Tezos Highlights DeFi Potential Ahead of Jakarta Upgrade

Tezos has found itself back in the limelight ahead of its 10th upgrade – Jakarta.

Reminding people of its relevance, Tezos co-founder Arthur Breitman participated in an interview with Cointelegraph in which he explored the potential of DeFi.

“People haven’t really tapped into DeFi for real-world assets being tokenized,” he said. Breitman added that the financialization of NFT “is going to be a big thing” but called for the merge of traditional financial securitization with DeFi.

For Breitman, DeFi’s true power is yet to be unlocked. “The point of DeFi cannot just be to trade DeFi tokens,” he said.

“There’s a gigantic untapped universe out there and everyone has a lot of room to grow. We are going to see a lot of convergence in the design of blockchains,” Breitman continued.

Jakarta

It’s been less than a month since Nomadic Labs announced the launch of Tezos’ ninth blockchain upgrade – Ithaca 2. Now, the 10th upgrade is already on the final production line. In the coming days, users will be able to test Jakartanet, a testnet version of Jakarta.

The new upgrade will introduce scaling solutions for Tezos. In his Cointelegraph interview, Breitman explained that Tezos is taking a scaling approach that involves Transaction Optimistic Rollups (TORU), a layer-2 solution that supports very high-throughput use cases that offers horizontal and the vertical scalability of blockchain networks.

TORUs will allow the exchange of assets but not the execution of smart contracts. As an evolution of optimistic rollups, TORUs will not be implemented as smart contracts but natively in the economic protocol.

Tezos prizes itself of implementing a “self-amending” protocol that relies on the community to vote for upgrades to be introduced. Taking community to another level, the Jakarta upgrade will also bring in the “Liquidity Baking Toggle Vote” which allows bakers to vote “On”, “Off”, or “Pass” to vote for the Liquidity Baking subsidy being turned on, off or impartiality.