Tezos (XTZ) is a distributed blockchain platform with a prominent governance model. Like Ethereum (ETH), Tezos offers smart contracts and decentralized applications. The smart contract concept of Tezos allows users to go a step ahead and directly regulate the rules of a network and enhance the quality of the network. Tezos (XTZ) is a native cryptocurrency of the Tezos blockchain, which is designed and implemented to act as a fuel for the entire blockchain.
How Tezos Works?
Tezos is a self-amending, distributed and permissionless network, which uses smart contracts that typically focuses on offering an exclusive on-chain governance system to make some noticeable improvements over its well-established digital currencies such as Ethereum.
The blockchain protocol is divided into three categories based on function.
• Network protocol – It is known as a protocol responsible for discovering blocks and broadcasting transactions between nodes.
• Transaction protocol – This protocol is accountable to declare the valid transaction.
• Consensus protocol – This protocol is primarily for attaining agreements on completed transactions, or that will occur.
In Tezos, the combination of transaction and consensus protocols are described as blockchain protocols. A generic network shell acts as an interacting platform between the so-called “blockchain protocols” and the network protocol.
The network shell possesses the capability to recognise three elements in Tezos – Blocks, Transactions, and Protocols.
Features of Tezos
• Self – Amendment
The self-amendment feature enables in easy upgradation of blockchain with no hard fork. Keeping away from hard forks would be good for the community as these can reduce the effectiveness of the network for which the community has contributed so far.
• On-Chain Governance
The Tezos governance model is a self-evolving network. The self-amending capability of Tezos has made it unique and different from other elements as it can evolve based on the requirements of the industry.
This governance model permits users to develop the decision-making process within the network, rather than looking for development teams and mining members to create new designs.
In the on-chain governance model, developers submit the proposals independently for the protocol upgrades, which are then automatically deployed into the network. This proposal is attached to the compensation that a developer needs for developing and releasing the particular updates. As a result, Tezos motivates users to vote on these proposals. Upon approval, developers can start working for the inclusion of their upgrade.
Tezos protocol store funds in escrow and are distributed as soon as the upgrade proposal is implemented. With the approval of the community, developers can work independently and are compensated separately. Hence, this protocol prompts its development.
Tezos has opted this powerful on-chain governance system for upgrading continually and to eliminate radical changes as it can result in splitting the network known as hard forks.
• Smart Contracts and Formal Verification
Michelson is a functional programming language used for writing smart contracts and DApps on Tezos network. This language is designed to simplify formal verification by helping users to mathematically prove the correctness of the code leading to transactions. Michelson language is more straightforward and is based on OCaml GADT, which allow users to build analysis tools.
• Proof Of Stake
Tezos is a delegated proof of stake (dPOS). This obliges individuals to stake Tezos tokens to actively partake in the consensus that occurs over the blockchain.
The process of staking Tezos tokens (XTZ) as ‘baking’ in Tezos. Users of this ecosystem can earn more Tezos tokens and contribute to secure the blockchain model.
How to Buy Tezos Cryptocurrency
Due to its delayed launch, many exchanges are not selling/buying Tezos. However, only a few exchanges aid in buying/selling.
- Gate.io: XTZ/BTC, XTZ/ETH, XTZ/USTD are some of the supported pairs
- HitBTC: XTZ/BTC, XTZ/ETH, XTZ/USTD are some of the supported pairs
- Codex: XTZ/BTC, XTZ/ETH, XTZ/USTD are some of the supported pairs
- Bitpanda: XTZ/BTC, XTZ/ETH, XTZ/USTD are some of the supported pairs
Wallets for Tezos
The team of Tezos has developed few new wallets.
• Web Wallet: Kukai, TezBox
• Mobile Wallet: TezBox, Tezos.blue
• Desktop Wallet: Kukai
Finally, Tezos has an exciting future, but it needs to improve in specific categories such as having proper documentation can draw the interest of professional developers to get them familiarized with Tezos. Michelson, the smart contract programming language is new to developers and offers a learning platform for all the developers.