Tezos (XTZ) is a self-upgradable, open-source blockchain platform invented for hosting and creating decentralized applications and assets.
Tezos stakeholders can vote for governing upgrades for the protocol, including the amendments made to the governing process itself.
Tezzie or Tez is the native digital token for the Tezos platform. Tezos ICO raised $232 million in 2018, making it one of the largest ICOs in history.
However, internal management and legal crisis bedevilled this project between 2018 and 2020. Thankfully, these issues cleared up, and Tezos was on the path of traction due to the popularity of its staking mechanism.
Want to know more about Tezos (XTZ) but don’t know how to go about it? Don’t worry; you will find everything you need to know about the open-source project here.
How Tezos (XTZ) Work
Tezos is an open-source, decentralized blockchain platform that facilitates formal verification created for smart contracts, digital asset issuance, and governance. Tezos includes innovations in blockchain governance, elimination of the need for soft forks to introduce upgrades to its protocol soft forks.
Tezos (XTZ) is a self-upgradable open source project pioneering formal methods to secure key components involved in smart contract execution. For example, it can be used as an oracle system that allows reliable data sources (public agencies) to broadcast data published on the blockchain every second.
The Tezos token is what’s known as a utility token like Crypterium CRPT. Tezos can hand out block rewards for the most useful contributors in the Tezos ecosystem with a proof-of-stake, proof-of-work algorithm.
Stakers earn what’s known as a “baking” token from blocks they create or direct staking of their tokens with the Tezos blockchain.
Bakers also earn the transaction fees for baking transactions and endorsing blocks. That makes it possible to use blockchains with already established identities, making validators sign their respective transactions using cryptographic signatures.
How to Buy XTZ tokens
If you want to buy XTZ tokens, the first thing you’ll need is a wallet. Once you’ve created your wallet, follow these steps:
-Buy some ETH on Coinbase or Kraken using either a debit card or bank account. This step might take a day.
-Send your ETH to an exchange that trades XTZ tokens. You can find a list of exchanges here and choose whichever offers the best rates and trading volume in the country where you live. This step might also take a day to complete, depending on how busy the exchange is and how much ETH you’re trading.
-After the transaction has been completed, go back to your Ethereum wallet (the original one) and send your ETH to your new address on the exchange. This final step should take a few minutes at most, depending on how busy the network is.
As an alternative, you can also use Changelly or Shapeshift to buy some XTZ without having to go through any of that KYC process described above.
- Visit Coinmarketcap and find an exchange that trades XTZ.
- Go to Changelly or Shapeshift and buy some cryptocurrency for fiat (EUR, USD).
- Go back to the Coinmarketcap page and send your crypto from Changelly/ShapeShift to the exchange you found earlier. The final step might also take a few minutes.
History of Tezos (XTZ)
In 2016, Arthur Breitman – a former Wall Street quant turned computer programmer, and his partner Kathleen Barker announced Tezos. They went on to create a new blockchain-based smart contract platform.
The project was designed to solve the problem of trust involved in smart contracts developed on other blockchains.
Tezos’s market cap is currently worth over USD 7.2 billion and has 650 thousand transactions per day. The project was one of the first ICOs to raise over USD 230 million in its initial coin offering.
Internal disputes between Breitman and Barker had since plagued it before an eventual settlement which cleared up many of the issues that plagued the project from 2018 to 2020.
In 2019, the Tezos Foundation announced that they would launch a new blockchain platform in early 2020.
Tezos quickly becomes one of the most popular blockchains with partnerships across various industries, including business, finance, and government agencies.
Many companies have also adopted its language, which allows for easier development and usage of smart contracts.
One of the principal advantages of Tezos is that it can use a proof-of-stake consensus mechanism for its blockchain to ensure fast transaction processing times. That has allowed its users to implement smart contracts and transact on its blockchain without paying any transaction fees.
Tezos also uses a delegated proof-of-stake consensus mechanism to enable the weight of coin transactions to measure decentralization.
The XTZ token is divisible just like ETH and BTC, and it can be traded using platforms such as BitMex and Changelly.
The Tezos platform is governed by stakeholders who can vote for upgrades, which in turn help govern the network. That helps decentralize governance of the blockchain platform since tokens are distributed across many participants rather than just a single party or group that’s running it through mining.
The protocol governing this self-upgradable and decentralized blockchain platform where new features are added over time has been designed to be upgraded with no involvement from outside parties, making it more secure, reliable, and trustless.
Tezos has quickly become one of the most popular blockchains due to partnerships across various industries, including business, finance, and government agencies.
It’s also home to Tezos’ programming language, making it easier for developers to work with smart contracts. That said, this project has not been without its share of controversies stemming from governance.
Tezos (XTZ) FAQ’s
What can I use to buy Tezos?
You can buy Tezos with a debit or credit card on Coinmama, Coinbase, or any other exchange that hosts Tezos. You’ll need to create an account (get a Tezos wallet) and get approved before purchasing it.
Can Tezos help me lower fees associated with my existing accounts?
Tezos can help you lower fees associated with your existing accounts. You can transfer funds from one account to another without any fee.
What happens if I send my XTZ to an exchange or other service that is not compatible with the Tezos V2 chain?
If you send your XTZ to an incompatible service like an exchange, then the service will return them to your current wallet. That would be the same if you sent the tokens while using a software wallet.
How can I receive my Tezos coins with the upgrade?
XTZ coins can be received with the upgrade by sending them to a compatible wallet, such as a Tezos wallet. The coins will not be able to be received from other exchanges or third-party services.
What are the best wallets for storing Tezos coins?
The best wallets for storing Tezos coins are Ledger, Trezor, Enjin Wallet, and Stellar. These are the only other wallets that are guaranteed to support the new token after the upgrade. The other wallets may or may not support the new tokens, so it’s always best to check with them before sending your coins there.
Does anyone work on any mobile/web GUI wallet(s) compatible with Tezos (XTZ)?
No, there is no GUI wallet available for Tezos (XTZ) at the moment. However, if you are interested in one, we recommend checking out the following wallets: Enjin Wallet and Trezor.