The Sword Group is a French, international, software, consulting and services company, created in 2000 and present in 19 countries. Three months ago I wrote about Sword Group and their new standard for timestamping and electronic signatures that they have developed on the Tezos on blockchain. Digitally authenticating documents is a $3 billion dollar market and growing. Tezos DigiSign makes digital authentication more efficient and a whopping 15 to 70 times cheaper.
One of their first clients is “Avis Clients Blockchain”, which provides authentication of customer reviews. Avis will provide this service to “Plus Que Pro” with 15 million unique visitors per year.
Today, the popular Tezos focused talkshow TezTalks, published an interview with Alain Broustail, director of Blockchain EZ and consultant of Sword Group. Alain announced that Sword Group will start a Tezos validator, which is in Tezos terms referred to as a Baker. A validator or Baker, is what miners do for Bitcoin or Ethereum: they make the blockchain secure and decentralized and earn miningrewards or stakingrewards.
To become a Tezos baker, you need to set up the Tezos PoS software on a computer and run the software 24/7 to compose and confirm the blocks of data that form the blockchain. Since Tezos uses the Proof of Stake system, you need XTZ to be able to Bake.
Tezos currently has 403 active bakers. As far as we know, the Sword group is one of the fisrt corporate Bakers in the ecosystem. As for any Baker goes: other holders of XTZ will be able to delegate their XTZ and earn rewards by a few simple clicks, without transferring their XTZ. So delegating means, that you earn stakingrewards without the need to set up a baker. Delegaters keep full custody of their own XTZ and are able to stop at any time without a fixed period. Yearly return for your staked/ baked/ delegated XTZ is about 6%, payed in XTZ spread out over the year. Payouts are made every three days and every newly earned XTZ will start earning you more XTZ. That’s compound interest on your XTZ. Combine this with the explosive possible growth of a strong and health cryptocurrency and you have possibilities that you can’t imagine in PoW cryptocurrencies.
Double commitment to the Tezos ecosystem
It is great if companies decide to build on Tezos obviously. But if they choose to get deeper involved in the Tezos ecosystem, it shows a double commitment and strong believe in Tezos. Both as a decentralized blockchain, but also as a cryptocurrency. A believe in both the technology and the value.
This is the third entity we seen taking this step. We’ve seen ENVITED become very active in the community. (ENVITED is a work group that explores virtual proof of validation of highly automated driving functions. Work group members include automotive manufacturers such as Audi, BMW, Daimler and Porsche, as well as other Partners.)
And we’ve seen Sustain Exchange (which will integrate the Tezos protocol in their future primary STO issuance platform) showing interest in actively contributing to the Tezos protocol. “SUSTAIN will also provide technical expertise and lend support to the ongoing development and improvement of the Tezos protocol.” One of the developments that Sustain is interested in contributing to, is Spruce Systems’ decentralized identifier (DID) project on Tezos.
Tezos’ decentralization level, combined with its on-chain governance mechanism which allows anyone to propose improvements and additions to the Tezos core protocol, is apparently a healthy basis for entities like this to take the next step and getting more deeply involved. This involvement is possible in a decentralized and secure way, due to the democratic property of the governance mechanism. Combined with two testing periods in the governance cycle, the preservation of the security of the protocol is warranted. While Tezos is in its fifth upgrading cycle, it continues to prove the reliability and robustness of its design. It grows to be truly battle tested and when these entities that build on Tezos start to get more involved in the community and Tezos ecosystem, it shows how the confidence grows in the Tezos blockchain.
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