Tezos: A threat to Ethereum?

Still Etherum dominates the Smart-Contract-world. But the competition is not sleeping. Tezos is trying to make some things better than the head of birth Vitalik Buterins. The largest Bank in South America has given Tezos as a platform for Security Token Offerings to Ethereum already the preference. Tezos – a threat to Ethereum?

By Christopher clover
16. August 2019BTC$9.697,19 -8.62%part Facebook Twitter LinkedIn xing mail

A majority of the Altcoins – especially the Token has taken his source is, as ERC-20 tokens on the Ethereum Blockchain. Ethereum has extended the crypto-Space to a Turing-complete programming language.

"Solidity" allows the use of so-called Smart Contracts. It is programmed contracts between two or more parties that can be met after the Occurrence of predefined conditions, and without the need for a Central control instance. The (Non-)execution of Smart Contracts is to ensure, instead, in a decentralized manner by the whole of the Ethereum network.

The Consensus is in the case of Ethereum yet, as in the case of Bitcoin, by means of a Proof-of-Work. Numerous Bitcoin imitators were only through the creation of Ethereum, the second largest in the Blockchain Ecosystem, feasible. But Ethereum is not unrivaled. Younger Ethereum-competitors from the beginning to Proof of Stake. Among the projects, the want to encounter Ethereum from the Pedestal, among other things, the Tezos network.

Tezos was developed by Dynamic Ledger Solutions as an Alternative to Ethereum. The project was able to collect in 2017, with a record-breaking ICO 223 million US dollars. Tezos has a number of unique features, which should make it stand out from the competition.

Tezos: No risk of Hard Forks

A distinctive feature of the Tezos Protocol is in the way of its further development. This is supposed to get, unlike other public block chains, without any Hard Forks. Hard Forks arise, for example, if in a decentralized network, no agreement on an update of the underlying Protocol succeeds. It comes to a permanent split in the Blockchain, sometimes with serious consequences for the crypto-Ecosystem, radiate, often also to the Rest of the crypto-Universe.

Tezos tried, however, to prevent malicious or unplanned hardware Forks:

Tezos can update a log of internal process of Change without a Hard Fork is required. This is done to accelerate innovation and to reduce the likelihood of contentious divisions, and to coordinate stakeholders within a network over a long period of time,

it is stated on the Homepage of the project. As is the case with Bitcoin and Ethereum developers have the option to leave the network via improvement suggestions to the vote. While Proof-of-Work based Blockchains to decide, however,, ultimately, the computing power of the miners on the Assumption of a Change, take the case of Tezos, the so-called "Baker".

"Baker" is the name for Block-producers in the Tezos network. To come as the Baker in question, you must have a network participant or node (Node) a Stake of at least 10,000 units of the Tezos used crypto-currency XTZ. The larger the Stake, the higher the probability, as a Baker, the Block will produce and the associated reward is.

the network participants with less than 10,000 XTZ can give their XTZ to Baker, to be indirectly involved in the verification of blocks involved. Developers can submit suggestions for improvement and with a price tag. Before a Change in the Mainnet has a 48-hour Test on a "Test-Fork". Then the Baker to decide in a further vote on the Adoption of the Updates. In principle, a decision of at least 80 percent of the voting must Baker be worn.

Mathematical verification of Smart Contracts

Smart Contracts on the Tezos Blockchain should be a mathematical process of formal Verification it very secure.

to test, for example, if a program sorts a list of Numbers correctly in ascending values, it is tested with an input of [2, 3, 1]. The output of the Tests should result in [1, 2, 3], otherwise the program is invalid.

[This] approach can, however, cover may not be all of the possible inputs (or Edge Cases), and this can bring a program to Fail.

the formal Review is to be written mathematical definitions of the program. To use the same example as above, one can write a Definition: "Ask for each Element j in a list, make sure that Element j ≤ j+1".

it is stated on the information portal of Tezos. This universal validity of the Tezos Smart Contracts to manufacture for applications in the financial sector, an extra level of security.

This has the Background that Tezos get involved want to with Security Token Offerings – yet still dominated by Ethereum–. In the case of the largest Bank of South America, BTG Pactual, managed Tezos in July, to displace Ethereum as a STO platform. Whether Tezos can run the previous industry leader in the long term, the rank, of course remains to be seen. In the ideal case, the entire crypto will benefit-Ecosystem of the battle of the STO-dominance, because competition is known to the business.

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