Today, I did a detailed review of Tezos, another smart contract based blockchain in the crypto space.
Already, close to 140 projects are running on this blockchain.
And experts commend the platform for how well it adopts changes.
Plus, you get some XTZ tokens when you participate in this network.
Want to learn how to do that and more? Let’s get to business!
- What Is Tezos?
- Features Of Tezos
- How Tezos Works
- XTZ Tokenomics
- Customer Support And Public Opinion
- Tezos vs. Ethereum
- What Does The Future Hold For Tezos?
1. What Is Tezos?
Tezos is an open-source blockchain network that offers P2P transactions and supports smart contracts.
The goal was to solve the problem of protocol development that faced most blockchains like Bitcoin.
Thus, Tezos was designed to prevent forks, PoW centralization, enable smart contracts, and improve security.
After a successful ICO in 2017, the developer team fought over intellectual property rights.
This delayed the launching of the platform by months. Even investors started a series of lawsuits to get refunds.
Gratefully, all that was dealt with and Tezos is here to thrive.
Let’s see the features of this platform in the next section.
2. Features Of Tezos
The unique features of this platform are:
Upgrading a blockchain is complex and most of the time, contentious.
The case is different with Tezos because the upgrade process is decentralized.
It is as smooth as the software upgrades you find in your devices.😉
Zero Hard Forks
In addition to decentralizing upgrades, Tezos has a set of rules that must be followed to vote and reach a consensus on upgrades.
Therefore, no one group will be strong enough to force their will on the community.
This makes hard forks impossible.
This is a character of Tezos that enables the blocks added by stakeholders to implement changes to the network.
These blocks may contain transaction information or protocol upgrades.
I will now show you how this platform works. Keep reading!
3. How Tezos Works
To understand how Tezos work, let’s look at the three main protocols of the blockchain:
Here, blocks are determined and broadcasted on the chain.
This protocol provides information to nodes (called bakers) on how to maintain the integrity of the network.
You can request to be a baker on the platform if you hold the minimum stake requirement.
The Network protocol also connects users. And it links the other protocols together.
- The minimum stake requirement to become a baker is 8,000 XTZ
- Bakers’ tokens are confiscated when they approve invalid transactions
This protocol covers the validity of transactions. It has a record of peer-to-peer interactions and blockchain activities.
Tezos uses the DPoS consensus model to reach a consensus on the state of the blockchain.
This means that there is no need for mining. Rather, stakeholders (XTZ holders) maintain the integrity of the blockchain.
XTZ holders stake their tokens in a smart contract so that they can delegate their stake to specific bakers.
In other words, they delegate their coin to bakers whom they trust to secure the network.
When bakers earn rewards from validating transactions, they share the rewards with the stakeholders (in proportion to their stake in the smart contract).
Additionally, the consensus protocol manages stakeholders’ votes for blockchain modifications.
And like I mentioned earlier, these modifications happen excellently on this platform.
This is how it is done…
- A developer proposes an upgrade or a change to the Tezos protocol.
- The community votes on the proposal
- When it is approved, the developer gets paid in XTZ tokens.
I love this approach because developers are rewarded instantly for their work.
Also, it decentralizes the maintenance and development of the network.
And just so that nothing goes wrong, mathematical proofs are used to verify that the key properties of the blockchain are retained with any upgrades.
This means that blockchain modification is automated. As such, the network advances quickly and without stress. Superb!
Moreover, Tezos permits the creation of bounties on-chain.
This helps to hasten the development of new features and spotting/removal of bugs.
Any stakeholder can create a bounty. So cool!
Next, we’ll talk about XTZ tokens.
4. XTZ Tokenomics
XTZ is the native token of the Tezos network. It is also referred to as Tez.
During its ICO in July 2017, $232 million was raised and tokens were sold for $0.47 each.
Out of this initial supply (unknown figure), 80% went to investors and 20% was split equally between the Tezos Foundation and Dynamic Ledger Solutions.
The maximum supply of the coin is also not available.
Like other coins, XTZ has had its highs and lows in the crypto market.
Presently, it is priced at $6.41 with a 24-hour trading volume of $493,243,982 (as of 14/05/21).
And it has a circulating supply of 875,969,827 XTZ coins.
Holders of this token can participate in the governance of Tezos. They can also trade it for other coins.
5. Customer Support And Public Opinion
Tezos has a developer portal that explicitly explains how to build on the platform..
Users can also stay updated via these channels:
Then I checked Tezos on TrustPilot but there were no reviews, which is quite poor for a platform that has existed for more than 2 years.
I also checked on SCAMADVISER, and it had a 100% trust score.
On Reddit, the platform has an active group with over 46,000 members. Cool!
I compared Tezos and Ethereum in the next section.
Check it out!
6. Tezos vs. Ethereum
Earlier, I mentioned that Tezos is a competitor to Ethereum because it supports smart contracts and DApps.
Impressively, Tezos fungible tokens are compliant with the ERC-20 standard. They are specified in Tezos’ TZIP-7.
Also, the Ethereum non-fungible tokens of ERC-721 and ERC-1155 standards are specified in Tezos’ TZIP-12.
Thus, boosting interoperability between both blockchains.
In the table below, you will see some differences between the platforms.
From the table, you can see that Tezos does better than Ethereum in transaction throughput and cost.
However, Ethereum has a bigger community and hosts larger number of DApps.
And as such, it has earned the trust of most developers.
Next, I shared my thoughts on the future of Tezos.
7. What Does The Future Hold For Tezos?
From where I stand, the future looks bright for this platform.
Firstly, the founders did not give up the project in the midst of early challenges.
Apart from the founders, Tezos can also boast of a community that believes in the project.
This includes developers, scientists, bakers, start-ups, and enthusiasts that supported the project from the beginning and still work towards its success.
Another strength of this network is the price of XTZ; it has been doing well since February 2020. Have a look:
And considering that Tezos survived the bear market of 2019 and reached new highs, XTZ is one coin to hold on to.
Nevertheless, the success of this platform largely depends on the value of its technological innovations and its ability to gain support.
Tezos is already doing a good job in that regard.
For example, certain DApps run autonomously on the chain like CricTez, Kalamint, Stably, Wrap Protocol, etc.
So, we can expect more in the future.
We’re almost done here. Let’s answer some questions and wrap it up.
I believe this platform is safe based on the following:
– There is evidence of its registration on Whois.com
– The founders are known
– It has a physical office
– Different projects are running on the blockchain
– It is listed on Coinmarketcap and GitHub
Nevertheless, DYOR before investing in Tezos.
As a developer, you can propose an improvement to the network and get rewarded when your upgrade is approved.
You can also create DApps on the chain and reap profits when the public begins to use them.
Follow this link to know how to start.
If you are simply an enthusiast, you can buy and stake XTZ tokens in the exchanges mentioned earlier and earn rewards.
Additionally, you can benefit from the bounties created by stakeholders in the network.
You will find information on these bounties in the Tezos Forum.
If you want to learn how to trade cryptocurrencies profitably, we have created a perfect course to help you do that.
Enroll in our Cryptocurrency Mastery Course by going to www.ctmastery.com.
You can also join our Telegram community at https://t.me/ctmastery for more information.
To say the least, Tezos is a blockchain for the developers. It supports smart contracts and the building of DApps with ease.
Also, you are rewarded with XTZ when your proposal for upgrades are approved by the community members.
Then, you can trade and stake the XTZ tokens in the exchanges that support the coin.
This is where we’ll draw the drapes in our discussion on Tezos. I hope you enjoyed the read.
Now, I’d love to hear from you; what do you think of this platform? Do you think it will attract more adopters?
And how do you feel about the price of XTZ? Will it rise or go down?
Let me know your thoughts in the comments section right now.
Also, share this post with your friends, thank you!