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Tezos (XTZ) is a blockchain-based cryptocurrency and smart contracts platform for decentralized applications (dApps). Since its launch in 2018, it has generated a lot of buzz within the crypto community.
Brief history of Tezos
Arthur and Kathleen Breitman founded Tezos in 2014, based in Switzerland. Three years later, in just two weeks, the Tezos Foundation raised $ 232 million in an unlimited Initial Coin Offering (ICO) and was accepting donations from both Bitcoin and ether. Unlike most of the new blockchains at the time, the blockchain is not based on proof-of-work. In the next section we’ll discuss some of its differentiators and help you better understand how it works.
Almost a full year after the ICO closed, the beta version of Tezos was released on June 30, 2018. Since the errors were recognized, the betanet should run until it is stable and errors have been corrected.
In September 2018, Tezos carried out the long-awaited official launch of its mainnet, which at the time had a token offering worth more than $ 1 billion.
A significant number of blockchains are offered in the crypto space these days – which makes it imperative for Tezos to stand out. Tezos differs in the implementation of its self-adjusting mechanism, which focuses on formal verification and the use of a “proof-of-stake” -based consensus algorithm.
Tezos is a self-changing crypto ledger. The protocol that validates blocks and implements the consensus algorithm can change itself. Due to this system, the log is also updated passively in a decentralized manner. Each update of the protocol goes through several test cycles and receives relevant input from the community. This means that every development has the stamp of acceptance by most of the Tezos community. This prevents a hard fork from splitting into a community.
Tezos uses robust programming language technology to statically ensure the correctness of the implementation and to limit future errors or attacks in the runtime. The programming languages used by Tezos belong to the family of functional programming languages.
For example, the code base is mainly in the programming language of. written OCaml, being its robust static system and memory management system forbid many common runtime errorssuch as zero point exceptions or buffer overflows.
On the other hand, Michelson, the intelligent contract language that runs on Tezos, was specifically designed to facilitate the legibility and verifiability of the contract while it is low enough to meet the performance predictability requirement of on-chain execution.
“Proof-of-stake” -based consensus algorithm
The existing Tezos protocol is based on a consensus algorithm called “Liquid Proof-of-Stake” (LPoS).
PoS differs significantly from Proof-of-Work (PoW). It perceives the portion (number of tokens) that users hold as the primary resource used by producers to build the block pool (in the Tezos ecosystem they are called bakers).
Bakers are randomly chosen using a lazy infinite priority list of backslots in the Tezos consensus protocol to bring a block to a certain level. In order to be able to take part in this random selection, a baker must have at least one roll of tokens (equivalent to 10,000 tokens). The number of baker slots corresponds to the number of rolls a baker holds.
Participants who do not have enough tokens or who do not want to bake blocks instead can delegate their tokens to another baker. This voting delegation is called Liquid Democracy. They retain ownership of their tokens, but increase their delegate’s share of the random allocation of baking places.
Is there a place for the Tezos POS blockchain in the future?
The current scenario looks like this:
The PoW consensus algorithm is the most widely used in blockchain technology. It is used by the two most famous cryptocurrencies: Bitcoin and Ether. However, with PoW, it requires extensive use of computational resources in mining and is considered expensive, unsustainable, and inefficient.
The possible future scenario with a blockchain platform like Tezos would look like this:
With the Tezos PoS blockchain, participants would only need computing resources to keep the network running. As a result, it is inexpensive when compared to other blockchains that use PoW and other PoS processes.
With this in mind, Tezos has a number of unique technological innovations that changed the blockchain landscape. If it stays that way, we may expect more from Tezos in the future.
Visit the Official Tezos website to learn more! For the latest price, social media links, block explorer, and more, check out CoinGecko’s Tezos page!
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