The Tezos blockchain recently upgraded to its fourteenth version, known as “Nairobi,” which offers multiple enhancements, including faster transaction speeds of up to eight times faster than before. The upgrade came after Tezos upgraded to version 13, “Mumbai,” in March, which enabled the blockchain to process one million transactions per second (tps).
Nairobi introduces a new fee mechanism that charges users differently based on network usage instead of a one-size-fits-all flat fee used in previous versions of the blockchain. Additionally, Tezos’ Smart Rollups, a scaling tool designed to speed up the network, will get upgraded continuously and automatically as newer improvements on the Tezos blockchain are deployed in the future.
However, despite the significant performance boost brought by the Nairobi upgrade, usage of the Tezos network remains significantly lower compared to other popular blockchains. The blockchain only processed 68,000 transactions over the past 24 hours, while networks like Ethereum processed 1 million transactions, BNB Chain processed 3.9 million transactions, and Bitcoin processed 400,000 transactions in the same period.
The network’s XTZ token trading at 80 cents at the time of the upgrade announcement, a decrease of 2% caused by the market’s perception. Experts attribute the low network usage to the blockchain’s delayed entry into the market, whereas other blockchains had been in operation before the Tezos network was launched. However, with upgrades like Nairobi, which improve the network’s performance, the blockchain could improve its adoption and rise to become a significant player in the industry.
Accordingly, Tezos is investing in research to identify and implement cutting-edge technologies to ensure the network’s longevity and scalability. The blockchain has also announced that it is focusing on the creation of decentralized applications and their integration into the network. This move will make the platform more user-friendly, as developers can use smart contracts to build decentralized applications that will run on the blockchain’s infrastructure.
Despite the popularity challenges faced by the Tezos blockchain, the adoption of blockchain technology is on the rise, and the demand for fast, secure, and reliable blockchain solutions is also growing exponentially. Therefore, the deployment of the Nairobi upgrade is a promising development for the Tezos community, and it is expected that more improvements will be implemented in the near future to make the network more competitive.