invezz.com
Tezos (XTZ-USD) has activated its long-awaited network upgrade, unleashing a revolutionary consensus algorithm set to improve the Proof-of-Stake (PoS) blockchain’s scalability.
The blockchain’s ninth upgrade introduced “Ithaca 2,” a network change that sees Tezos replace its “Emmy” algorithm with ‘Tenderbake.’
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This new technological tweak to the previous algorithm allows for lower block times, which among other benefits, means faster transactions. Further scalability will come in the form of rollups for WebAssembly and compatibility with the Ethereum Virtual Machine (EVM).
Ithaca 2 also reduces validator (baker) requirements on the Tezos network, allowing for further decentralisation. With this upgrade, for example, one can now become a baker with 6,000 tez and not 8,000 tez. (This is after a 25% cut in the number of XTZ tokens needed for one to be a validator).
Over the last year, @Tezos has seen booming growth in user activity, with smart contract calls increasing per month from 100k in Jan 2021 to over 6.2m in Jan 2022.#Tezos developers aren’t waiting for Proof-of-Stake, they’re building on it.
— Tezos (@tezos) April 1, 2022
After this upgrade users will also find that applications run more smoothly.
An ‘evolving’ blockchain
According to a press release shared with Invezz, the upgrade comes after a vote by the Tezos community as part of its advanced governance system.
With this ‘evolving’ framework in place, Tezos can introduce cutting-edge technologies and integrate others from across the blockchain ecosystem. Proposals are voted on by the community, including those that saw Tezos introduce shielded transactions from Zcash (ZEC).
In March this year, the Tezos developer team outlined proposals aimed at introducing optimistic rollups based on the popular Ethereum solution Arbitrum. This week’s Tenderbake is an update based on Cosmos (ATOM)’s Tendermint algorithm.
Scalability, energy efficiency and low-cost transactions are all possible on Tezos, making the platform one of the top destinations for institutions. The platform offers access to the latest in digital assets, including decentralised finance (DeFi), non-fungibe tokens (NFTs), esports and Web3 integrations.
Recent top partnerships and integrations include with Red Bull Racing, Kia, evian, Manchester United and Team Vitality.
In the market, XTZ price currently hovers around $3.87 after retreating from a seven-day peak of $4.07. The token is trading -3.3% in the past 24 hours.