Talk to a dozen executives about the next-generation
blockchain and you will most likely get a dozen different responses. The first
challenge to overcome is around semantics. Are we fully into blockchain 2.0
yet? Or are we in the third generation? What happened to the second one then?
Regardless, one area in which consensus can just about be drawn is that the current generation of blockchain technologies begets broader use cases beyond the financial, and requires more complex transactions as a result. If Ethereum can be seen as part of the second generation, then organisations such as Telos need to be seen as a third generation coming through.
Built on EOSIO – claimed as
the most powerful architecture for decentralised applications – Telos claims a current
record of 12 million transactions across 24 hours. It’s not quite EOS, also
built on EOSIO, which can handle up to seven times that amount – but it’s much
more than Ethereum, whose 15 transactions per second maxing out equates to just
under 1.3 million across a day.
Douglas Horn, architect at Telos and author of the company’s
whitepaper, notes the enterprise rationale for blockchain technologies and the
challenges currently face. “Real-world applications for blockchain, particularly
anything that’s enterprise-based, needs amazing speed and capacity, because
once you are looking at scaling up any kind of solution, the chain has to be
able to transact at a higher resolution, meaning a faster block time, and also
just at a higher capacity than anything that’s previously gone before,” Horn
tells The Block.
Sharply describing this realisation as the ‘CryptoKitties
moment of clarity’, Horn adds: “In 2017, a lot of people woke up to the reality
that there was a dream of decentralised apps – and there’s the reality of what
these existing networks could possibly deliver.”
Consequently, we have seen a plethora of pilots across industry
and across the supply chain, from logistics,
FMCG, to healthcare,
yet little more. The promise of moving from pilot to production may be a big
one if we look at lessons from other emerging technologies. Research from
McKinsey earlier this year found 58% of companies surveyed who had gone into
production with their IoT initiatives had seen a 5% or better increase in
revenue. Just under half (46%) had additionally seen a 5% or better decrease in
As has already been seen, the technological limitations are
there – and as Horn notes, enterprise decision makers know it. “Until the
network’s there, built and active, that it can be rolled out on, nobody’s going
to roll out, because they’re dooming themselves to failure,” he explains. “I
think these people are very smart, and they realise they probably have one
chance to graduate from POC to working solution, and they don’t want to mess up
their chance by doing it on a platform like Ethereum where it will never scale.
Why build that?
“What the proof of concept is proving is that, on that
blockchain, it’s not feasible. But they can easily roll that into a very
similar, EOSIO-based platform that will scale,” Horn adds. “Whether they know
it or not, they’re waiting for something like Telos or EOS.”
EOS is able to handle more transactions right now – but Telos
is banking on its governance and lower deployment cost as being the de facto future solution. “Even with a
great [system] like Decred, at some point someone has to write a cheque,” explains
Horn. “With the Telos Worker Proposal System as part of our governance, it is
“One of the things the work proposal system does is [that]
the core dev department is funded by the work proposals. And if people in the
community lose faith in them, think they’re going in the wrong direction, they
can simply stop voting to fund them and vote to fund some other group,” Horn
adds. “For the first time, the votes, the token holders, are actually in a
position to select who would be writing the code. Who’s the clergy?
“It would be very hard for example to fire Vitalik Buterin –
he’s a brilliant person, why would you want to? – but if the token holders
decided they would want to, there’s no mechanism for them to do that on
Ethereum. On Telos we believe, because we’re looking at a future where there’s
mass adoption, we believe it’s important for people who are token stakeholders
to make that change.”
With claims of being the fastest and highest capacity
blockchain in the world, not to mention the most even distribution of tokens, it
is a strong pitch from Horn, who clearly is a deep thinker on this sphere of
technology. Yet don’t just take his word for it. CoinTelegraph wrote
in February that Telos was ‘the on-ramp to third-generation blockchain’, a
headline Horn repeated in this interview.
Ultimately, time will tell as to how the enterprise will
respond, but the optimists see it only as a question of time rather than
direction. “Some people try to think about what would happen if just one
enterprise solution were to be employed,” says Horn. “What we really need to
think about is a world where dozens, hundreds and very soon thousands of
enterprise solutions, each with massive scale, is deploying on a blockchain.
“Currently only Telos, and EOS, and other blockchains based on the EOSIO platform, are technologically capable of handling that.”
Interested in hearing more in person? Find out more at the Blockchain Expo World Series, Global, Europe and North America.
The post Telos: Exploring the next steps for true enterprise-grade blockchain solutions appeared first on The Block.
Credit: Blockchain News