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Home ยป Tezos (XTZ): What To Know & Why You Should Care

Tezos (XTZ): What To Know & Why You Should Care

What is Tezos?

Tezos is a new decentralized blockchain that governs itself by establishing a true digital commonwealth. It facilitates formal verification that mathematically proves the correctness of the code managing transactions and boosts the security of the most sensitive or financially weighted contracts.

How Tezos is different from other blockchains

If you’re just getting started with cryptocurrencies, this might sound like a bunch of mumbo jumbos. But if you want to understand what makes Tezos different from other blockchains, it’s helpful to break this down.

Tezos has two separate parts: a settlement layer and a proof-of-stake consensus protocol. The settlement layer’s job is to record and transfer value units like XTZ, Bitcoin, or fiat currencies. It achieves this using conventional database techniques.

The consensus protocol’s job is to determine whether blocks can be added to the chain. The rules that govern this process โ€” what we call “Tezokracy” โ€” are determined by the stakeholders within the network. This is one of Tezos’ most exciting features: The network can upgrade itself by changing its own rule sets through voting mechanisms built into the protocol.

An alternative to the Ethereum blockchain

Tezos is designed to overcome some limitations of the Ethereum blockchain by creating a more flexible platform and more efficient platform than Ethereum. This can be done through formal verification, which allows code to be mathematically proven correct before it’s executed on the blockchain. It also allows for updates to the protocol without putting the entire network at risk of splitting into two separate chains.

Where can you buy Tezos (XTZ)?

If you’re interested in buying Tezos (XTZ) tokens, you can do that by using an exchange. Currently, the best bet is Gate.io, which is a cryptocurrency only exchange. If you want to purchase XTZ with fiat currency (USD, EUR, etc.), you’ll need to buy bitcoin or ether first and then transfer it to another exchange like Binance or Bitfinex.

Why buy XTZ?

Tezos (XTZ) is one of several cryptocurrencies that has seen a significant rally in recent months. It’s up about 130% since Sept. 22 and is trading near $4.38 as of this writing, according toย CoinMarketCap.com.

Image by CoinMarketCap.com

No other cryptocurrency has achieved the level of hype that Tezos has managed. It currently ranks 45th on Coinmarketcap with an impressive market cap of $3.9bn, making it one of the most valuable cryptocurrencies globally.

Conclusion

It’s still early days for the blockchain, but there are a few projects that look like they’ll be fascinating to watch. One is Tezos, which has been getting a lot of buzzes since it launched in July 2017. The Tezos team hasn’t been shy about their ambitions. They’re trying to build a platform to handle everything from self-executing financial contracts to identity and reputation systems to decentralized applications. A considerable part of what makes Tezos different is its governance system. Tezos uses an automated voting process to update the network, which means that users can vote on proposed changes before they affect them. This is supposed to help avoid the kind of hard forks we’ve seen with Bitcoin and Ethereum, where developers have ended up creating entirely new versions of the currency because they couldn’t agree on a single way forward.

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