|Original author(s)||Arthur Breitman, Kathleen Breitman|
|White paper||"Tezos - a self-amending crypto-ledger"|
|Initial release||30 June 2018|
|Latest release||7.4 /|
|Source model||Open source|
|Block reward||40 XTZ|
|Block time||1 minute|
|Circulating supply||756,203,598 XTZ (est. Jan 2021)|
|Exchange rate||US$3.87 (4 March 2021)|
|Market cap||US$2,945,591,981 (4 March 2021)|
Tezos is a decentralized, open-source energy efficient Proof of Stake blockchain network that can execute peer-to-peer transactions and serve as a platform for deploying smart contracts. The native cryptocurrency for the Tezos blockchain is the tez which has the symbol XTZ. As of January 2021, there are over 400 block validating nodes (bakers) on the Tezos network.
The Tezos network achieves consensus using a liquid proof-of-stake model. Tezos features an on-chain governance model that allows the protocol to amend itself when upgrade proposals receive a favorable vote from the community. This feature allows Tezos to avoid hard forks that other blockchains have to contend with.
Tezos has received attention as a blockchain platform for Non-Fungible Tokens (NFTs) due to its Proof of Stake energy efficient algorithm which became a popular topic amid concerns of the energy requirements of alternative Proof of Work platforms. OneOf, a music NFT platform backed by Quincy Jones, as well as Red Bull Racing and McLaren Racing have all selected Tezos to build their NFT platforms on.
In August and September 2014, respectively, Breitman released the Tezos "Position Paper", and white paper. Breitman wrote the two papers under the pseudonym "LM Goodman", in reference to the author of a notorious article in Newsweek magazine claiming to have located Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
Together with his wife Kathleen, Arthur contracted French firm OCamlPro to help develop the software. In August 2015, the Breitmans founded a company called Dynamic Ledger Solutions, to support the project’s development. In April 2017, the Tezos Foundation was chartered in Zug, Switzerland, as a non-profit with a mandate to provide support to Tezos and related technologies.
In July 2017, the Tezos Foundation raised $232 million in a fundraiser and became one of the biggest ICOs of the 2017 cryptocurrency boom. Notably, billionaire investor Tim Draper was a participant in backing Tezos' ICO.
Tezos received media attention for its initial coin offering in July 2017, and for the subsequent public disagreements between its founders and the non-profit Tezos Foundation that was set up to manage the raised funds. Those disagreements led to delays in the deployment of Tezos, which caused investors in the project to bring lawsuits against its founders and the Tezos foundation.
In August 2020, the Tezos founders and the Tezos Foundation settled the lawsuits against them alleging unauthorized sale of a security for $25 million paid by the Tezos Foundation.
In May 2021, OneOf, a music NFT marketplace and backed by Quincy Jones, featuring works from Whitney Houston, TLC, Doja Cat, John Legend, and others announced it would would release NFT collections on the Tezos blockchain.
In February 2019, Elevated Returns (ER), a financial group focused on digitizing traditional financial assets and best known for its tokenization of the St. Regis resort in Aspen, announced that it selected Tezos as the blockchain on which it will offer fully compliant tokenized real-estate offerings to qualified investors.
The primary protocol of Tezos utilizes liquid proof of stake (LPoS) and supports Turing-complete smart contracts in a domain-specific language called Michelson. Michelson is a purely functional stack-based language with a reduced instruction set and no side effects, designed with formal verification in mind.
In Tezos' LPoS model, network nodes that validate blocks and add them to the blockchain —known as bakers— are selected to perform those actions proportionally to their share of rolls of 8,000 XTZ that they put up for stake, and a baker receives staking rewards in the form of newly minted XTZ after successfully validating a block and adding it to the blockchain. Holders of XTZ can delegate their XTZ to bakers to share in the staking rewards that bakers receive. Holders of XTZ who do not stake or delegate their XTZ risk suffering a loss in value due to inflation as new XTZ are created and distributed to bakers for validating new blocks and adding them to the blockchain. The current annual inflation rate is 3.6%. As of January 2021, nearly 80% of all XTZ in circulation were either directly staked by bakers or delegated to bakers for staking.
The Tezos protocol allows itself to be amended by a staged process performed by committing operations to the stored blockchain to submit proposals (intended code changes) and to vote on those changes. If a proposal receives enough votes the protocol updates itself to incorporate the code changes.
The following proposals have been approved to date:
|Name||Approval Date||Brief Description of Upgrade|
|Athens||May 2019||Increased gas limit per block and reduced the roll size from 10,000 ꜩ to 8,000 ꜩ.|
|Babylon 2.0/2.1||October 2019||Introduced a more robust version of the blockchain’s consensus algorithm (Emmy+); simplified smart contract development; refined the delegation process.|
|Carthage 2.0||March 2020||Increased gas limit per block and per operation; improved the accuracy and resiliency of the formula used for calculating baking and endorsing rewards; fixed various small issues|
|Delphi||September 2020||Improved gas costs. Reduced storage costs by a factor of 4 to reflect improvements in the underlying storage layer.|
|Edo||February 2021||Adds two major features: Sapling and BLS12-381 to enable privacy-preserving smart contracts and tickets for native permissions. Updates amendment process by lowering period length to 5 cycles and adding a 5th Adoption Period. Also includes minor Michelson improvements.|
|Florence||May 2021||Increased Maximum Operation Size to 32kb. Changed from breadth first to depth first execution order. Removed test chain from future voting processes. Baking accounts were proposed in an alternate Florence proposal but that implementation didn't make it past proposal due to some potential interruptions to some contracts in place today.|
|Granada||TBD||Halve the time between blocks from 60 seconds to 30 seconds. Allowing liquidity baking and incentivizing large amounts of decentralized liquidity provision between tez and wrapped bitcoins. Substantial improvements to performance have been made, which in turn result in dramatic reductions in gas consumption.|
In March 2019, the audit company Least Authority published the results of 5 checks, performed for Tezos Foundation during 2018.
With high probability, Tezos protects against chain reorganizations and selfish-baking, which are 2 common issues in blockchains using Nakamoto style consensus. A subsequent analysis confirms that selfish baking in Tezos results in insignificant profits, even when the baker attempting it has a very large portion of the stake .
|book-title=ignored (help)CS1 maint: DOI inactive as of May 2021 (link)