To create a self-amending blockchain, Tezos was set out in 2014. Though complex in implementation at the core, its concept was quite simple, as it allowed anyone who owned the XTZ cryptocurrency to vote on any changes to the rules. Once decided, the software would update automatically to make sure that the changes were made. This system was used by Tezos, aiming to reduce the chances that the blockchain might fork, thus creating two different cryptocurrencies at two distinct prices.
What is Tezos?
Tezos XTZ is known to be a blockchain network linked to a digital token, known as a tez or a tezzie. It is an open-source blockchain protocol for the applications and assets backed by the community of researchers, validators, and builders.
It is not based on mining, but in fact, the token holders can receive a reward by taking part in the proof-of-stake (PoS) consensus mechanism. This mechanism is assumed to be upgradable, secure, and build to last. Tezos has a flexible and robust network, as it drew massive attention in the initial coin offering (ICO). By bursting into the crypto space, it is among the largest ICOs of all time.
How is it different from other Blockchains?
As Tezos is a self-amending blockchain, therefore, so it can evolve itself by upgrading over time. Tezos can upgrade itself without having to fork the network into two different blockchains. Tezos can support smart contract functionality and helps developers build decentralized applications (dApps), just like Ethereum, a blockchain-based platform.
To formulate new design choices, the majority of the early blockchains happen to rely on mining communities and development teams to build any decision making process into the network of users. But Tezos is a particular blockchain platform that attempts to build the decision-making process into the network of users itself.
Advantages of Tezos
- Proof-of-stake consensus mechanism is utilized by Tezos in which participants tend to offer only the necessary computational resources so that the network keeps working. Therefore, it is inexpensive as compared to other blockchains that use PoS and PoW processes.
- With the Tezos blockchain, the stakeholder is allowed to participate in the consensus mechanism and rewards for contributing to the stability & security of the network.
- Tezos also allows the blockchain developers to create smart contracts and develop dApps, just like other blockchain platforms.
- When it is about code correctness and safety, Tezos provide both for the high-value use cases.
- The aim of Tezos is to provide the safety and code correctness required for assets and other high-value use cases. There is a modular architecture and formal upgrade mechanism possessed by Tezos.
Tezos has faced a tough start, but there is no doubt that it is becoming a promising platform as many powerful technical innovations in terms of consensus mechanism, self-upgrade procedures, and smart contract security are offered. There is a supportive community with Tezos that is incentivized to improve the protocol and its ecosystem. Because of the various advantages, Tezos provides an excellent opportunity to become a dominant chain in the cryptocurrency space.