What Is Tezos?

Last Modified:
May 1, 2024

Tezos is a decentralized and open-source blockchain network that supports smart contracts and decentralized applications. Here’s a look at its key features and aspects:

Token: XTZ

XTZ is the native token of the Tezos blockchain. Aside from its use in minting, transacting, and settling payments, it is also used for governance. XTZ holders are allowed to propose and vote on amendments to the blockchain.

Support for Smart Contracts, NFTs, and dApps

Like the popular blockchain Ethereum, Tezos uses smart contracts to store and transfer assets such as crypto and NFTs. It also offers a reliable platform for developers to build and deploy decentralized applications, such play-to-earn games.

Self-Amending Governance

What sets Tezos apart from many other blockchains is its ability to evolve and upgrade itself. Tezos was designed to encourage active community governance and participation by allowing users to propose and vote on possible changes to the blockchain. Based on the results of the vote, the chosen upgrades are automatically implemented, allowing Tezos to integrate new developments and solutions without the need for a hard fork.

Proof-of-Stake (POS) Consensus Mechanism

Tezos uses a Proof of Stake consensus mechanism to add new data and make changes to the network. It is more energy-efficient than Proof of Work (the consensus mechanism used by Bitcoin).

Token Staking

In Tezos, the process of validating and recording transactions is called "baking." To participate, users stake their tokens for the chance to bake transactions in exchange for a reward. If they lack the funds, equipment, or know-how but still want to participate, they may opt to delegate tokens to a designated “baker” and receive a fraction of the reward.

Smart Contract Verifiability

Tezos can formally verify smart contracts using advanced mathematical techniques that keep the blockchain reliable and secure. This makes Tezos a good choice for building dApps that require high levels of security, like financial and legal applications.

Tezos may not be as popular as Bitcoin, Ethereum, and other leading blockchains, but its flexibility, security, commitment to community participation, and other strengths make it an attractive platform for developing smart contracts and dApps.

To learn more about its features and use cases, check out the Tezos website.

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