Bitcasino World Cup Raffle Campaign - Win the VIP World Football Championship Experience
655
views

Tezos (XTZ) Review: What Makes Tezos Stand Out?

Since you have stumbled upon this article, you must have heard a bit about Tezos or the good stuff this project is doing in the crypto space. Well, getting right into it, Tezos is one of the few projects that was developed from scratch, unlike most cryptocurrencies that have taken after Bitcoin’s infrastructure. 

As far as the long list of merits about the Tezos blockchain goes, it depends on a less power-hungry algorithm than Bitcoin or Ethereum. The algorithm is less computationally rigorous and less power-consuming, but it still uses a dependable proof-of-stake (PoS) consensus algorithm.

The ultimate aim of Tezos is to build a blockchain technology that functions more effectively than Bitcoin.

The Workings in the Tezos Ecosystem

Tezos aims to be the blockchain that has the best on-chain reward system in the crypto space. The network will reward users for maintaining consensus and offer a proper process through which stakeholders can govern the project protocol and implement upcoming innovations.

With Tezos, new additions, updates, and innovations are added to the blockchain at its robust community’s request. In a nutshell, Tezos has a totally different view on governance than other blockchains as it encourages participants in the core development of the blockchain. Its users can propose protocol updates and attach invoices to receive rewards if the said upgrades go through. This approach incentivizes developers in the Tezos network to be creative and build a better ecosystem. It is also a brilliant way of maintaining the decentralization of the network.

If a proposed upgrade gets approved, then the developer(s) responsible for it receives tokens. The use of formal proofs streamlines this method. These formal proofs allow the network to mathematically verify that key properties are upheld over time, and it also ensures that innovations are included without over-forcing the process.

Another unique aspect of how the Tezos project is developed is that it lets any stakeholder create on-chain bounties. This speeds up network development while allowing potential glitches to be detected and fixed efficiently and timely.

How is Tezos Different from Its Competitors?

Basically, the key difference between Tezos and its blockchain-based opponents is the way it allows its ledger rules to be self-governing and decentralized. 

For you to comprehend this, you should know that every blockchain is dependent on three parameters; ‘state,’ ‘apply,’ and ‘score.’ Tezos blockchain sets itself apart by making the ‘apply’ and ‘score’ parameters a part of the mutable state, allowing the ledger rules to be self-governing. 

Another key feature that differentiates Tezos from other blockchains is that its updates/upgrades are automated, almost as smooth as upgrading any modern software. 

Because the project’s unique set of government rules allows participants to vote easily and reach a consensus, Tezos enjoys a refreshing exception from other blockchains where upgrades can be complex. 

The upgrade process on Tezos has been entirely decentralized, making it nearly as easy as modern software upgrades.

Baking on Tezos

In Tezos, blocks are created through a process known as ‘baking.’ This is essentially the same as staking, but it’s only open to network nodes with more than 10,000 XTZ. For each block created, a delegate can earn a 16 XTZ reward – roughly $15.5 at current prices.

Tezos users with smaller holdings can still participate by nominating a delegate to bake on their behalf. A proposed protocol upgrade suggests decreasing the minimum stake to 8,000 XTZ, allowing more XTZ holders to bake independently. 

Tezos is now one of the most-staked digital assets, with users currently baking $495M worth of XTZ tokens, or 75% of the circulating supply. 

Tezos Made Great Progress in 2019

The Tezos name was once synonymous with drama due to a severe boardroom dispute, prolonged ICO token lock-up, and regulatory problems meant that when the mainnet eventually launched in the summer of 2018, many investors dumped their token holdings on the open market. This caused the XTZ token’s value to plummet from $4 to $ 1.60 drastically.

But things seem to be looking up. Coinbase exchange announced in March 2019 that it would launch a new staking provider, which would allow institutional clients to stake XTZ without their assets leaving cold storage

During 2019, several other major crypto exchanges enabled staking for XTZ, including Binance and Kraken, leading to a positive growth of users joining the platforms. 

For this reason, the price of XTZ saw a significant boost in its performance, overtaking cryptocurrencies such as Bitcoin. Its upward trend could continue into 2020 due to the major role exchanges play in the crypto market.

In terms of partnerships, Tezos’ achievements are equally important. The Tezos Foundation has joined forces with banks, groups, and platforms to further develop Tezos’ potential.

Amongst the most remarkable partners are Securitize, Globacap, and BTG Pactual. Many of the project’s partners use the XTZ token as part of solutions applied to everyday life.

More interestingly, the Tezos community also saw significant growth in the past year, having held three intercontinental TQuorum events with upwards of 300 participants and conducting more than 40 Tezos community meetings worldwide.

Finally, the Tezos Foundation has released a series of grants over the past year for several crypto-related projects that responded to the foundation’s calls for proposals. In fact, they have issued 14 grants to various projects that are working towards furthering the Tezos project’s interests.

The recipients of the grants will be focused on developing applications created on Tezos smart contracts, various tools for developers who use Tezos, Tezos oriented training projects, block explorers, and marketing projects that will place Tezos on the map in the crypto community. 

Judging on all past developments and partnerships of the project, Tezos is apparently on its way to becoming one of the biggest blockchain players. 

Verdict: Is It a Project Worth Investing in?

Tezos held its ICO in July 2017, raising an astounding $232 million (a record at the time), highlighting the promise shown by Tezos.

When it was launched, Tezos allowed the blockchain to evolve and improve without complex upgrades or hard forks, which remains a valuable feature.

On balance, the Tezos project remains a very captivating use-case for blockchain tech, as it could resolve the protocol governance concerns that have plagued so many blockchains, including BTC’s and EOS’. 

Furthermore, more exchanges are implementing staking procedures into their service than ever before, and more proof-of-stake coins keep popping up, with Tezos being at the forefront.

Tezos is one of the top staking platforms in the crypto market and likely the most profitable PoS coin available for investors.

Bitcoin live price
Btc
Bitcoin
$20.077
price
4.68572%
price change
BUY NOW

It offers the highest returns of any proof-of-stake coin of around 7.3% per year, almost double most other similar coins and over 2% more than its nearest competitor. 

Stay up to date with our latest articles

More posts

5 Best Crypto Coins for Online Casinos

Playing with crypto at an online casino is an increasingly popular pastime for many cryptocurrency holders or casual players. These web-based platforms function similarly to traditional web-based casinos. However, they allow you to deposit, gain, and withdraw crypto at numerous games, including Blackjack, Roulette, Poker, slots, etc. Some players have problems choosing the best cryptocurrency for an online crypto casino games. As you may know, the crypto market is prone to intense volatility and unexpected turns of events. This means…

What is Web 5? Jack Dorsey’s Alternative to Web 3

On June 10th, Jack Dorsey announced a new project being built by Block’s bitcoin-focused business unit, TBD. That project is known as “Web 5” – a so-called “extra decentralized web” that “puts you in control of your data and identity.” What could the Block Head have in mind with this new creation? Also, what happened to Web 3? A Decentralized Data Storage Solution When Jack Dorsey announced Web 5 over Twitter, he said it would be Block’s “most important contribution…

Top 5 Crypto Portfolio Trackers To Use in 2022

An active cryptocurrency trader cannot do without the support of a crypto portfolio tracker. Not if they want to be successful at trading or investing. A crypto portfolio tracker is an app enabling you to monitor the amount and value of your crypto assets across all wallets, exchanges, platforms, and blockchain networks in real-time. It allows you to track historic transactions, live crypto prices, gains, and losses. Above all, it prevents you from mismanaging your portfolio while getting the best…

Five Gold-Backed Crypto to Consider in the Current Inflationary Economy

Many traders are optimistic about the blockchain's development potential and recognize that volatility is inevitable with new technology. Some are asking how to invest in digital assets while maintaining some degree of stability. A relevant part of investors frequently mentions stablecoins as a valid investment alternative. Anchoring the value of crypto to a fiat currency can undoubtedly sound appealing. However, fiat money depreciates as inflation increases, making stablecoins less valuable. In this particular context, the crypto market is offering a…

What Are the Differences Between Stop-Loss Orders and Portfolio Stop Loss?

In a volatile market like crypto, investors always look for ways to protect their assets. In this market, just like any other, nobody wants to lose money. Consequently, it's essential to introduce a price floor for the value of your assets. These situations can benefit from stop-loss orders or portfolio stop losses. However, some people have trouble figuring out where they should set their prices. If you set them up too far away, you could lose a lot of money…

Can Hackers Steal Your NFTs? Understanding How Criminals Operate

In a world where NFTs are becoming more and more valuable, NFT theft is a real threat. Criminals and technology are evolving, and users need to move with care in this growing market. Our guide will provide more details on this dangerous trend and share guidelines on reducing the risk of NFT theft. Stealing NFTs – Myth or Reality? When it comes to staling NFTs, exploiting human mistakes is the most typical strategy for a hacker. Without the hacker's access…

Ethereum Name Service (ENS) – A Simple Guide

People can choose domain names that are easy to remember for their wallet addresses, thanks to the Ethereum Name Service (ENS). The secret to this technology is using a computer to understand this domain. When it comes to Web3 communication, ENS has the potential to make all the difference. In this guide, we'll go through some possible reasons for this. Ethereum Name Service (ENS) – A Definition To find out what a specific Ethereum address is, people can use the…

A Beginner’s Guide to the Impermanent Loss Phenomenon

Decentralized finance, or DeFi, presents several hazards to investors. Impermanent loss is a significant concern when dealing with this growing market. This guide will explore the meaning of impermanent loss concerning the liquidity pool. Moreover, the guide will also discuss how to calculate the difference and reduce the risk of this phenomenon. Grasping the Notion of Impermanent Loss There is a high probability of impermanent loss in every given situation. A net difference in the value of two tokens in…

NFT Minting – What Do We Know about Its Environmental Costs?

A multi-billion dollar sector was born out of the non-fungible token (NFT) market in 2021. Environmentalists are increasingly alarmed about the ecological impact of this growing sector.  Is NFT minting a cause for concern for our planet's environment? What options do we have in resolving this problem? These crucial questions will be the core of today’s guide. Minting New NFTs Minting, the act of adding a specific item to the blockchain, is similar to producing a physical coin. It has…

Fair Launch vs. Pre-Sale – What Is the Difference?

Every time we see a new crypto project entering the market, we notice different ways to launch a token. One of the teams' most common choices is leaving (or not) access to the token to early investors. In this context, we have all heard about pre-sales and fair launches. These two strategies represent different approaches to the crypto market. Our guide will clarify the main features of the two funding rounds for our readers. Launching a Crypto Project – Preliminary…