Tezos Launches Tezlink Shadownet Testnet for XTZ Scaling Push

Tezos has launched Tezlink Shadownet, the first public testnet for its Michelson-compatible rollup runtime, marking a concrete step in the network's Tezos X scaling roadmap. The testnet went live January 26, giving developers a sandbox to deploy existing smart contracts in a higher-throughput environment without rewriting code.

XTZ trades at $0.58 with a market cap of $617 million, up 1.4% over 24 hours as the network stacks infrastructure upgrades. This follows the Tallinn protocol upgrade on January 25, which cut block times to 6 seconds.

What Tezlink Actually Does

The pitch is straightforward: run your existing Michelson, SmartPy, or Ligo contracts in a rollup environment that promises sub-second latency and lower fees. Contract logic stays the same. Tooling stays the same. You just get better performance.

Tezlink will operate alongside Etherlink, the network's EVM runtime, within the same rollup architecture. The end goal? Atomic composability between runtimes—meaning a Michelson contract could interact directly with an EVM contract in a single transaction.

That cross-runtime functionality isn't available yet. Neither are instant confirmations. Both are slated for a future testnet milestone expected in Q1 2026, when Tezlink and Etherlink will share a single sequencer.

Current Limitations

Shadownet runs on a single sequencer operated by Nomadic Labs—centralized by design during this testing phase. The gas and fee model is experimental and will likely change as the network matures.

Several Layer 1 features won't carry over. Delegation, voting, and attestations don't apply in a rollup context. BLS cryptography (tz4 addresses), ticket transfers, Sapling, and timelocks remain unimplemented for now.

Developer Implications

For builders already working with Tezos tooling, the barrier to entry is low. Most existing contracts can deploy on Shadownet with minimal changes. The testnet supports implicit accounts, contract originations, views, big maps, and internal operations.

This matters because Tezos X represents a fundamental architectural shift. The Layer 1 becomes a lightweight consensus and settlement layer while rollups handle the heavy lifting. Tezlink ensures that existing Michelson expertise and codebases remain relevant rather than becoming legacy artifacts.

Market Context

The testnet launch comes as institutional interest in XTZ shows signs of life. TenX, a public blockchain firm, acquired 5.5 million XTZ on January 20, signaling long-term validator commitment. Whether Tezlink's scaling promises translate to renewed developer activity—and eventually trading volume—remains the open question.

Technical documentation is available at tezlink.tezos.com. Developers can submit feedback through the Tezos Discord channels as the runtime continues development toward a multi-runtime production environment.