Replacing the current Tezos consensus algorithm, Emmy+, with Emmy*, Liquidity Baking (tez-tzBTC), and several gas improvements leading to a 3x to 6x decrease in gas consumption of popular contracts. Full changelog here.
The Granada protocol upgrade proposal features several major improvements to the protocol, numerous bug fixes, and minor improvements.
The first of the major protocol improvements is the replacement of the current Tezos consensus algorithm, Emmy+, with a new consensus algorithm known as Emmy*. In general, it’s expected that that Emmy* will reduce Tezos block times from 60 seconds to 30 seconds, as well as allow transactions to achieve faster finality than the current consensus algorithm.
The second comes in the form of Liquidity Baking. Liquidity is a key component of a good store of value, and the ability to carry out the low-slippage exchange of tez into other currencies and vice-versa is key to growing the widespread use of Tezos. By minting a small amount of tez every block and depositing it inside of a constant product market making smart-contract, this proposal incentivizes large amounts of decentralized liquidity provision between tez and tzBTC.
Granada also introduces a number of substantial improvements to performance, which in turn result in dramatic reductions in gas consumption. In general, the gas consumption pertaining to the execution of already deployed contracts has been decreased by a factor of three to six. For some contracts, testing shows the improvement is almost a factor of eight. This reduction in gas consumption, the latest in a series that began with the Delphi upgrade, will enable developers to deploy even richer, more complicated, and more interesting applications on Tezos at a reasonable real-world cost.
For a full description of the contents of the Granada proposal, including the other bug fixes and small improvements, [we encourage you to look at changelog.