The Tezos project is progressing rapidly towards decentralized financing

The Tezos project is progressing at an accelerated pace towards decentralized financing ... Can it budge Ethereum?

Ethereum dominates the DeFi arena, almost without competition, at least for now.

However, there are many upcoming projects for the decentralized financing arena that are working quickly to catch up with Ethereum, and are working to attract users with lower fees and faster transactions, and one of these projects is the Tezos project.

The venture capital company “Draper Goren Holm” announced that “Tezos Stable Technologies” - a subsidiary of the “Tezos Foundation” recently launched with the aim of developing decentralized financing projects for DeFi on the Tezos blockchain - has completed a successful initial financing round on Friday. Disclosure of the amount.

Meaning that the Tezos project's financing round is considered the first step to building a decentralized financing system based on the Tezos blockchain and to compete with the Ethereum blockchain, in the hope of attracting some billions of cash that has so far gone almost exclusively towards Ethereum-based projects and protocols.

Newly funded Tezos Stablecoin Technologies will support the development and spread of USDtz on the Tezos network, and will also issue plans for the public sale of Trustee coins (TRU).

TRU holders will receive a share of digital currencies from every new Tezos-based decentralized financing project launched in partnership with the organization.

It appears that a number of Tezos Finance open source projects are already under implementation, including lending platforms and the decentralized “TEZEX” platform.

Decentralized finance is a series of technology projects that provide users with access to financial tools and services such as loans or interest on deposits.

As decentralized finance replaces central entities such as banks with software codes called smart contracts that fulfill user requests on decentralized blockchain networks.

More than $ 10 billion in value has been booked in smart Ethereum-based DeFi decentralized financing contracts at the moment, according to DeFi Pulse .

DeFi financing - which currently exists almost exclusively on the Ethereum blockchain - relies heavily on stablecoins, which are digital currencies usually linked to the dollar (or any other asset) that act as low-risk cryptocurrency assets to hedge the volatility of other cryptocurrencies.

It also allows for DeFi to operate.

The Tezos project, which raised more than $ 230 million through an initial coin offer in 2017, with the support of investor "Tim Draper", differs from Ethereum in some ways of working, most notably the following:

In Tezos, the blockchain validation process is using a Proof of Stake (DPoS) delegation of consensus, in which only designated contracts can create new blocks or validate their authenticity.

On the other hand, the greater central controllability of a DPoS can be seen as a drawback compared to the broader participation of users in the design of the Proof of Stake planned to be rolled out in Ethereum 2.0.

While Tezos risks being relatively more centralized, it can upgrade basic protocol elements without reconfiguring the blockchain and causing splits from various updates.

Project Tezos could also outperform the current dominant blockchain, Ethereum, in terms of transactions, as the Tezos blockchain processes up to 40 transactions per second, compared to 15 transactions in the Ethereum blockchain according to research firm BlockFyre .

More transactions per second could allow Tezos to accommodate more users simultaneously without higher fees, a problem that has plagued the Ethereum network in recent months.

The Tezos project has attracted increased interest in recent weeks, as many positive news circulate that the currency is the front-runner for the potential development of a digital version of the euro.

With the advent of real-world uses of blockchain technology in DeFi protocols, Ethereum competitors are scrambling to launch their own decentralized financing products.

Tezos has seen its ups and downs, but in the end it appears that it is determined to take its share of decentralized financing.