What is Tezos (XTZ)?
tezos

What is Tezos (XTZ)?

By Arkemmus | Arkemmus' Blog | 24 Jan 2021



Tezos is the world's first self-adapting cryptocurrency and blockchain.

Tezos was born in 2014, by Arthur Breitman and his wife. At the launch of its ICO, it managed to attract $ 232 million, a stunning amount of money. It has then become one of the 20 most important cryptocurrencies, with a capitalization of more than 2 billion dollars.

Many are the coins that do not meet the objectives initially set, but Tezos has always delivered what promised. The Tezos team is very clear about its objectives and has created an open-source platform that allows smart contracts and dApps, and its entire community continues to develop and improve any possible defect or anomaly that may arise.

The platform has been concerned that the members of the Tezos network can govern it and improve the quality of the ecosystem. The idea is to create a digital community where everyone can hear and have a shared loyalty. This is what makes it different from Ethereum, NEO, and EOS despite their resemblance to the blockchain.

 

All interested members can participate in the governance of the protocol by voting on the updates and proposals made by developers and thus compensate if they are accepted. This process is called "baking".

Tezos design allows for continuous upgrades, so it can be scaled up without breaking the network. Tezos' is unvelnerable to Hard forks so its development is constantly updated and based on proposals and votes.

 

Own programming language
Tezos has its own programming language called Michelson, and it is designed to facilitate the creation of smart contracts on the Tezos blockchain. This language consists of demonstrating through mathematical techniques the accuracy of the code that moves transactions, thus users can demonstrate their ability to make smart contracts more secure.

It has already been used in engineering processes, aircraft design, and even nuclear development!

French bank Societe Generale is working on a stablecoin project using Tezos blockchain. 

 

Proof-Of-Stake
Tezos uses the delegated Proof-of-Stake (DPoS) algorithm to achieve consensus on its platform and allowing highly energy-efficient virtual mining.

Everyone who owns Tezos tokens can participate in the mining process, as a voter for delegates or as a delegate, since each user can vote their choice of both proposals. This voting process has been created to be more efficient and put more pressure on the community of delegates, in such a way that if a delegate misuses his power he would lose his votes. Another curiosity is that there is no limit of delegates.

 

Different approach to scalability
Everyone is concerned about the scalability issues of the crypto environment. There are many blockchain projects working on improving it; Tezos is one of them and they have implemented an approach using zero-knowledge proof concepts, a method that became popular in the Zcash project. It consists of separating the actual execution of a smart contract from its verification by consensus nodes.

 

Token (XTZ)
Tezos (XTZ) is the native token of the Tezos blockchain platform. Its use is like the rest of the altcoins. It is used as the platform's value store to maintain an initial coin offering (ICO), to make micropayments on the network, to promote smart contracts, and even to vote on the future of the project.

Transactions on the Tezos network are very similar to Bitcoin ones, but only in a Proof-of-Stake way.

XTZ tokens are used by the consensus nodes and as a factor for the calculation of rewards.

The total supply of coins today is about 760 million.

 

Since the ICO, all Tezos funds have been managed by the Tezos Foundation, a Swiss-based non-profit foundation, and little by little it will eliminate its power to become a fully decentralized platform, all with the votes of the community.

XTZ tokens are available on all the major cryptocurrency exchanges such as Binance, Coinbase Pro, or Kraken.

 

There are many wallets to store XTZ coins and you can find a list on the official Tezos website.

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Arkemmus
Arkemmus

Strong cryptocurrency lover, I have a lot of experience in this niche.


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