Tezos – Everything you need to know about it
What is Tezos?
Tezos allows XTZ token holders to vote on network rule changes. The software automatically updates all network nodes after rule changes are agreed upon. This gives Tezos users control over its future.
The network gains user satisfaction and practically eliminates hard forks by adopting this governance approach.
It pioneered the division of cryptocurrencies into “on-chain governance” and “off-chain governance.”
The success of Tezos’ 2017 financing series showed that this novel notion garnered popular attention.
History of Tezos
The idea of Tezos started in 2014, when co-founders Arthur Breitman and Kathleen Breitman started this project along with a group of core developers. The company operates from Switzerland.
The Tezos ICO managed to raise $232 million in just 2 weeks, accepting contributions in both Bitcoin and Ethereum. Shortly after this record-breaking ICO, it ran into a lot of management issues.
The company that owned it, DLS (Dynamic Ledger Solutions), was not the one to hold the ICO proceeds. Rather, a new company called Tezos Foundation held all the funds.
Problems arose when the head of the foundation refused to disburse the funds to the Tezos co-founders. However, after a lot of unwanted media attention, things settled and the project started working as intended.
How does Tezos work?
Baking validates Tezos transactions. It’s the proof-of-stake model, but it uses liquid proof. Proof of stake validates without much energy, making it greener.
Anyone with 8,000 XTZ can bake and validate Tezos blockchain transactions. XTZ tokens are their staking reward for validating a block of transactions.
People with less than 8,000 XTZ can delegate. A delegate grants a baker baking rights, increasing their chances of obtaining blocks and rewards. Baker shares staking rewards with the delegate.
Bakers are in charge of it. A baker can submit up to 20 proposals during the proposal period. It takes 80% of bakers to support the most popular proposition in an exploratory vote.
If a proposal passes the exploratory vote, a 48-hour test chain is forked to analyse the changes. After the test, bakers vote on the proposal.
Understanding the Tezos Ecosystem
Defi
The Tezos blockchain’s fast and cheap transactions spawned DeFi apps and protocols like SpicySwap and Kolibri. These work like other proof-of-stake blockchains.
Gaming
The Tezos network supports blockchain gaming. Ubisoft launched a blockchain branch. Additionally, DOGAMÍ, a highly regarded blockchain game, is hosted on this network. This virtual pet game and gaming community are growing.
NFTs
The NFT art ecology on Tezos is famous. Hic et Nunc, the blockchain’s initial NFT platform, no longer exists, however, there are several prominent NFT marketplaces. Objkt sells Tezos NFTs in many art styles. Similarly, generative art fans love NFT marketplace fxhash.
Other brands like MacLaren, RedBull Racing, and GAP have NFTs on the network. Tezos Domains is their naming service. Tezos NFTs are also available on Rarible, an ancient NFT marketplace.
Features of Tezos
Self-Amendment
It can improve itself without splitting the network into two distinct blockchains, thanks to self-amendment. Protocol upgrades have lower coordination and execution costs due to self-amendment.
On-Chain Governance
Every stakeholder in it has the ability to influence the protocol. For interested parties, the election cycle offers a systematic and formal process.
Decentralised Innovation
Tezos acceptance and development can be aided by creating an engaged, transparent, and varied developer community that is encouraged to make contributions to the protocol.
Smart Contracts & Formal Verification
It provides a framework for developing decentralised apps and smart contracts that are immune to censorship or shutdown by outside parties.
Should you invest in it?
Tezos is in a competitive market. Several programmable blockchains are notable. Investors want to know which will last.
Key advantages could help it succeed. Great innovation: its self-amending governance mechanism provides stakeholders with authority and helps it avoid upgrade concerns like other blockchains. Tezos staking will also earn investors XTZ tokens.
Tezos promotes its security as a preferred preference for security tokens, a sort of cryptocurrency that reflects real-world assets. These firms use this, including tZero and Elevated Returns. Official mathematical verification of smart contracts, multi-signature contracts, network upgrade ease, and security token compliance tools and support are also Tezos’ claims.
Nobody knows if it will succeed, but it has potential. Cryptocurrency is volatile, so only invest what you can afford to lose.
Conclusion
The Tezos system is durable and incorporates the best features of existing blockchains. This keeps the protocol resilient and current with technology. It’s methodology prompted it to face criticism during development, but it is now a robust platform for consensus mechanisms, smart contract safety, and self-upgrades. Tezos’ foundation aims to improve its protocol and systems. The crypto community has hailed Tezos as a transaction chain due to its obvious benefits.
