-Stake (DPoS) algorithm, which differs from the traditional Proof-of-Work. In DPoS, XTZ coin holders can delegate their coins to validators who will produce blocks. This provides higher scalability and efficiency, since solving mining tasks is not required.
2. Self-Managed Protocol
One of the key aspects of Tezos is its ability to manage itself. The Tezos protocol can be updated and improved without branching the blockchain. This is achieved by introducing voting among XTZ coin holders. In this way, the network can evolve according to the needs and technical requirements proposed by the community.
Voting Mechanism
1. Voting for Protocol Updates
The key point in Tezos self-government is voting for protocol updates (amendments). When a new protocol update is proposed, XTZ coin holders have the opportunity to decide on its implementation. To participate in the voting, coin holders can use their tokens or delegate their voting rights to other participants.
2. Support or Reject Changes
Voting takes place within a certain time, and coin holders decide to support or reject the proposed changes. If the proposed update receives a sufficient number of votes in favor, it is automatically implemented into the protocol, which makes Tezos flexible and adaptive to changing market conditions.
Advantages Of The Tezos Update Mechanism
1. Avoiding Branching
One of the main advantages of Tezos is that the network avoids branching, which can lead to the creation of alternative block chains. Voting ensures the unity of the network, and protocol changes are implemented without conflict.
2. Community of Participants
The voting mechanism encourages the active participation of the community in the development and improvement of the network. This creates a favorable environment for the exchange of ideas, suggestions and discussion of changes.
3. Quick Changes
Thanks to self-management and voting, Tezos can quickly respond to new technological requirements and implement changes without the need for long and complex development processes.
Challenges and Prospects
1. Centralization of Voting
One of the challenges for Tezos is the risk of centralization of voting, especially with long-term delegation of voting rights. This issue requires constant monitoring and efforts to maintain decentralization.
2. Participation Of Coin Holders
The active participation of coin holders is important for a successful voting system. Problems with low activity can slow down the decision-making process.
Examples of Tezos Applications in the Real World
1. Nomadic Labs and Marigold
Nomadic Labs is a French company that is actively involved in the development of the Tezos protocol. They have proposed and implemented several updates such as Delphi, Edo and Florence. Marigold is a project designed to improve network performance and optimize the Tezos protocol.
2. Tokenization of Property
Tezos is used to tokenize various assets such as real estate. This simplifies ownership processes and makes it easy to transfer assets.
Conclusion
Tezos is an innovative blockchain platform that provides self-governance and voting for protocol updates. The voting mechanism among coin holders makes Tezos flexible, efficient and promotes network unity. Despite the challenges, Tezos continues to be a pioneer in the field of blockchain technology, providing unique solutions to create a long-term sustainable and developing ecosystem.