/biz/ - Business & Finance

So I've been in crypto for a few years now and Tezos has particularly caught my attention.

I thought it could be interesting to share my views on why I think Tezos will be highly successful, while hightlighting a few weaknesses that may get in the way of that success. Could be a good way to share views and opinions.

So, you all know trade-offs are to be made when you design a blockchain protocol. You either prioritize scaling over decentralization or decentralization over scaling, at least on the blockchain layer.

Scaling has been a hot topic in the last few years, which led some projects to heavily focus on that, either Bitcoin with SegWit LN and other solutions in the making, Ethereum with sharding and plasma, or new blockchains protocols like EOS. Now, LN or plasma doesn't affect censorship resistance or security because they are layer 2 solutions, but for layer 1 scaling solutions the trade-off is huge because the protocol gets much more centralized and much less censorship resistant, making it a poor store of value.

That said, I think blockchains are a viable option for your product if and only if you need censorship resistance through decentralization. If not, then use another kind of database that's going to be much more efficient.

Which is why, from what i've learn, the number one thing blockchains are good at is:

Censorship resistant incentive models

In my opinion, this is the true value of blockchain tech. It doesn't get better than that. If you create a network of value that is designed to gain value overtime and put it out their in the wild, people are going to join in, because you can build better models that whats available in the traditionnal world, and everyone can have access to them with a simple internet connection.