Tezos Implements Tallinn Upgrade to Enhance Blockchain Efficiency

Tezos, a layer-1 proof-of-stake blockchain network, has implemented its latest protocol upgrade, known as Tallinn, which reduces block times on the base layer to six seconds. According to Cointelegraph, this marks the 20th update to the protocol, aiming to enhance network performance by reducing block times, slashing storage costs, and decreasing latency, ultimately leading to faster network finality times. The Tallinn upgrade introduces significant changes, allowing all network validators, referred to as 'bakers,' to attest to every block rather than a subset, as was the case in previous protocol versions. This improvement is achieved through BLS cryptographic signatures, which aggregate numerous signatures into a single one per block. By reducing the load on nodes, this development paves the way for further block time reductions. Additionally, the upgrade features an address indexing mechanism that eliminates redundant address data, thereby reducing storage requirements for applications operating on Tezos. Tezos representatives highlighted that this mechanism enhances storage efficiency by a factor of 100. The latest upgrade underscores the ongoing efforts to develop faster and higher-throughput blockchain networks capable of handling more transactions per second and reducing settlement times to support a growing array of use cases. Historically, the first generation of blockchain networks, such as Bitcoin and Ethereum, had transaction speeds of approximately seven transactions per second (TPS) and 15-30 TPS, respectively. Bitcoin's protocol, which produces blocks approximately every 10 minutes, poses challenges for everyday payments and commercial transactions on the base layer. This has led to the development of layer-2 (L2) networks to scale transaction execution. For Bitcoin, this is achieved through the Lightning Network, which facilitates off-chain transactions between parties, posting only the net balance to the base layer once the payment channel is closed. Ethereum, on the other hand, employs a modular approach with an ecosystem of L2 networks, separating execution, consensus, and data availability layers. In contrast, monolithic blockchain networks like Solana integrate all these functions into a single layer, foregoing the need for L2 scaling solutions.