Tezos was created to run decentralized applications and smart contracts. It was first suggested in 2014 and the XTZ mainnet launched in 2018. Since then, it has been growing steadily and is now seen as a competitor to the Ethereum network.
Various organizations worldwide support the Tezos ecosystem, such as the Tezos Foundation, a Swiss non-profit entity that promotes awareness and adoption of the Tezos blockchain through different initiatives.
XTZ raised $232 million in a fundraiser in July 2017, making it one of the biggest blockchain project fundraisers. The Tezos mainnet launched successfully in 2018 and did well despite the bear market.
How It Works?
Tezos smart contracts use the Michelson programming language, unique to XTZ. They are usually written in higher-level languages like SmartPy, Ligo, or Archetype, which then compile to Michelson. Gas is used for transactions on the network and is converted into fees in Tezos’ cryptocurrency, Tez (XTZ).
It operates on a Proof of Stake (PoS) blockchain. Specifically, it utilizes a form of PoS known as Liquid Proof of Stake (LPoS), a distinctive feature of XTZ.
Individuals holding more than 6,000 Tez can act as delegates, known as “bakers,” who generate, validate, and distribute new blocks on the Tezos blockchain, as well as endorse blocks produced by other bakers. If a token holder lacks 6,000 Tez or prefers not to establish the required hardware, they can delegate their coins to a baker.
Use Cases
XTZ, similar to other blockchain networks, offers a quick and secure method for validating financial transactions.
In September of 2019, the cybercrime division (C3N) of the Gendarmerie became one of the initial government agencies to utilize Tezos for validating their judicial expenses.
Tezos is also capable of transferring ownership of assets that are not easily sold, like real estate, art, and jewelry. For example, MountX is using XTZ to tokenize real estate in Mexico.
The Tezos NFT ecosystem is gaining popularity with big names such as Manchester United, Ubisoft, Redbull Racing, McLaren, and others joining in.
Conclusion
Tezos may not have as much network activity or DApp development as Ethereum, but that doesn’t mean it lacks value.
Its innovative method of dynamic upgrades and on-chain voting sets it apart from other platforms, giving it a competitive edge in the long term.
XTZ has drawn in a natural community of creative individuals who appreciate the decentralized nature, energy efficiency, and focus on user control of the network.
It has demonstrated its usefulness and strength, making it attractive to government and business clients alike.