Tezos’s Arthur Breitman on how blockchains can enhance financial infrastructure for more diverse businesses.

Tezos's Arthur Breitman on how blockchains can enhance financial infrastructure for more diverse businesses.

The Future of Crypto: Insights from Tezos Co-Founder Arthur Breitman

Tezos, an open-source blockchain launched in 2018 as an alternative to Ethereum and other layer-1 blockchains, has gained popularity for its unique governance system. Unlike other protocols that are susceptible to forks, Tezos allows tokenholders to vote on proposed amendments, ensuring a more decentralized and inclusive decision-making process. This innovative approach has made Tezos one of the most popular networks in the crypto space.

In a recent interview with ANBLE, Arthur Breitman, co-founder of Tezos, shared his thoughts on the increased involvement of traditional financial firms in the crypto industry, the limitations of Ethereum and Bitcoin, and the future of Tezos. Here are the key insights from the interview.

A Multidisciplinary Approach to Blockchain Governance

Breitman’s background in computer science, applied mathematics, and quantitative finance played a significant role in shaping Tezos. He brought his expertise in financial engineering and macroeconomics to the development of Tezos, ensuring that the blockchain incorporated basic financial principles often overlooked by other projects. This multidisciplinary approach helped Tezos avoid common mistakes and design a robust blockchain system.

Tezos introduced a governance mechanism in its blockchain, allowing participants to vote on proposed amendments. This formal governance process enables the network to incorporate new technologies and innovations while maintaining decentralization. Breitman’s vision for Tezos was to create a blockchain that truly addresses the social and institutional problems associated with traditional financial systems.

The Evolution of the Crypto Ecosystem

Over the past decade, the crypto ecosystem has undergone a significant transformation. It has transitioned from being strongly ideological to focusing on practical solutions for real-world problems. Breitman believes that the real value proposition of decentralized blockchains lies in their ability to provide alternative institutions and disrupt established systems. While traditional financial firms entering the crypto space can bring more people and investments, their primary motivation might be efficiency or distribution rather than disruptive innovation.

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According to Breitman, the true potential of blockchain networks lies in empowering players who are not established in the traditional financial industry. For these players, blockchain technology offers a trustless system that can solve their problems without relying on the trust of customers. While big institutions can benefit from blockchain, the real beneficiaries are those who can leverage the disruptive power of decentralized networks.

Technical Advantages of Tezos over Bitcoin and Ethereum

Breitman highlighted the technical advantages of Tezos over Bitcoin and Ethereum. He emphasized that Tezos has superior technology in terms of speed, scalability, and robustness. While Bitcoin and Ethereum have stronger brand perception and market reach, Tezos’ technical superiority positions it as a strong competitor in the crypto space.

Additionally, Tezos’ governance model fosters a culture of innovation. The community-driven voting process has led to 14 successful upgrades, showcasing the dynamic advantage of Tezos over its competitors. In contrast, Bitcoin’s cultural norms against implementing innovation have resulted in stability but limited progress. Ethereum’s delay in adopting proof of stake has also hindered its ability to keep up with advancements in the blockchain industry.

The Importance of Throughput and Sustainable Fees

Improving throughput is a critical aspect for blockchain networks. Tezos aims to provide the technology required to support use cases that require high transaction volume. Currently, the industry lacks the ability to scale effectively, preventing the realization of these use cases. Tezos’ goal is to overcome these limitations and enable the growth of applications that demand large throughput.

Furthermore, Tezos has already demonstrated lower transaction fees compared to Ethereum. However, Breitman acknowledges the need to assure users that fees will remain low as adoption increases. Ensuring sustainable fees is crucial for attracting developers and organizations to build on the Tezos network, providing a viable alternative to incumbents with high fees.

The Future of Finance: A More Inclusive Global System

Breitman envisions a future financial system that goes beyond the limitations of current markets. Traditional markets often lack a wide range of assets and alternative investment opportunities. Blockchain technology can improve financial infrastructure, enabling a broader array of businesses and assets to thrive. Additionally, greater transparency provided by blockchain solutions can make it easier for businesses to attract external investors.

Furthermore, Breitman anticipates a more global financial system that is not solely focused on developed markets. Many interesting assets outside of the developed world are currently difficult to access, but blockchain has the potential to bridge this gap and create a more inclusive global marketplace.

In conclusion, Arthur Breitman’s insights shed light on the unique attributes and advantages of Tezos as an open-source blockchain project. With its governance mechanism, technical superiority, and focus on real-world problem-solving, Tezos has emerged as a significant player in the rapidly evolving crypto landscape. As the industry continues to mature, Tezos is poised to contribute to the transformation of finance and usher in a new era of decentralized and inclusive systems.