Everything you need to know about Tezos (XTZ)
Tezos (XTZ) is a blockchain network that is linked to the Tez or Tezzie digital token. Tezos isn’t focused on Tez mining. Token holders, on the other hand, are rewarded for engaging in the proof-of-stake consensus process.
Tezos was beset by delays and legal concerns after a promising start and a very successful Initial Coin Offering (ICO). Tezos, on the other hand, survived the cryptocurrency bear market thanks to its unique proof-of-stake mechanism. Between October 2019 and February 2020, the price of Tezos more than tripled, hitting new highs.
Tezos vs Ethereum: what’s the difference?
Tezos is a blockchain network built on smart contracts that is similar to Ethereum in several respects. There is, however, one significant difference. Tezos aspires to have a more advanced infrastructure. This means it can develop and change over time without ever having to threaten a hard fork. Since their inception, both Bitcoin and Ethereum have struggled with this problem. Tezos owners will vote on protocol enhancement proposals submitted by the Tezos team.
This open-source platform bills itself as “secure, extensible, and durable” with its smart contract language claiming to provide the precision required for high-end use cases. The project claims that by taking this approach, the network would be future-proof and “will remain advanced well into the future,” implying that it would be able to take advantage of advancements in blockchain technology.
The Tezos founders
Arthur Breitman was the author of the Tezos whitepaper, and he used the alias L. M. Goodman to pay homage to Satoshi Nakamoto. One of Bitcoin’s greatest shortcomings, he claims, is the lack of a governance mechanism that encourages feedback from the network’s users. The fact that new tokens cannot be created on that blockchain is also important.
He and his wife Kathleen formed Dynamic Ledger Solutions, a start-up business. This company was tasked with writing the code that would underpin the Tezos protocol. The Tezos Foundation then purchased this business to ensure that it held all intellectual property rights to the network.
No staking, but baking
Though staking is popular in blockchains, Tezos takes a different approach. Participants will participate in the network’s governance by staking 8,000 XTZ in a process known as “baking,” This provides a financial incentive for fair trading.
Bakers are then given a four-step procedure to vote on proposed improvements to the blockchain’s code, which takes about 23 days. Proposals that receive widespread support will be tested for 48 hours on a test network before being fully enforced if they receive a qualified majority of votes.
Tezos is also unusual in the way it is being adopted by major corporations. In September 2020, it was announced that Societe Generale, a French banking giant, intended to use the blockchain to test a digital currency for its central bank.
Tezos Staking is supported by major cryptocurrency exchanges like Binance and Coinbase, which means users can win prizes depending on how much XTZ they own. With digital properties, this is a functionality you won’t see very often.
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