Tezos Strives to Close the Gap: How a Governance Trailblazer Addresses Challenges After Ethereum

Arthur Breitman, one of the minds behind the

blockchain, is set to moderate a panel at TOKEN2049 Singapore, a prominent event in the Web3 and blockchain space, where he will explore the platform’s shifting strategies and outlook. The discussion will highlight Tezos’ latest technical milestones, such as the introduction of Etherlink, an Virtual Machine (EVM)-compatible layer-2 network, and Tezos X, a high-capacity rollup intended to boost scalability. These innovations are designed to strengthen Tezos’ position as a leading smart contract platform in a field crowded by Ethereum and new entrants.

Breitman pointed out that Tezos’ distinctive governance approach sets it apart, emphasizing that the network has supported on-chain upgrades since its inception in 2017. Unlike most blockchains, Tezos empowers its community to directly vote on protocol updates, enabling the network to evolve without resorting to hard forks. This self-updating feature, along with its early move to proof-of-stake and slashing, has made Tezos a trailblazer in decentralized governance. Still, Breitman admitted that Tezos lagged behind rivals in 2019–2020, particularly in meeting user expectations for faster throughput and lower latency. The latest improvements, including Etherlink and Tezos X, are part of ongoing efforts to address these shortcomings.

Launched in 2024, the Etherlink layer-2 solution has already drawn over 50 projects, focusing on decentralized finance (DeFi), NFTs, and gaming. Breitman stressed the value of EVM compatibility, which enables developers to bring their Ethereum-based apps to Tezos without the need for major code changes. This stands in contrast to Tezos’ own Michelson language, which, despite its technical strengths, has seen limited developer uptake. Etherlink’s tokenomics also differ from typical layer-2 models, prioritizing sustainable liquidity through selected asset pairs rather than relying on broad metrics like total value locked.

Another significant topic was the tokenization of uranium assets on Tezos. Breitman described uranium as a “technology-oriented commodity” that fits the rising demand for nuclear power, especially as AI-driven data centers expand and carbon neutrality becomes a priority. The Uranium.io platform, built on Etherlink, allows investors to own fractions of physical uranium, lowering entry barriers for traditional market participants. This initiative builds on Tezos’ earlier experiments with asset tokenization and signals a broader push toward integrating real-world assets (RWA) into the blockchain.

Although Tezos’ native token (XTZ) had a market capitalization of about $510 million by mid-2025—far below its $7 billion high in 2021—Breitman remains positive about the future. He attributed the downturn to excessive capital inflows and a shortage of unique applications, but sees new opportunities in DeFi, NFTs, and RWAs as potential catalysts for growth. He also defended proof-of-stake as a more scalable and energy-saving alternative to proof-of-work, a position further validated by Ethereum’s transition in 2022.

During the TOKEN2049 session, Breitman will also touch on broader trends, such as the impact of tokenized assets on diversifying the crypto landscape and the ongoing challenge of attracting liquidity to layer-2 platforms. His presentation follows recent talks at events like the Digital Assets Forum and TezDev2023, where he shared Tezos’ future plans and reaffirmed its dedication to innovation. The Tezos community has already made its mark at major industry gatherings, with a booth at TOKEN2049 and a presence at the Tezos Realm, highlighting its increasing prominence in the global blockchain arena.

Source: [1] Arthur Breitman's Interview, co-founder of Tezos - CoinShares [2] 18 ARTHUR BREITMAN articles - spotlight.tezos.com