What is Tezos?

Tezos (XTZ) is a blockchain network that operates on smart contracts, akin to Ethereum, but with a distinctive feature. It aims to provide an advanced infrastructure that can evolve and improve over time without the risk of a hard fork, a challenge that Bitcoin and Ethereum have faced. Tezos is designed with the intention of being upgradable and enduring. It uses a smart contract language that provides the accuracy necessary for high-value use cases. Tezos holders can vote on proposals for protocol upgrades, fostering a community-driven approach to development. This open-source platform aims to stay at the forefront of blockchain technology to ensure its future relevance.

How does Tezos work?

Tezos operates on a unique process known as "baking". Participants, or "bakers", stake 8,000 XTZ to get involved with the network's governance. Bakers are then tasked with voting on proposed changes to the blockchain's code in a four-step procedure that takes approximately 23 days. Proposals that receive support from the majority of participants are tested for 48 hours and are fully implemented if they are backed by a super-majority. Tezos uses a proof-of-stake consensus mechanism, where anyone can become a validator and contribute to the smooth running of the network by making a security deposit. Compensation is provided to those who contribute positively to the blockchain, encouraging honest behavior.

What are the potential use cases for Tezos?

Tezos aims to provide a platform for high-profile businesses and applications. Its smart contract language is designed to provide the accuracy required for high-value use cases. Tezos' approach to blockchain technology may make it a suitable platform for experimenting with digital currencies. Its unique staking process, known as "baking", allows users to participate in the network's governance, making it an attractive option for those interested in a more democratic approach to blockchain technology. Furthermore, Tezos' energy-efficient proof-of-stake algorithm may make it a suitable platform for eco-friendly blockchain applications.

What is the history of Tezos?

The technology underpinning Tezos was first proposed in a white paper released in September 2014 by Arthur Breitman, who wrote under the pen name L. M. Goodman. Breitman and his wife Kathleen founded a startup called Dynamic Ledger Solutions, which was tasked with writing the code for the Tezos protocol. The Tezos mainnet launched four years later, after a series of delays. A token sale for Tezos was held in July 2017, raising a total of 65,681 BTC and 361,122 ETH, which was worth $232 million at the time, resulting in a substantial initial coin offering. Since its launch, Tezos has continued to evolve and adapt, with its community actively participating in its development and governance.