Tezos is an open-source platform that allows developers to develop decentralized applications and issue new digital assets.A unique characteristic of this project was using a proof-of-stake consensus algorithm rather than a proof-of-work algorithm.
Even though Solana and Cardano are implementing PoS, and Ethereum is moving from PoW to PoS, Tezos continues to utilize PoS.
Overview of Tezos Tezos was founded in August 2014.XTZ, the native cryptocurrency of the platform, was highlighted in a white paper, followed by a position paper.According to the white paper, XTZ enables Tezos’ smart contract functionality and lets holders participate in on-chain governance.
The Tezos coin price is inflationary, with an uncapped token supply and a fixed issuance rate of approximately 5.51%.The PoS consensus mechanism generates more XTZ through inflationary means as time passes.If users (known as validators) confirm transactions, PoS consensus mechanisms reward them, while if they act maliciously, they punish them.Since XTZ tokens are used for fines and rewards, their supply has grown.
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Tezos Foundation oversees the platform’s development and ensures its success.Founded by the Tezos Foundation and developed by the community, Tezos is a proof-of-stake blockchain that works similarly but differently.
How is Tezos different from others? These three features serve as a summary of what sets Tezos apart from other blockchains:
1.Efficient energy use Tezos’ blockchain uses less energy and has a smaller carbon footprint than other blockchains.Since it uses a PoS consensus algorithm, it uses less energy than blockchains like Bitcoin, which uses a computer driven PoW algorithm.
Tezos transactions currently consume approximately 2.5 grams of carbon dioxide per transaction, while Ethereum transactions consume 79.67 kilograms of carbon dioxide per transaction, according to a report conducted by PwC.
There are approximately 17 people on the Tezos network, whereas the whole country of Ireland has a similar carbon footprint as Ethereum.
According to the developers of the Tezos platform, despite its growing ecosystem, the blockchain has already achieved an increase in transaction efficiency of over 70% since its launch.
Several DeFi protocols, decentralized exchanges (DEXs), decentralized applications (Dapps) and other projects utilize the Tezos blockchain.In particular, NFTs have become increasingly popular on the Tezos platform due to their low carbon footprint.Several new projects have been built on Tezos NFTs, including OneOf’s music NFT platform.
2.
Banking rewards Tezos transactions are validated through the Baking process rather than through staking.Blockchains commonly use staking based on Proof-of-Stake to verify transactions.In Tezos, the Baking Protocol achieves the same goal by permitting holders of XTZ tokens to delegate their tokens to bakers.Delegating XTZ to bakers will also allow on-chain governance and validation rewards to be provided without requiring 8,000 tokens (known as a “roll”).
The Tezos Baking system differs greatly from traditional proof-of-stake (PoS) consensus and delegated proof-of-stake (DPoS) blockchains such as EOS and Tron.The delegation must be included in the DPoS consensus to achieve consensus.Although Tezos’ delegation system is often the most convenient method for participating in the ecosystem, consensus is optional.
The Tezos community refers to the platform’s consensus as liquid staking to distinguish it from Delegated Proof of Stake.
3.Forkless upgrates Tezos released its latest blockchain protocol upgrade, Tenderbake, in April, allowing faster transactions and decentralized apps.Three months ago, Tezos announced Jakarta, their tenth development.Before, Tenderbake, Jakarta, and other upgrades did not require a hard fork.
Tezos is different from other blockchains because you can self-upgrade without disruptions.You must do a hard fork when significant upgrades are needed, like on Ethereum.A hard fork splits a blockchain into two versions, invalidating the older one.It’s a mandatory fork for developers and node operators.
Otherwise, they’ll lose money or get left behind.Bakers and developers can keep working during an upgrade on the Tezos platform.
Tezos blockchain upgrades usually require a proposal that’s presented and voted on by the community.If the proposal passes the on-chain governance, the upgrade will be tested on a separate blockchain to ensure it works.The upgrade is seamlessly transferred to Tezos’ main blockchain once it’s deemed stable on the test net.
This content is for informational purposes only and should not be construed as financial advice..
