Tezos has completed the Delphi upgrade, which many believe would make the blockchain a hub for defi projects. As per the official announcement, the Delphi upgrade has brought down the gas fees significantly, allowing users and developers to deploy more complex smart contracts on the platform.
— Tezos (@tezos) November 12, 2020
The Delphi upgrade is believed to bring down the gas fee by a whopping 75% along with a four-times lower storage cost.
Tezos network makes use of gas just like Ethereum, but with a different implementation. While the Ethereum blockchain uses gas as a transaction fee, the Tezos network uses it as a limit setter for the consumption of computing power for a transaction. However, the transaction cost is determined by the amount of gas used for that transaction.
Gabriel Alfour, the lead developer at Marigold—and one of the core development teams that worked on Delphi, explained the importance of the lower gas fees and how it can propel the Tezos network to be a leading blockchain when it comes to the deployment of complex smart contracts. He said,
The motivation for such an interim proposal is straightforward. The size and complexity of smart contracts is limited by gas constraints, and so people attempting to build contracts with rich functionality have needed improvements to those constraints for some time.
Thus, such improvements are crucial to enable novel applications on Tezos that target areas like DeFi (“Decentralized Finance”), collectibles, and gaming.
Luckily, in August, we finalized some long-standing work on improving the performance of the Michelson type checker and interpreter, and on refining the cost model, thus mitigating the gas problem.
Growing gas fees due to the network congestion has been a substantial problem for Ethereums mainnet since defi gained traction, and its volume increased significantly. While the launch of ETH 2.0 is believed to solve many of the scaling problems for Ethereum, in the meantime, other blockchains such as Tezos can attract higher numbers of customers to its platform.