Tezos officially launched its mainnet on Monday, September 17, signifying the end of the beta testing phase of the world’s first “self-amending” cryptocurrency. According to the press release, the Tezos Foundation had to take care of certain issues after the genesis block commenced the beta phase in June. These included issues of unscheduled downtimes and adjustments. The network’s prowess in handling over 400 validators and building tools to help increase community engagement over this period, has driven the move to launch its mainnet – ready for adoption and use.
According to the network, the mainnet launch does not signify a complete overhaul of the Tezos blockchain. Meaning, there are no big changes to either the network or the development of new features. But some minor impacts were felt before and after the mainnet launch. The price of Tezos skyrocketed more than 30 percent after the foundation announced the launch of the mainnet a week earlier. Data from CoinMarketCap indicated that its price rose from $1.30 24 hours before the declaration to $1.66 a day after.
One week after the launch, the Tezos blockchain seems to be doing fine. In a tweet, Emin Gun Sirer, Professor at Cornell University and an advisor to Tezos congratulated the project for the mainnet launch with the word “uneventful”.
Congrats to the @Tezos team on their mainnet going live!
Looking to see how the system will fare through the first day. "Uneventful" is the best word in the dictionary as far as launches go.
— Emin Gün Sirer (@el33th4xor) September 17, 2018
So far, the network is doing well, with Tezos scan registering a new block every minute.
The future of the Tezos Network
Tezos is a smart contract ready ecosystem built for decentralized applications. Designed to be a self-amending blockchain network, its infrastructure utilizes a special kind of Proof of Stake called Delegated Proof of Stake (DPoS). The consensus mechanism provides all members of the network an equal chance of authenticating transactions. The Tezos blockchain is also able to adapt over time as a result of its communal governance arrangement.
Though the network promises to deliver a special kind of ecosystem for building dApps, it’s had a rough journey. After launching its mainnet on Monday, the price of XTZ dropped drastically, erasing $170 million from its market cap. Earlier, founder of the Tezos network Arthur Breitman was slapped with a $20,000 fine by US authorities for his failure to disclose his relationship with the project when he was at Morgan Stanley.
Months after the closure of the Tezos ICO, investors were still waiting anxiously and angrily for their tokens. While that was being worked on by the team, a lawsuit was filed against the foundation for selling unregistered securities. Shortly after, Johan Geevers, CEO of the Tezos Foundation who had also engaged in a long-standing dispute with Breitman and his wife, was forced to leave in February.
Nevertheless, the Tezos network seems to have a bright future ahead. Its ICO was one of the best in 2017, raising $232 million, cementing it as the 8th largest in the history of initial coin offerings. Additionally, just after the lawsuits, Ryan Jesperson’s takeover as the new lead brought in major improvements, including a partnership with the ‘big four’ auditing firm PricewaterhouseCoopers (PwC) – which have helped the foundation repair its reputation.
Consequently, giving itself up for an audit, tightening its investor requirements, and the mainnet launch are proof that the new leadership is going to spearhead the foundation in the right direction and put it on a path to success, both on a development and internal leadership perspective. Furthermore, from the camp of the ordinary developer or crypto enthusiasts, who are mostly chasing the robustness of the platform, this would be the time to get involved. Hopefully, these developments will enable XTZ tokens to be listed on more exchanges, which will increase their usage and subsequent price upsurge. But as Tezos braces itself for the future, how would the competition mean for the foundation and the network — especially for platform-based decentralized systems that rely on DPoS?
What Is The Future of Delegated Proof of Stake as Tezos takes off?
For the cryptocurrency ecosystem, consensus is a hot topic that is not going away anytime soon. With the attendant problems of consensus and blockchain governance in PoS, many projects have sort to use Delegated Proof of Stake. Tezos is an addition to the many that see the future of DPoS as the ideal mechanism for crypto and blockchain governance. Examples of DPoS-based platforms include EOS, Steem, and Lisk, etc.
For one thing, the future of DPoS is bright. Beyond the many projects that are geared towards using this consensus mechanism, DPoS has the capability to scale to higher levels than currently available mechanisms. DPoS’s real-time voting, a reward system for block producers, and reputation criteria for achieving consensus give power to stakeholders who are capable of voting to decide on who produces blocks and who doesn’t. Essentially, as mining in Proof of Work (PoW) is eliminated, minor fork debates become a thing of the past under DPoS, and makes it better, in many cases, compared with PoW.
On a different note, Delegated Proof of Stake is not for every system. Trading decentralization for scalability might not work in some systems, especially for a platform like the Bitcoin network, where decentralization is a necessary factor for secure operation.
In conclusion, DPoS may not be good for every project, but perfect in certain situations. And as many projects have been successfully launched and operated with this consensus mechanism, it is bound to become a governing principle for many blockchain projects – Tezos is already doing well with it.
Featured image from Tezos