A high-level introduction to the Telos blockchain

Professional stakeholder voted validator teams

Telos has 21 “active” validators who are voted in by TLOS holders. Those active validators take primary responsibility for maintaining the network, while a cohort of “standby” producers is paid and regularly tested to serve as a back-ups.

Any of the standby validators can be voted into the top 21 at any time by TLOS holders with continuous elections being tallied roughly every 2.5 minutes. Conversely, producers can be voted out of the top 21 at any time as well. The network also has standby validators automatically rotated into the top 21 periodically to give their operations a chance to produce blocks and prove their readiness.

A growing base

The broader Telos community includes more than 500,000 user accounts on the network, over 3,000 followers on our Telegram groups and other social channels, and 150 companies from over 180 countries,

Developers are working to build over 100 distributed applications on Telos as of early 2021, including the music rights-trading platform Zeptagram, gaming platform QUDO, Social media platform Appics, and the payments system Sesacash. A full list of dApps on Telos is available at https://telos.net/explore/

Telos position in the Crypto Market

High growth rate and usage
500,000+ account base
Number 1 by Activity Valuation Index
Bitcoin and Ethereum scaling ahead

How Network Effects are driving TLOS value

The telos based economy has boomed over the last 2 years, there are over 100 projects building on the network and already over 500,000 user accounts, this is driving higher utility demand for the native token in a number of ways, an effect that should only increase in the future. Below are some of the key network effects driving demand for TLOS:

Projects lock up TLOS to pay for network resources

Projects lock-up (or stake) TLOS to use network capacity to pay for user transactions and activity. As even more active dapps like Appics and Qudo near deployment on the mainnet this is set to increase substantially.

Projects pay for storage in TLOS

Projects require purchase of RAM to hold smart contract data and user account balances.  In early 2021 the release of dStor will drive the use of TLOS as payment for storage even further as it sets to compete against IPFS and Amazon S3 buckets.

Uniswap like AMM pools on Telos

In 2020 Telos released its first major liquidity pool called Telos Swaps. These liquidity pools allow users to swap between one token to another instantly. Since launch we have seen steady growth in usage of the platform. Telos swaps uses TLOS as the primary asset for projects to lock up value against. Any project wishing to list on tswaps.com must therefore purchase significant amounts of TLOS to be part of the fast growing Telos economy.

With over 100 projects on Telos and more coming each day, it is not hard to see a continuing increase in demand for projects to use TLOS for automated market making,

Increasing use of TLOS as a currency

There are already 100s of individuals accepting TLOS for work either via our Telos Works system, as validators or other community run initiatives. Use of the Telos Decide governance engine is also paid for in TLOS. In 2021 we will start to see more dapps accepting the native asset as a form of payment. One such example is Area X NFT platform using Telos’ Marble asset standard. Area X NFT is a platform for users to create and sell digital art/collectables along with the networks unique fundraising technology T-bonds.

TLOS token utility

Staking

CPU
Bandwidth
Staker Rewards

Pay Fee’s

RAM - Contract Storage
Premium Name Space Bids

Governance

Producer Voting
Work System Voting
Network Admendment Voting

Liquidity

Exchange / AMM Swap Pool Liqudity

Currency

CPU
Emerging form of paymentStaker Rewards

#2 No transaction fees incentivizes user adoption

On proof-of-work (PoW) chains, such as Ethereum, users must pay a transaction or “gas” fee for every action on the network. So for example, if a user was to ‘like’ or ‘share’ a post for example on a dApp which was built on a POW network a ‘gas fee’ would charge for that single action on the blockchain to the user. With the internet offering free access to many resources this gas fee hinders widespread adoption as users are used to using centralized applications which usually do not charge users for doing basic tasks or transactions.

The Telos Blockchain Network solves this problem for dApp developers by allowing applications to stake resources (in this case, TLOS) for their users. Thus, an application can purchase or rent the amount of TLOS that their users need and remove the burden of transactional fees from their particular application. This allows for a free and frictions experience for the application users. If application developers do not want to stake resources for their users, users can stake resources themselves, allowing them to use applications without a per-use cost. No transaction fees – coupled with fast transaction speeds – mean that users will not even know they are using an application built on top of a blockchain.

#3  Unparalleled Speed and Scalability

Delegated proof of stake allows Telos superior scalability when compared to traditional proof-of-work networks. Currently, the Telos blockchain can process over 4,000 transactions per second, and that capacity grows with code updates, sidechains, and other growth mechanisms. This kind of transactional speed puts Telos on par with centralized entities such as Visa and Mastercard and their ability to process thousands of transactions.