What Is Tezos (XTZ)?
The Tezos project is an example of a blockchain project that stands out due to its built-in mechanisms that allow it to continuously improve its network. The Tezos blockchain is modified by making code proposals from people who own a certain amount of XTZ, and the changes are voted on by peers. As Tezos automatically amends itself, there is no need for that pesky hard forking business to bother with
Introduction
As one of the most crowded and competitive sectors in the crypto industry, smart contract platforms make up a significant portion of volume. As crucial as it may seem to tackle the current technological difficulties in order for smart contracts to mature, there are a number of different approaches available to meet the high demand for sufficient smart contract infrastructure on the base layer.
In the field of decentralized finance and digital asset management, Tezos, with its XTZ token, and its use for decentralized finance applications, is one of the main players.
What is Tezos (XTZ)?
With Tezos, smart contracts can be created and run through a blockchain designed for that purpose. In 2016, Tezos' mainnet went live and has since achieved moderate success in offering a form of competition to the Ethereum network. Tezos was first designed in 2014, but went live in 2018.
It has been announced that Tezos will be overseen by The Tezos Foundation (TTF), a Swiss charity responsible for promotion, grants, strategic alliances, and all aspects of raising awareness of the Tezos ecosystem.
The project was initially developed by Arthur Breitman and his wife Kathleen Breitman, but suffered a number of delays as a result of a dispute between them and Johann Gevers of the Tezos Foundation. Tezos, however, went on to launch and survive the bear market successfully after the rocky start.
A Initial Coin Offering (ICO) was conducted by Tezos in July 2017 raising $232 million. Tezos conducted a very large ICO compared to other token sales.
How Tezos (XTZ) works
Tezos works almost the same way as many of its blockchain competitors, allowing users to create and run decentralized applications (DApps) and exchange assets through the platform. The smart contracts that are built on Tezos are written in the Michelson programming language that is designed specifically to work with the protocol. Transactions are carried out on the Tezos network by using gas, which is converted into fees and paid for in Tezos's cryptocurrency, XTZ.
The Tezos blockchain is based on a Proof of Stake (PoS). Technically, Tezos is a variant of Proof of Stake called Delegated Proof of Stake (DPoS), although it is implemented in a unique way.
By holding over 8,000 Tezos, members can become delegates and play an important role in running the network by baking and endorsing. A baker is someone who makes new blocks (basically another word for staking), while an endorser is someone who "agrees" on a specific block created by a baker. Alternatively, a token holder can delegate these tasks to someone else if he does not have 8,000 XTZ or if he does not really want to set up the required hardware himself.
Why Tezos (XTZ) is important
Tezos is different from other smart contract platforms on the blockchain with regard to a few key features.
Tezos uses a self-amending feature, which makes it possible to upgrade its network without the need to fork into two separate blockchains. Think about Bitcoin Cash, a famous hard fork created by the Bitcoin network. Tezos is designed to avoid scenarios such as these.
Tezos is a technology which can easily adapt to ever-changing legal and technological environments due to the fact that it is self-amending. Despite the fact that Ethereum 2.0 represents a big step forward for Ethereum, it requires the creation of what is effectively a brand new and separate blockchain. Nevertheless, Tezos ought to be capable of making changes to the system and continue without much interruption in circumstances like this.
Tezos (XTZ) governance
Tezos follows an on-chain governance model when it comes to change. code updates are used to submit changes to the blockchain by delegates. The stakeholder then has a vote to make in terms of whether they approve or disapprove of the proposed changes.
In fact, this on-chain governance model can result in radical disruption at any point in time therefore, the delegates should give their approval for the proposed changes to be made to the blockchain. It can be anything related to this, including alterations to fees, changes in the process of baking. this results in a vibrant community of users who work together to improve the system by discussing changes and new rules.
During Tezos' Delphi update in November of 2020, the gas consumption of the network decreased by around 75%, thus lowering the cost of the service. In addition to the effect of an upgrade of this nature on DeFi development on the Tezos blockchain, it also shows how a blockchain governance model can be flexible and adaptable to changing priorities.
Tezos (XTZ) use cases
Tezos, like other blockchain networks, is a fast, efficient, and low-friction way to verify financial transactions with minimal trust involved.
Cybercrime division (C3N) of the Gendarmerie took advantage of Tezos for the first time to validate judicial expenses in September 2019. It became one of the first governmental agencies to do.
There is also the possibility of using Tezos to transfer ownership of illiquid assets such as gems, jewelry, and real estate. The company called MountX is using Tezos in Mexico to tokenize the value of real estate.
How to store Tezos (XTZ)
In terms of storing the XTZ token, aka Tez or Tezzie token, a number of software wallets such as Trust Wallet, as well as the usual suspects in terms of wallets can be used to store it.
In addition, XTZ can be stored on either the Trezor hardware wallet or the Ledger hardware wallet using third-party software.