Tezos, Smart-Contract Blockchain of ICO Fame, Reveals Roadmap to Rejuvenate

Over the next two years, the development plan outlined in our roadmap proposes a significant change: separating transaction execution from the main Tezos blockchain to create a new “canonical rollup.” This new component will enable “atomic transactions” between smart contracts built using different programming languages. The primary function of the Tezos blockchain will remain as the foundation for consensus and settlement processes.

The post was co-authored by developer teams from Nomadic Labs, TriliTech and Functori.

In 2017, Tezos, co-founded by Arthur and Kathleen Breitman, set a new fundraising record with an impressive $232 million raised during its initial coin offering (ICO). At one point, this innovative smart-contract platform was viewed as a formidable Ethereum rival.

Despite facing challenges, the project’s market capitalization hovers around $749 million, placing it approximately as the 80th largest cryptocurrency project according to CoinDesk’s latest data. The native Tezos (XTZ) token currently stands at a significant discount, having dropped by nearly 92% from its all-time peak.

In 2022, developers started pushing to scale up the Tezos network, according to a blog post.

The heart of this approach lies in the implementation of Smart Rollups. This is a scaling technique in which an efficient and specialized second layer handles transactions, ensuring that the primary layer-1 blockchain continues to secure consensus and process settlements. (Source: post)

Another key feature is a dedicated data-availability layer on the Tezos main network.

As an analyst, I’ve noticed a striking similarity between the latest roadmap and Ethereum’s scaling efforts over the past few years. Instead of executing transactions directly on the main Ethereum chain, there’s been a shift towards offloading this function to secondary layer-2 networks. Additionally, new “modular” components have emerged to manage other functions previously handled by the primary Ethereum chain more efficiently, such as extensive data storage.

To preserve decentralization and accommodate growth, Tezos has transitioned from a single, unified system to a multifaceted one. In this new setup, clusters of nodes assume distinct functions, yet present a seamless interaction for developers and end-users. (Source: post)

“Unlike Ethereum where transaction execution can be managed by several layer-2 networks, Tezos has a unique approach where a single rollup could take care of handling all transactions.”

According to the post, in practice, a single rollup should be sufficient to address the needs of most use cases on the Tezos network. The goal of Tezos X is to develop such a rollup that can effectively manage and significantly scale all the transactions on Tezos.

Under the plan, the canonical rollup is expected in 2026.