Tezos (XTZ) is an open-source blockchain platform where software developers can build decentralized applications and smart contracts that cannot be restricted or disrupted by third parties. Tezos’ native cryptocurrency is XTZ. In this article, we will look for answers to questions such as what is Tezos (XTZ), what does Tezos (XTZ) do, what are the advantages of Tezos (XTZ).
What is Tezos (XTZ)? What Does It Do?
Tezos is a blockchain protocol where smart contracts can be drafted and decentralized applications can be developed. In fact, it works in a similar way to other blockchains. However, the most important difference of Tezos compared to other blockchains is that the blockchain can constantly evolve, change and manage itself without the need for fragmentation. The vast majority of blockchains rely on development teams and mining communities to make changes. What Tezos does here is precisely to leave the choice to the users in their decision-making process. On the Tezos platform, the necessary improvements are made by the developers, but decisions are made by the community.
Holders of the XTZ cryptocurrency can participate in the governance of the Tezos protocol. This is an indication that Tezos offers a democratic blockchain ecosystem. Tezos enables the digital community to make the needs that may arise over time within the digital community itself, rather than through hard bifurcations. All XTZ cryptocurrency holders can indicate their approval of the proposed protocol change by voting. On the other hand, XTZ cryptocurrency holders can also reject proposals to change the protocol. This digital community, coming together around common interests and concerns, aims to further develop the platform by making joint decisions.
In addition to being used in governance processes, the XTZ token also plays an important role in the protection and operation of the network. Transaction fees on the Tezos blockchain are covered by the XTZ token. The Tezos platform rewards developers with the XTZ token.
What Advantages Does Tezos (XTZ) Offer?
There are multiple reasons why Tezos is a democratic, flexible, efficient and developer-friendly blockchain. The advantages offered by Tezos in this context are as follows.
Self-Governing Protocol
Tezos is a self-executing blockchain protocol. Community members have a say in how the protocol works and what changes are made. This makes it easier and faster to update the protocol. Potential bifurcations are also avoided during updates.
Scalability
Tezos is designed to support high transaction volumes and enable easy network growth. This makes it possible for more users to join the network and make transactions.
Flexibility and Optimization
Tezos determines the contents and guidelines for updating smart contracts and developing the protocol through voting. This makes the protocol more flexible. At the same time, new features and improvements are easier to integrate into the protocol.
Security and Formal Verification
Tezos uses formal verification techniques to increase the security of smart contracts. This makes smart contracts more resilient to vulnerabilities caused by software bugs. Formal verification ensures the mathematically proven security of the code.
Process Efficiency
Tezos’ Proof of Stake (PoS) consensus mechanism ensures faster and more efficient transaction times. Proof of Stake is more efficient in terms of energy consumption and reduces costs on the user side by lowering transaction fees.
Low Transaction Fee
Tezos’ low transaction fees reduce users’ transaction costs. This also encourages wider participation in the network.
Developer Friendly Tools
Tezos offers a variety of developer tools for developers to write, test and execute smart contracts.
Low Energy Consumption
Tezos’ use of the Proof of Stake (PoS) consensus mechanism reduces energy consumption compared to Proof of Work (PoW).
How does Tezos (XTZ) work?
On the Tezos platform, developers submit an enhancement or update to the protocol to the community. In doing so, they can offer a price offer for the transaction they will perform. If the community accepts the proposal submitted by the developers, the developers are paid in XTZ cryptocurrency. This way the system works, developers have an incentive to make the protocol better. At the same time, the management of the network is decentralized.
One way to incentivize software developers is for users to organize a reward campaign. Fixing existing bugs in the protocol, developing new features, etc. users can make requests to the software developers on such issues. If developers meet these demands, they will be rewarded with the XTZ cryptocurrency.
Tezos’ blockchain is divided into two parts: the network shell and the network protocol. If we look at these sections:
Net Shell
It is the part of the code that performs transactions, administrative operations and changes itself depending on how users vote.
Network Protocol
The part of the code that sends a proposal to the network shell for review.
Tezos uses a variation of the classic Proof of Stake (PoS) mechanism called Liquid Proof of Stake (LPoS). This mechanism works by users staking or, in the case of Tezos, cooking XTZ. XTZ cooking allows participants in the network to contribute to the functioning of the network by using their tokens. In Tezos, this additive process is called “baking”.
Who are the Founders of Tezos (XTX)?
Tezos was first conceived in 2014 under the leadership of Arthur Breitman and Kathleen Breitman and the network was launched in 2019.
Arthur Breitman graduated in Mathematics and Computer Science from the École Polytechnique in France and then attended the Courant Institute for Mathematical Sciences at New York University, where he received his PhD in computer science. After his studies, he worked as a quantitative analyst at Goldman Sachs and then as a vice president at Morgan Stanley. He then co-founded Dynamic Ledger Solutions with his wife Kathleen Breitman, leading the Tezos project.
Kathleen Breitman graduated from New York University with a degree in Financial Mathematics. Known for her expertise on the fintech side, Kathleen Breitman was a strategy partner at R3, a New York-based payments blockchain solution provider, just before co-founding Tezos. In his previous experience, he worked at Accenture , also in the field of strategy.
To summarize, Tezos is a self-sustaining blockchain platform that supports the development of decentralized applications. It allows community members to act with software developers to contribute to the functioning of the protocol and drive updates. This supports the protocol to be flexible, secure and sustainable. With this innovative and original approach, Tezos is a self-organizing protocol that encourages the active participation of the community and ensures the continuous development of the project.
What Other Things to Know About Tezos (XTZ)?
To find out a little more about Tezos (XTZ), it’s worth taking a look at the answers to some of the questions below.
Is XTZ a token? Or is it a coin?
Coin is a cryptocurrency created on its own blockchain. A token is a cryptocurrency that does not have its own blockchain and is created on an existing blockchain. It is a coin because Tezos has its own blockchain.
What is the maximum supply of XTZ coin?
The maximum supply of XTZ is unknown.
Which blockchain is XTZ coin on?
XTZ coin exists on its own blockchain.
Is XTZ coin being mined?
There is no mining in the classical sense. Tezos has enabled mining with the PoS system. In PoS mining, those with enough Tezos (XTZ) in their wallet can mine virtually without the need for any device or electricity consumption.
How to buy XTZ coin?
To buy XTZ coins, it is sufficient to create a membership at ICRYPEX. Once the membership process is complete, other cryptocurrencies including XTZ coin can be traded quickly, easily and securely.
How to Become a Member of ICRYPEX?
After visiting www.icrypex.com from a browser, you can click on the “SUBSCRIBE” button at the top right of the page, fill in the required information and you can easily create your membership.
From mobile devices, primarily;
Android users can download our app by clicking here, Apple users by clicking here and HUAWEI users by clicking here. After logging in to the application, you can click on the menu icon at the top left, then click on “SUBSCRIBE” to fill in the required information and easily create your membership.
