Tezos Cryptocurrency Explained (Fast and Simple)
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Tezos (XTZ) is a proof-of-stake blockchain, created by Arthur Breitman, that supports smart contracts and dApps, utilizing formal verification for security. The platform features a unique governance model that allows protocol upgrades through community voting, promoting decentralization and adaptability. Despite facing legal challenges initially, Tezos has shown significant price recovery and continues to evolve to meet user needs.
Tezos Cryptocurrency Explained (Fast and Simple)
- 2. What is Tezos (XTZ) ? 2 ● Created by mathematician Arthur Breitman ● Token is called “Tez” or “Tezzie” ● ICO: July 1, 2017 ($232 million BTC and ETH!) ● A censor proof, open source, PoS blockchain ledger for smart contracts, apps, and assets. ● Uses formal verification (OCaml) to mathematically prove the smart contracts on their blockchain. ● Was troubled by legal issues and bear market, but a good price run since early 2019 CryptoJBro.com
- 3. Formal Verification 3 ● Uses functional language: OCaml, Michelson ● Used in sensitive industries such as: nuclear power, aircraft, and medicine ● There is 100% mathematical proof that a smart contract will behave correctly / accurately and avoid bugs or openings for hackers. CryptoJBro.com
- 4. (Delegated) Proof of Stake Validation ⬥ Participants are chosen at start of block cycle ⬥ Virtual validation of blockchain, called “baking” ⬥ Tez stakers have the chance to help validate, earning interest on coins as blocks are created. ⬥ Participants need 8,000 Tez, but can delegate. ⬥ 2 types of delegates: Bakers create blocks, endorsers agree on blocks. ⬥ Both need a Tez deposit and are rewarded. ⬥ Attackers lose their deposited coins. CryptoJBro.com
- 5. Tezos’ Unique Governance ⬥ The developers submit protocol changes along with a reward price for compensation. ⬥ This makes it self upgrading to remain viable. ⬥ Has an election cycle for voting on protocol ⬥ Makes governance decentralized for bakers. ⬥ Is flexible and adaptable to new use cases and pain points. Evolves based on network users. ⬥ Seems to be the best fit for future developments. CryptoJBro.com
- 6. Early Legal Battles ⬥ Dispute between president, investors and rights owners of the tech (the Breitmans) ⬥ Launch of the network was delayed. ⬥ Investors sued to get their money back. ⬥ Claimed that Tez was unregistered security ⬥ Launched in 2018, made a comeback early 2020 ⬥ Cointelegraph has a detailed report on this. CryptoJBro.com