What is Tezos?

XTZ is a popular altcoin among investors. However, before you Trade XTZ, it is vital that you understand what you are investing in. Let's find out what's XTZ and how it functions.

Tezos, like Ethereum, is a blockchain network built on top of smart contracts. However, there is a significant difference: Tezos intends to provide more advanced infrastructure, which may change and develop over time without risking a hard fork. This is an issue that has plagued cryptocurrencies ever since their creation, including Bitcoin and Ethereum. People who own XTZ can vote on protocol improvement ideas put up by Tezos developers.

The developers of this open-source platform claim that it is secure, upgradeable, and built to last and that the platform's smart contract language provides the precision necessary for high-value use cases. Tezos claims that its methodology makes it future-proof and remain state-of-the-art long into the future, allowing it to take advantage of advances in blockchain technology.

Tezos's underlying technology was initially proposed in a white paper published in September 2014. Four years after its initial planned release date, Tezos finally saw the light of day on its mainnet.

How is Tezos different?

Staking is a standard feature of blockchains in general, but Tezos adds a new twist to the process. By baking, or basically staking 8,000 XTZ, users may participate in the network's governance. Because of this, there will be a financial benefit to act honestly

When proposed changes to the blockchain's code are made, bakers vote on them in a four-stage process that takes around 23 days. Successful proposals are tested for 48 hours on a testnet and, if supported by a super-majority, immediately deployed to the mainnet.

One other thing that sets Tezos apart is that several major corporations are using it. The French banking behemoth Societe Generale said in September 2020 that they would utilize this blockchain to test a digital currency issued by the central bank.

How many XTZ tokens are there?

Tezos had an initial coin offering (ICO) in July 2017, during which a total of 65,681 BTC and 361,122 ETH were collected. In terms of value, this was $232 million at the time, making it one of the biggest ICOs ever.

Only 20% of the total supply was allocated to the Tezos Foundation and Dynamic Ledger Solutions, with the remaining 80% going to investors.

Some unhappy investors filed a series of lawsuits claiming that XTZ constituted unregistered securities, delaying the launch of the mainnet.

Network security

A proof-of-stake consensus algorithm lies at the heart of Tezos. By staking their tokens, anybody may join the network of validators and help ensure its continued operation. Those that contribute to the greater good of the blockchain are rewarded for their efforts, while those who cheat the system stand to lose their investment entirely.

Founders

White paper author Arthur Breitman used the pen name L. M. Goodman as a tribute to Satoshi Nakamoto. He said that Bitcoin's inability to issue additional tokens via the blockchain and the absence of a governance framework that encouraged participation from users were two of the cryptocurrency's major flaws.

Together with his wife Kathleen, he started a company named Dynamic Ledger Solutions to develop the technology behind the Tezos protocol. The Tezos Foundation later acquired the business to guarantee that it held the necessary network-related intellectual property rights

Where can you buy XTZ?

XTZ is available on the licensed cryptocurrency exchange CryptoForce and several other national and international exchanges.

Disclaimer: Cryptocurrencies are highly volatile and subject to market, technical, and regulatory risks. Crypto trading requires one’s own diligence, and Cryptoforce will not be responsible for any losses incurred. Any information provided here should not be regarded as Cryptoforce’s technical or financial advice