While blockchains offer financial incentives to maintain a consensus of their ledgers, no blockchain has a mechanism that amends the rules governing its protocol and rewards protocol development. As a result, Tezos was developed to change the process of the blockchain mechanism to amend rules governing its protocol. Tezos is a decentralized blockchain that governs itself by establishing a new and true digital commonwealth. Tezos facilitates formal verification, a technique that the blockchain uses to mathematically to prove the correctness of the code governing transaction in order to boost security of the most sensitive and financially weighted smart contracts
To solve the problem in the blockchain industry, Tezos take a fundamentally different approach. It is creating governance rules for stakeholders in a bid to approve of protocol upgrades deployed on the network. The platform instantiates new technical innovations and enforces other types of constitutionalism through the use of formal proofs.
Tezos seed protocol
Just like other blockchains starts from a genesis hash, Tezos starts with the seed protocol. The protocol reflects virtually any blockchain based algorithm. The seed protocol has three major features. They include:
The proof-of-stake mechanism includes proof-of-burn, slasher and chain of activity. Random stakeholder mine each block. The blocks include multiple signatures of the previous block provided by random stakeholders. The proof-of-Stake mechanism also includes a clock and generating a random seed.
Tezos uses stateful accounts and contract type. The account executable code is known more generally as contracts and since the accounts are a type of contracts. Each contract has a “Manager”. The origination operation is used to create new contracts and a transaction message is sent from one contract to another.
The Tezos economy is maintained by the coins, mining and signing rewards, and amendment rules, among others. There are initially 10 billion coins available. Tezos relies on the combination of rewards and bonds on transaction cost. Bonds are one year, after which a reward along with a bond is given to miners for their opportunity cost. The purpose of the bond is to diminish the amount of reward needed and use the loss aversion to the advantage of the network.
Tezos tokens are power smart contracts in the network. The tokens allow users to vote on protocol amendment the platform. The initial Tezos rollout is by design. It self-amending nature means that rules governing the network will be improved over time.
For more information please go to Tezos.