It was the second largest ICO of 2017 and it took nearly 12 months, a class action lawsuit, a PR nightmare and numerous delays, but Tezos has finally announced the launch of its betanet.
The Tezos foundation has also finalised some of the details in relation to its genesis block, adding that users will be able to validate blocks after seven cycles are completed, in about three weeks’ time.
— Tezos Foundation (@TezosFoundation) June 30, 2018
The mainnet will be launched when the betanet has matured and is stable, but any transactions that occur on the betanet will remain on the blockchain. The team have pointed out that, whilst upgrades are made, bugs are fixed, and the codebase is validated, the betanet may experience periodic downtime.
Another Ethereum Killer?
Tezos is essentially a smart contract platform with a few unique features. It includes an on-chain governance model which will allow any user to propose improvements to the protocol, and if the network reaches consensus the upgrades will be made.
The consensus algorithm uses Delegated Proof-of-Stake (DPoS). Network validators – or bakers as they are referred to – must stake 10,000 Tezzies to participate in the validation process. Bakers are paid out through a process that inflates the token supply by 5.5 percent every year.
The ICO held in July last year raised $232 million, at the time the largest amount raised by an ICO. Because most of these funds were raised in cryptocurrencies, the project was worth considerably more by the end of 2017.
However, the ICO immediately ran into problems starting with a power struggle between the original founders and the head of the Tezos foundation. This was followed by a lawsuit in which the SEC which alleged that the ICO contravened securities laws and a class action lawsuit by investors.
However, the original founders, Kathleen and Arthur Breitman, got the project back on track in February. This was after Johann Gevers, the controversial head of the Tezos foundations agreed to step down and investors dropped their lawsuit.
EOS, another ‘Ethereum Killer’ launched just a month ago and has itself been plagued by governance issues which, at the time of writing, are still waiting to be resolved. Crypto investors and analysts will be watching carefully to see if Tezos can now leave behind its previous issues to deliver on a project which had generated so much interest in the first place.