Welcome to the final Baking Sheet of 2022! Thanks to all of our readers for being on this journey with us and we're ready for a monster 2023.
Looking back on 2022, it was quite a big year for the Tezos ecosystem. For crypto and the blockchain space as a whole, we can come to the same conclusion with the whirlwind of developments we witnessed throughout.
Let’s get straight to the point and peel back the curtain for some highlights throughout the year and reflect.
Tezos: Reflecting on 2022
I think it goes without saying that 2022 was the year for development within the Tezos ecosystem. Shortly after the year kickstarted, the long awaited plans for scaling were introduced by Nomadic Labs.
Let’s recap the major upgrades we saw get activated on the Tezos network.
Protocol Ithaca — Introduced Tenderbake, fast and deterministic finality on Tezos. Other features included eliminating the use of “rolls” and reducing the minimum threshold for baking from 8,000 to 6,000 tez, liquidity baking changes, the introduction of prechecking of operations, and more.
Protocol Jakarta — Emphasized Layer-2 scaling through the introduction of Transaction Optimistic Rollups (TORUs), sapling improvements, a Liquidity Baking toggle vote feature, Michelson interpreter improvements, tickets hardening, and more.
Protocol Kathmandu — Continued emphasizing new Layer-2 scaling applications through the introduction of Smart Contract Optimistic Rollups (SCORUs), Improved randomness for distribution of baking rights, event-logging, validation pipelining, support for ‘Ghostnet”, and more.
Protocol Lima — Continued efforts towards pipelining which helped enable higher Layer-1 throughput on Tezos, introduced a new feature enabling enable bakers to change their key used for signing blocks and consensus operations without having to change their public address, improvements towards tickets and more.
That’s a lot of core protocol development.
At the beginning of the year we saw a deep focus on improving latency and finality. This was reinforced by the deployment of Tenderbake, dramatically reducing block times and enabling faster finality and latency. Following this, we witnessed the seeds get planted for increasing throughput (TPS).
Optimistic rollups, pipelining and side chains have helped pave the way throughout the year towards increasing throughput.
TORUs allowed for the exchange of assets, but not within the execution of smart contracts. So, it made sense to follow TORUs with SCORUs. Gabriel Alfour of Marigold gave a ELI-5 response to what SCORUs are and how they would be beneficial to the core protocol.
Around this same time, validation pipelining was introduced. Imagine if there was a way to get a “free gain” in throughput (TPS) from a Layer 1 optimization?
That’s essentially what pipelining would enable.
A pretty ingenious way to speed up consensus and reduce the loads of nodes on the network without significant tradeoffs like decentralization, if I do say so myself.
For side chain development, we saw the release of Deku from Marigold. The first sidechain to go live on Tezos, Deku offers offers a web assembly virtual machine, faster throughput, and a native bridge to Tezos (made possible thanks to Michelson Tickets).
Daniel Hines of Marigold shared some insight into the motivation behind working on Deku.
Layer-2 development has been progressing at lightning speed. We’ll describe more of what’s coming with the recently announced “Mumbai” upgrade later on in the article.
Despite market sentiment across the board, it’s been a big year for Tezos in terms of adoption.
NFT sales volume has been making all-time highs on Tezos even as of late. In Messari’s “State of Tezos Q3 2022” for the sixth consecutive quarter, Tezos made all-time highs in terms of NFT sales.
In addition to these communities, the Manchester United NFT drop rolled out recently. Since the rollout, nearly 900,000 unique wallets have been created. If we take the top NFT drops on Tezos we saw throughout the year such as Tezzardz, Dogami, Neonz, and GoGo’s — this has been the biggest NFT drop yet.
The recent Art Basel event in Miami also showcased Tezos-based artists and communities at large. Marissa Trew of Blokhaus shared some insight on what the event was like after attending and hosting several panels.
Combine this with several partnerships to the likes of Team Vitality, Gap, Papa Johns, Evian Water, Ubisoft and more we witnessed throughout the year — this upward trajectory does not seem to be slowing down anytime soon.
As we move forward towards the mass scalability plans announced earlier in 2022, the latest Tezos upgrade that’s been announced is aiming to take it a gear further. Protocol Mumbai has been announced, focusing on achieving 1M TPS through the introduction of several new features.
Yes, you read that number right.
Mumbai will be one of the biggest upgrades we’ve seen introduced yet on Tezos. Three major developments geared around scalability have been introduced.
- Smart Rollups activation
- ZK Rollups
- Pipelining activation
- Other improvements
Smart rollups will allow anyone to deploy decentralized WebAssembly applications with dedicated computational and networking resources. They have been in use on testnet, with Mumbai additional design and implementation improvements are being made.
Next, ZK rollups are also being introduced and will be rolled out gradually over several upgrades. Dubbed “Epoxy”, these rollups will allow for applications to be built on Tezos which do not necessarily need to rely on Tezos’ Layer 1 to publish and distribute data. It will enable the building of privacy preserving solutions which rely on keeping data sensitive.
Lastly, 15 second block times are coming! The last installment of the efforts being made with validation pipelining will be completed in Mumbai. For a detailed list of other changes, be sure to check out Nomadic Labs blog post.
As we close the year out, let’s reflect back on all the ecosystem teams that have worked hard to continue pushing Tezos as a leader in the blockchain space. If 2023 is to be any similar to this year, it will be another big year for the Tezos ecosystem.
2022 was an exciting year for @tezos and it would not have been possible without all of you.
— Tezos (@tezos)
Dec 23, 2022