Tezos
Tezos is an open-source Proof of Stake (PoS) blockchain network that provides peer-to-peer (P2P) transactions via the native XTZ cryptocurrency (called Tezzie) via a decentralized platform by deploying smart contracts. The Tezos blockchain also facilitates the creation of decentralized applications (dApps) and is considered a potential competitor to Ethereum.
Tezos coin uses a Proof-of-Stake (PoS) consensus mechanism, eliminating the need for miners to perform complex proof-of-work (PoW) calculations to validate blocks of transactions and create coins. Rather, users stake XTZ to validate the code and data on the blockchain and receive XTZ encryption through this process.
Arthur and Kathleen Breitman, a husband-wife team, first proposed the Tezos XTZ in the 2014 white paper. In 2017, they raised about $232 million during the initial cash offering (ICO), the largest crypto debut at the time. XTZ launched in 2018.
The Tezos ICO, however, has been in conflict since the beginning. Breitman got into an argument with the president of the Tezos Foundation (the organization formed to establish Tezos and run the ICO), which led to a court battle in which some investors claimed the ICO represented the sale of unregistered securities. The claim took three years to resolve, and the plaintiffs were paid $25 million for lost money and legal costs.
Despite this initial setback, Tezos continued to grow and change, albeit slower than its first entry into the market.
Many first-generation blockchain networks such as Bitcoin and Ethereum suffer from certain limitations that developers can only fix with significant improvements to address network issues, such as scaling and security. At times, a strong fork may appear to be the only solution, which can lead to disturbance and community division. Tezos blockchain (XTZ)solves this problem by acting as a flexible blockchain network, making it one of the most promising projects in space today. The issues surrounding decentralized networks have long been a concern for blockchain communities, as they have continued to decide on the basis of differing views on whether any project should move forward. To address this, XTZ has implemented a system where users can vote on key network changes that they can perform on their own without the need for strong forks.
Tezos uses the Proof-of-Stake (POS) consensus algorithm. This is also known as Liquid Proof-of-Stake by others.
· Block Creation (Baking): Block Creation or Baking is what allows Blockchain to continue to improve. So in the Tezos platform, blockchain participants are known as bakers. Baker assists the network by contributing computing power to validate the transaction. For this, they receive a prize for the recently launched XTZ.
· Delegating: Delegating allows users to hand over their coins to the baker. Thus, coin owners can“borrow” their coins from the baker, and thus the baker will have a higher chance of being selected. The baker can then share the profit with the owner of the money.
· Fork Choice Rule: The Fork Choice Rule of the Tezos consensus algorithm helps to determine which chain is "right". In the Bitcoin system, the“right” fork is determined by the longest chain in the canonical canon. While at Tezos, the "right" fork is based on the number of bakers who allow the block. Bakers are not only responsible for making blocks but are also responsible for authorizing blocks.
· Developers may find Tezos blockchain compelling as a way to introduce new dappers and NFTs. Tezos is home to a variety of projects, including Tezsure, a decentralized insurance market, and a dApp called tzBTC, which aims to make bitcoin tokens.
· Investors may also want to purchase and participate in XTZ in order to earn revenue through XTZ awards.
· Users can find Tezos appealing based on its public voting process, as well as a valid verification process that ensures the reliability of updates, releases, and contracts.
DATE NEWS/EVENTS IMPACT 07/12/2021 Ubisoft, the popular video game platform partners with Tezos to launch in-game NFTs +37% Increase 09/09/2021 Crypto Finance, Incore, and Inacta have announced using the Tezos blockchain for tokenized financial products +28% Increase 18/05/2021 China restricts financial and payment institutions from providing cryptocurrency services -48% Decrease
As we have seen how Tezos has faced a difficult start, it is now becoming a promising platform as it offers powerful technological advancement in terms of consensus mechanism, smart contract security, and self-improvement processes. Tezos has a supportive community, the "Tezos Foundation," which is promoted to help improve its protocol and the entire ecosystem. As we have seen the various benefits of Tezos, it can be said that it offers an excellent opportunity to be a prominent chain in the cryptocurrency space. But only time will tell if it can recover from delays and obstacles.
