Crypto Academy

What Are the Advantages of Tezos (XTZ) Cryptocurrency?

Atis. Sh

Tezos (XTZ) review

Tezos (XTZ) is a blockchain network that is linked to a “Tezzie” or a “Tez”, which is a digital token.

Tezos is a blockchain protocol that deals with applications and assets which is open-source and also backed by a worldwide community of researchers, builders, and validators.

It works by giving a reward to token holders for their participation in the proof-of-stake (PoS) consensus mechanism. So mining Tez is not part of the platform. The developers boast on the security and upgradability of the platform and they also say that it is built to last.

Due to its network, which is regarded as flexible and powerful, Tezos attracted a huge amount of attention when offering its initial coin (ICO). Plunging itself into the crypto world, it saw a revenue of $232 million, which ultimately gave it the rank as one of the largest ICOs of all time.

Tezos is a blockchain, which is regarded as self-amending, and one of its strengths is its ability to improve upon itself by upgrading it over time. By being self-amending, Tezos is able to upgrade itself without needing to create a fork (split the network into two different blockchains). 

Similar to another blockchain-based platform known as Ethereum, smart contract functionality is supported by Tezos and this also makes building decentralized applications (Dapps) possible to developers. Tezos is also a decentralized platform, the same as the majority of other blockchain platforms.

Tezos all-time price movements. Source: Coinmarketcap

The majority of the early blockchain platforms rely on mining communities and their development teams to build the decision-making process into the network of users itself in order to formulate new design choices. Contrary to this, Tezos works in a different way by attempting to build the decision-making process into the network of users itself. 

What Are Tezos’s Main Advantages?

When referring to its advantages, among many others which make this cryptocurrency very innovative and a strong competitor worth investing in are:

  1. Seamless upgrades
  2. Affordable staking 
  3. Accessible governance
  4. Verifiable smart contracts
  5. Education initiatives

Let’s take a look at these advantages one by one below:

  1. Seamless upgrades

There may be downtime or price fluctuations experienced by blockchains during times when hard fork upgrades are around the corner. Steemit had this problem recently, for example. Tezos is able to prevent these issues because of its self-amending ledger.

  1. Affordable staking 

Tezos makes it possible for its users to delegate or stake their tokens and receive rewards in a way that is relatively affordable. Though individual limits may be set by some bakers, generally there is no minimum amount of tokens that must be delegated by a user. Every 7 cycles or 20 days approximately, payments are received by users who delegate their tokens.

  1. Accessible governance

Tezos is a combination of the best elements of delegated proof-of-stake and proof-of-stake. Liquid proof of stake makes it possible for the majority of the participants to have a chance to influence the network, in addition to either directly or indirectly generating or distributing token rewards.

  1. Verifiable smart contracts

Thanks to its formally verifiable contracts, Tezos’s smart contracts may be able to provide a higher level of security and resistance against malicious attacks. As a matter of fact, Tezos being free from attacks is partially the merit of very few dApps being hosted by the platform at the current time.

  1. Education initiatives

In order to encourage the study of the platform by developers, Tezos has offered generous grants. Till now, at least $30 million worth of grants have been given away by Tezos and the platform is also partnering with Kingsland University to make online training available soon.

Should I Buy or Trade Tezos?

There are many reasons why ZCash has become widely accepted. ZCash has a lot to offer to potential investors and cryptocurrency explorers. As an added benefit, as the roadmap is followed and after future updates, we can expect to see the advantages only increasing more.

Takeaways

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