July 16, 2018
Note: I haven’t completed my analysis on this coin. But since I’m not continuing anymore I figured it is better to save & opensource my analysis rather than delete it.
- Competitor of ETH
- Wrote its whitepaper in 2014
- Has 2 advantages when compared to ETH
- Stakeholders can vote for the adoption or rejection of various amendments in the protocol, including amendments to the change of the consensus protocol itself
- Turing complete programming language of smart contracts “Michelson”, which allows implementing any functions and supporting formal verification.
- Unlimited token supply
- Tezos is implemented in OCaml
- Tezos’s proof-of-stake mechanism is a mix of several ideas, including Slasher, chain-of-activity, and proof-of-burn.
- The dPoS consensus mechanism allows users to participate in the staking process without having to lock up their tokens.
- Doesn’t need hard forks if the token holders vote to change the protocol
- It runs a proof-of-stake model where it allows XTZ owners to vote on the direction of the blockchain, so theoretically, there is no need to hard fork the blockchain.
In order to receive staking rewards, XTZ owners needs to stake their coins that lasts one cycle, or roughly 3 calendar months. Staking reward is initially set at 33% a year, and will be gradually lowering to prevailing interest rate. Coin inflation is tentatively set to 5% a year.
- Winklevoss Twins have added Tezos to their portfolio. They have Ethereum & Zcash in their portfolio and since they own gemini which only trades BTC/ETH/ZEC it wouldn’t be too far off to say they will list XTZ(Tezos) to their exchange.
- The advisers of the project include such experts as Zooko Wilcox, the leader and founder of the project Zcash, and Emin Gün Sirer, a specialist in distributed databases (P2P).
- Polychain Capital invested in Tezos & Olaf(founder of Polychain) is advisor to Tezos.
- Users have to learn a new programming language to build smart contracts on Tezos
- Poor communication with its userbase/followers
- Mainnet was late for 6+ months which is normal, but they should have estimated an extra year for it.
- Really slow development. Ethereum was proposed in 2013, fundraised in 2014 and was live in 2015. Tezos released their whitepaper in 2014 they raised capital from VCs, their ICO was in 2017 and their mainnet came in 2018. This clearly shows they are having a hard time keeping up.
- Developers can suggest upgrades to the protocol which is nice but in OCaml language where almost no developer uses it. So they are kind of losing their advantage by using OCaml.
- It is definitely going to be added to multiple exchanges. Olaf could get it added to Coinbase while Winklewoss Twins can get it added to Gemini. Each new exchange may pump the price of the coin.