What is Tezos?
Tezos is a smart contract and dapps platform built on top of the leading native blockchain. The network uses tezzies (XTZ) to incentivize bakers and run its operations.
Tezos aims to be the first self-modifying blockchain solution, although there have been similar successful projects like Ethereum or EOS. Additionally, Tezos’ protocol is capable of developing and implementing new improvements over time, without the risk of a hard fork.
How Tezos Works?
Tezos works in a similar way to other blockchains. The key innovation here is how new additions are added to the blockchain. Here’s how it works:
When a developer proposes a protocol upgrade, that developer can attach an invoice to receive payment to their address when their upgrade proposal is approved. This approach provides a strong incentive for participation in Tezos core development while also decentralizing the maintenance of the network.
Developers will receive tokens if their upgrade request is approved. Those tokens have immediate value. That means developers don’t need to seek funding, pay a salary, or have to work alone.
Tezos also uses formal proofs to verify that key properties are maintained over time. Through this approach, Tezos was able to add new technical innovations quickly while also enforcing a kind of constitutionalism.
Stakeholders can collaborate with on-chain projects. Additionally, the Tezos blockchain allows for bounties to be created – for example when specific features need to be implemented, or specific bugs need to be eliminated.
Outstanding advantages of the Tezos project
- Self-modification and on-chain governance
This is one of the notable points of Tezos. All Stakeholders can participate in the orientation and governance of the platform. Besides voting to change the Tezos protocol, Stakeholders can also change their voting during the operation. In other words, they will be the ones to decide the future for Tezos.
- Liquid Proof of Stake (LPoS) Algorithm
Basically, LPoS is a variant of DPoS but the difference is: you can delegate voting, send your Token to someone you trust.
Tezos applies LPoS consensus mechanism to save energy consumption, At the same time, Stakeholders will commit to deposit an amount (XTZ Token) into the system, then will be rewarded if the block confirmation process is successful. . Therefore, any action that damages the system, that Stakeholder will lose the money committed to deposit.
Tezos Difference From Other Blockchains
Tezos PR itself as an alternative to other blockchains like Ethereum, bitcoin and ZCash. What sets Tezos apart from its competitors?
Other blockchains can be described by a triple (S, apply, and score):
S: A kind of internal, mutable state. In bitcoin, for example, this would be the set of unmined outputs.
Apply: A transition uses state S, a transaction T, and creates a new state S.
Score: The scoring function determines the valid blockchain branch. In bitcoin, this is the total hashing power on-chain.
What sets Tezos apart is that it allows partial states to be applied and scored. That means the rules of the ledger are self-governing. The rules of the ledger control more than the validity of transactions: they control the evolution of the rule itself.
Tezos has many of the same features as other blockchains. It is a cryptographically based, highly secure, decentralized, and unhackable system.
Some of the features that make Tezos unique from other blockchains include:
- Decentralized, auto-upgrade: Tezos decentralizes the upgrade process, which is something we don’t see with any other blockchain.
- Upgrade without hard fork: Upgrades are decided by consensus of stakeholders according to clear governance regulations. Those rules are programmatically enforced to avoid political stagnation and deadlock without the need to entrust or empower a core development team or a team with disproportionate influence in the process.
Details about XTZ Coin
XTZ Token Use Case
In the current Tezos ecosystem, XTZ is mainly used to:
- Transaction fees.
- As a block reward for Baker.
- Onchain Governance: by Vote for proposals to select the proposal that is approved by the majority.
- Used by the Tezos Foundation to build and develop the Tezos ecosystem.
XTZ Key Metrics
- Token Name: Tiz.
- Ticker: XTZ.
- Blockchain: Tezoschain.
- Token Standard: Updating…
- Contract: Updating…
- Token Type: Utility, Governance.
- Total Supply: Unlimited.
- Circulating Supply: 861,090,080 XTZ.
Tezos can be stored in offline wallets such as Ledger Nano S, Trezor, etc.
Currently traded on: Binance, Gate.io…
Roadmap & Updates
An overview of some of the features that are being built by community groups on Tezos:
- Consensus Mechanism: Tendermint, Avalanche.
- Security: zk-SNARKs.
- Scalability: Sharding.
- Layer 2 and several new smart contract languages.
In addition, here are Tezos’ adopted proposals:
- Athens (5/2019): Increases Gas Limit and reduces the value of 1 Roll from 10,000 XTZ to 8,000 XTZ.
- Babylon (October 2019): Launching a more robust version of the blockchain consensus algorithm (Emmy +); Simplified Smart Contract development; fine-tuning the Delegate process.
- Carthage (March 3, 2020): Increase gas limit per Block and per operation; improved the formula used to calculate Baking and claim rewards.
- Delphi (9/2020): Improved gas fee. Reduce storage costs by a factor of 4 to reflect improvements in the underlying storage layer.
- Edo (2/2021): Add Sapling and BLS12-381 to activate Smart Contract to protect privacy and ticket for Native Permissions. Updated the revision process by reducing the interval length to 5 Cycles and adding a 5th Adoption Period.
- Florence (5/2021): Double the size of Operation, and Smart Contract. Gas optimization as well as acceleration to a factor of 10. Enables more intuitive Smart Contract development by applying execution depth order. Deactivate the Test Chain in Economic Protocol, resulting in a more streamlined revision process.
- Granada (8/2021): Launch of Liquidity Baking, generate a small amount of tez per Block and deposit into the Market Making Smart Contract. This incentivizes massive amounts of decentralized liquidity between tez and tzBTC. Includes a number of improvements resulting in a 3-6x reduction in gas fees.
Investors and partners
- Elevated Returns: A financial company, focused on Tokenized Assets.
- Brazilian Investment Bank: Brazil’s investment bank.
Community information channel
Above is all the basic information of the Tezos project. Hope you find the article useful.