By Shelly Melancon (Switzerland)
Popular decentralized layer one blockchain, Tezos, has announced the launch of its 9th upgrade. The upgrade is to scale the network to host more DApps and process transactions faster and without congestion.
The Most Crucial Significance Of This Upgrade
Part of this upgrade involved the introduction of layer two solutions such as optimistic rollups. Hence, Tezos expects that through the introduction of the TenderBake consensus mechanism, there will be lower block times and better finality. Furthermore, more interested firms can become validators since the barrier of entry is now lower, solidifying the blockchain’s decentralized nature.
Following a vote from the Tezos ecosystem, which approved this upgrade, the network will replace its current consensus mechanism (Emmy) with a new one called Ithaca2 alongside TenderBake to help with improved scalability of the protocol.
Other scalability plans that Ithaca2 will introduce are rollups and “pre-checking.” the latter will validate transactions on the Mempool to enhance total throughput. The upgrade also comes with good news for intending validators. Now, there is a 25% reduction in validator requirements. Thus, there will be more validators who can stake the network’s governance token (XTZ).
The Tenderbake And Zk-Rollups’ Effect
As stated in an official press release last week, the introduction of the TenderBake consensus mechanism results in reduced block times. Thus, improving latency and finality. The finality is a feature that defines the quick inclusion of a transaction and permanent record of such transactions on the protocol). Hence, users can expect faster transactions and improved user experience with DApps regardless of the number of users performing transactions simultaneously.
Also read:Arbitron-built layer-2 solutions such as optimistic rollups are expected to scale the number of processed transactions per second by up to 100X. Even though there would still be off-chain processing of transactions through the rollup, those transactions would still be stored on the main chain.
However, rollup off-chain operators (responsible for maintaining the off-chain) only need to include a summary receipt of the transactions on the main chain. Ideally, such a summary should also include the rollup’s new state.
Tezos’ Unstoppable Growth
Following an upgrade last summer (which resulted in the reduction of average block times by 50%), Tezos’ transaction volume has spiked sporadically. As of the beginning of this year, DApp projects on Tezos are more than 100, even if the majority of them are DeFi- or NFT-related.
The rising interest in smart contracts every month has caused a huge increase in smart contract-related projects over the past 12 months, from 100K to nearly 6.3M. Hence, Tezos has capitalized on this opportunity to expand into sports franchises and top brands like Manchester United football club, KIA car brand, and Red Bull racing team. The network considers itself the best network for the Web3 revolution based on its energy efficiency and low transaction fees. The positive news hasn’t had a significant effect on Tezos’ native token price. The token continues to trade in a narrow range around the $3.90 level as of this writing.
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