Update: Week of 8 July 2019

Dear Tezos community, It was another big week for the Tezos ecosystem. Last week, we announced that BTG Pactual & Dalma Capital will tokenize a deal pipeline of $1bn USD of assets on the Tezos blockchain. Additional STO deals in various categories are in our pipeline and the Foundation is working hard to advance these. In addition, the Foundation is evaluating a number of strategic investments in companies and projects; watch out for further information soon.

This week, TokenSoft, a leading provider of institutional-grade compliance tools for issuing and managing digital securities, announced support for security tokens on Tezos. Mason Borda, CEO of TokenSoft, specifically cited formally verifiable contracts as a major reason why they chose to support Tezos. These announcements, coupled with the previous Elevated Returns deal, show the strength of Tezos as a platform for tokenized assets and we will continue to work hard to lead this space.

In this week’s FAQ section, we will tackle some of the most pressing questions that we have seen regarding STOs.

Look forward to seeing you all at TQuorum: Berlin and some of the Tezos 1-year celebrations happening this month!

Best regards,

Grantees and Funded Entities

Below are some highlights of the work that Tezos Foundation-funded teams have been doing in the past week:

Our Activities

This week we continued to work hard to provide support to entities looking to tokenize assets on Tezos, review grant proposals, and maintain normal administrative and operational duties. Below are a couple of specific details that we can share:

  • The Tezos Foundation Council has a quarterly council meeting today where a variety of topics will be discussed, including strategy, governance, grant processes, financial matters, etc.
  • Our Ecosystem Grants RFP submission period closed. We had many great submissions and look forward to announcing our next cohort of grantees shortly.
  • Continued to work with the Ledger team on the engraved Nano S giveaway.
  • The Foundation president recorded a podcast with community member, Ken Garofalo, at CryptoLiveLeak. Look for it to be released in the next week or two.

FAQs: Why are so many firms choosing Tezos as the blockchain for their tokenized assets?

The short answer is that: 1) the protocol has many key features that make it ideal for high-value assets that need a secure, reliable, long-term oriented platform, and 2) we are working hard to build tools and provide technical expertise/support to make it simple for entities to issue tokenized assets on Tezos.

Regarding the first point, the two major advantages that Tezos offers over other smart contract platforms are smart contract security and platform longevity.

Michelson, the domain-specific language for writing smart contracts on Tezos, was designed to facilitate formal verification. To quote Mason Borda of TokenSoft on the general idea, this means that “prior to sending a billion dollars over the blockchain, you can run a formal test to simulate it. If anything has changed since deployment (libraries, protocols, etc.), you will know.”

In terms of platform longevity, upgradability and a means to fund development are key. We have spoken at length about Tezos’ governance mechanism, but one feature of Tezos that is often overlooked is inflation funding. If a software upgrade is approved via the Tezos governance mechanism, the new implementation can mint Tezos tokens and issue them to the developer (individual or team) behind the upgrade. This helps mitigate the free-rider problem that open-source projects and other public goods often face. For more on inflation funding, check out this explainer video from Tezos Commons.

For more on the advantages of Tezos when it comes to tokenized assets, check out this post from TQ’s Charlie Wiser.

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