First things first, what is blockchain? Nowadays, it is one of the most used terms in the tech community; having knowledge of its relevance and workings is top priority.
Blockchain technology presents itself as a revolution, not only for the global economy, but also for wide range of fields and markets.
In order for the true concept of this technology to sink in, we have come up with a brief introductory text to explain what it’s all about, how it works, and why it represents a huge technological and economic leap.
To understand blockchain, the first thing to outline is its benefits. One of its major advantages is that it breaks dependence from financial intermediaries when doing transactions, just like that! For example, usually when you want to make a money transfer, a bank acts as an intermediary, centralizing the process of managing your assets. In many cases, there could be more than one intermediary, as in a bank, managing the transaction until the money reaches the recipient account. With blockchain all these intermediaries are gone along with their fees applied by them.
With this, you are getting rid of two major day-to-day issues: first having the banking system managing your transactions and second, the high fees for the latter and for other services.
So, does this mean that users take control over this process?
Yes! When taking the intermediary out of the picture, the process is decentralized and the user gains control over the management of their assets. With this process, the user community becomes the one big financial entity in charge of verifying, authorizing and auditing transactions through the process of validating and writing the block of the operation. The users in charge of this process are known as BPs (Block Producers) and they replace miners, which are generally associated with cryptocurrencies. For Telos Blockchain platform, all BPs (active and standbys) are constantly under evaluation and competing among themselves in order to gain popularity and votes amongst the Telos community. Because off this, they are always improving and working on new projects, such as educational and informative DApps, to further improve the Telos blockchain.
But now, is it safe?
Unlike other 3.0 blockchain platforms, Telos regulates itself through a constitution (Telos Blockchain Network Operating Agreement) designed by a governance system that guarantees holders’ and transactions’ safety. Some of the features and safety measures adopted are as follows.
Telos has developed smart contracts for BPs that establish their code of conduct, including sanctions referred to infractions and how they are to be applied.
Additionally, the Telos community votes for delegates all over the world that act as judges during any emerging conflict between users and the blockchain platform. These judges operate under the Telos Blockchain Network Arbitration Rules and Procedures (TBNARP).
To wrap it up, it needs to be said that Telos since its origin has set the goal of not allowing dreadful crypto whales to exist. This are holders or miners that own a very high and unproportioned number of tokens, which gives them the power to manipulate the market to their benefit while undermining other minor holders. On the EOS platform it is clear that whales exist when you see data that shows that 1.6% of the token holders own 90% of the total EOS. To avoid this, when Telos was launched, they distributed their tokens (TLOS) to EOS genesis accounts, by migrating them to the Telos blockchain and giving them one TLOS for every EOS they own, but capping each account to 40.000 TLOS. This avoided bringing the EOS whales to Telos and protects their community at its beginnings.
In other words…
Telos isn’t an ordinary blockchain platform. Its founders worked arduously along with the community to identify the other existing blockchain platforms’ (Bitcoin, Ethereum, EOS among others) weaknesses and to address the issues to find solutions.
Furthermore, they aimed to distinguish Telos from other platforms, granting it an added value that makes it attractive for the market such as the one of developers. We need to recall, that this platform is still very young, having been launched in December 2018, but it is a matter of time before users take full advantage of its perks and really explore the opportunities that it brings to the blockchain world.