Research Summary
The report discusses the Tezos network’s technological developments and ecosystem, focusing on the upcoming Tezos 2.0 upgrade, the introduction of smart rollups, and the Etherlink project. The report also reviews the network’s achievements in 2023 and provides an outlook for 2024.
Key Takeaways
Tezos 2.0: A Comprehensive Upgrade
- Tezos 2.0 Overview: The report discusses the Tezos 2.0 upgrade, a scaling roadmap designed to achieve high throughput, low latency, and a better developer experience on the Tezos blockchain. The upgrade is a collaborative effort involving several developer teams worldwide.
- Benefits of Tezos 2.0: The upgrade will provide faster transaction finality, lower latency, and support for new applications as the network’s capacity grows. It will also support smart contract development in various programming languages, including Javascript, Python, and C#, enabling the creation of new EVM-compatible applications.
Smart Rollups: Enhancing Security and Decentralization
- Smart Rollups: Tezos’ smart rollups are optimistic rollups that perform transaction execution and post cryptographic hashes to the Tezos layer 1 for security. They differ from other rollups in that anyone can participate in the fraud detection process, promoting decentralization and transparency.
- Security of Smart Rollups: Smart rollups are enshrined in the Tezos blockchain, enabling more sophisticated security mechanisms. They don’t require a multisig to safeguard against failure and can rely on the Tezos blockchain’s security.
Etherlink: Bridging Tezos and Ethereum
- Etherlink Overview: Etherlink is an EVM-compatible smart rollup on Tezos that supports solidity smart contracts. It is a critical part of the Tezos 2.0 roadmap and is scheduled to launch in March 2024.
- Features of Etherlink: Etherlink will provide fair transaction ordering and censorship resistance, robust security, and MEV protection. It is currently live on testnet.
2023 Achievements and 2024 Outlook
- 2023 Achievements: In 2023, Nomadic Labs demonstrated Tezos achieving 104 million transactions per second, using 1,000 smart rollups and a data-availability solution.
- 2024 Outlook: In 2024, Nomadic Labs and other Tezos core contributors are working on a protocol-level data availability layer (DAL) to actualize the network’s potential for ultra-high transaction throughput.
Actionable Insights
- Monitor the Tezos 2.0 Upgrade: Keep an eye on the progress of the Tezos 2.0 upgrade, as it promises to bring significant improvements to the network’s performance and developer experience.
- Understand the Impact of Smart Rollups: Gain a deeper understanding of how smart rollups work and their potential impact on the Tezos network’s security and decentralization.
- Follow the Etherlink Project: Track the development and launch of the Etherlink project, as it could bridge the gap between Tezos and Ethereum, potentially leading to new opportunities for developers and users.
- Assess the Network’s Performance: Evaluate the network’s performance based on the achievements of 2023 and the outlook for 2024, particularly the implementation of a protocol-level data availability layer (DAL).
