May 29, 2023
3 min read
The Tezos Babylon upgrade called “Babylon 2.0.1” is the third key upgrade to the protocol that was activated on the Tezos blockchain network at block 655,361. It modifies smart contracts, the network consensus algorithm, and the governance architecture.
Almost half of 460 the qualified network participants (bakers) have participated in the activation of the Babylon upgrade. The upgrade has been approved by 84.5% of bakers, while only 23 backers voted against the upgrade.
The new upgrade, which was developed by Cryptium Labs and the Nomadic Labs research team, affects the network consensus algorithm, the functionality of smart contracts and improves governance architecture.
Co-founder of TQ Tezos Jacob Arlack, claims that Babylon is showing that Tezos “can upgrade constantly.”
From now on, the staking of Tezos is going to be easier. Backers, who participate as network validators, are having an increased delegated stake of being selected as a Baker or Endorser. The reward system for bakers will be changed so that bakers could approve all available block suggestions. Atomic wallet will implement the staking within couple of weeks.
Babylon also modifies the way of funds sharing. Previously, network participants had to create addresses of a certain type (KT1), which allowed them to share their crypto-funds.
Thanks to the Babylon upgrade, users can now share funds via their public key (key starting with a tz1, tez2, or tz3 address) and not forced any longer create a new contract starting with the KT1 address.
Recently the Tezos community confirmed that zk-SNARKs (which stands for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) will be the next protocol deployed on the blockchain.
zk-SNARKs will reportedly make it possible to provide new solutions for commercial and central banks and integrate a new type of privacy.
Staking fundamentally involves committing your cryptocurrency assets to a specific blockchain system in order to earn rewards in return.
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