Tezos Review Jan 2020

Tezos $XTZ

$924mil Market Cap

Volume: 25% OKEx, 17% MXC, 15% Binance, 5% Coinbase Pro

Liquidity: 50% Binance, 20% Coinbase, 15% OKEx
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Tezos started with a whitepaper in 2014 after several year of philosophical and scientific debate between founders Arthur and Kathleen Breitman. 

Arthur’s past experience as a research engineer for Google X and Waymo along side his time with Goldman Sachs and Morgan Stanley drove his passion for a blockchain that does not suffer the setbacks of Bitcoin.

Kathleen approached with a slightly different but equally significant back ground with R3 CEV and Accenture.  She also had time as a Management Associate at Bridgewater Associates.

With the foundation set and the vision of a open-source platform for assets and application backed by a global community of validators, researchers, and builders.  The platform would be governed by itself through “true digital commonwealth” and the world’s “first self-evolving blockchain”.
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The idea was settled but research and development needed to be backed by equally ambitious funding.  After approaching traditional banks and flopping they turned to an ICO in 2016.  This ICO ran for nearly half a year with limited success, just $612,000.  Not nearly enough raised the development continued and in the peak of the 2017 ICO craze another offering was made and this time it would be different.  The 2017 ICO would raise a record setting $232 million in less then two weeks.
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Tezos appeared to be the new leader of the blockchain revolution.  Everyone wanted a piece, and some felt they were entitled to more then they were given.  There was a whirlwind of personal, professional and legal controversies.

Intellectual Property rights, internal team power struggles and even legal issues arising from the now well known traditional regulatory KYC/AML laws.  These events unfolded for more then a year after the massively successful ICO and publicly destroyed the reputation of the project and it’s team.
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The technical architecture of Tezos was quite different then other blockchain of the time.  More complex and modular it ran over the “Network Shell”, a 3-layer set of separate blockchain protocols:

The Network Protocol – The Network Protocol is known as the “Gossip Protocol” is the way how transactions are shown across the network between nodes.  This also includes Downloading the blockchain, Broadcasting Blocks to Networks, and Detecting Peers.

The Transaction Protocol – he Transaction Protocol is explained by the scripting language used in developing Cryptocurrency. For example, Unspent Transaction Output Model (UTXO) in the case of Bitcoin.  All changes made in this protocol are “Soft Forks” which does not affect the consensus algorithms and thus does not splits the chain into two different chains, as compared to “Hard Forks”

The Consensus Protocol – The Consensus Protocol is a smart way used in the Blockchain technology to reach consensus across all the nodes in the network. For example, Bitcoin uses Proof-Of-Work (POW) as it’s consensus mechanism. Tezos uses an advanced form of Proof-Of-Stake model known as “Delegated Proof-of-Stake”

Functionality of the platform is also recognized in several separate operations:

The Node:  The connection of the network, these verify all transactions and connect to the global distributed public ledger.

The Baker: The baker builds and validates blocks.  It is essentially the “miner” in this unique Proof-of-Stake blockchain.

The Client: The client offers a higher level and niche interface to the node and the protocol.  Storing keys, tracking contracts, send transaction, type checking and tracing of smart contracts are just a few of its functions for Tezos.  There is also a version of this called an “Evil-Client” that challenges the network and is used mostly for testing.
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With the MainNet launch in September 2018 a change of sentiment followed.  Tezos had done it, the adaptable platform built on slow and steady scientific and professional growth was a reality.  This realization did not go un-noticed.  Listings by Bitfinex, Kraken and Cobinhood made headlines as 2018 came to a close.  Through 2019 other major exchange also took notice and got on board including Coinbase Pro, Binance, OKEx and others.

Signing on with South America’s 3rd largest investment bank they locked up a $1bil security-token offering deal.

Wallets, exchanges and even government folked to Tezos to implement their staking feature and provide an incentivized ecosystem for XTZ holders.

Even the French Army began using smart contracts on Tezos just before the end of 2019.
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2019 closed as the most important for Tezos since its inception.  World class partnerships, actual adoption of their smart contracts and platform, massive market growth (XTZ was in the Top 10 by Market Cap in 2019), and the Tezos Foundation took steps to better support their community.

The future is bright for this battle tested project and the year ahead provides an opportunity for Tezos to show the world how this unique new technology can bring efficiency, security and utility to so many industries.


  1. “The Tezos Foundation is in the news after it announced the release of a faucet for the Tezos mainnet, one that allows developers and users to request XTZ tokens for development and testing purposes. According to the aforementioned announcement, the faucet will release 0.01 XTZ every 10 seconds, with the addresses registered added to a queue with a maximum length of 10.

    It also explained how addresses that have been in the queue the longest are positioned at the front of the line and removed once they are through. Further, addresses that have already received XTZ from the faucet will be purportedly blocked for 12 hours, before being re-added to the queue.”


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