Both Tezos (XTZ) and Ethereum (ETH) are extraordinary schemes, and both of them have their own pros and cons. Both of these are decentralized programs. Ethereum is for the purpose of value transfer, while Tezos serves to make smart contracts. Tezos was launched three years after the release of Ethereum. Ethereum has off-chain governance, unlike Tezos with on-chain governance and self-modifying blockchain.
Tezos has sometimes been called the “Ethereum Killer.” Let’s go through the main aspects of both of them for the purpose of critical evaluation and to determine if Tezos is better than Ethereum or not:
- Both Tezos and Ethereum make smart contracts, so there are differences between them in the languages these platforms use for coding smart contracts. An object-oriented programming language called Solidity is used in Ethereum, and it gives support to custom user types and libraries. On the contrary, Tezos uses Michelson, specially designed for writing smart contracts of Tezos. It has unique features, such as stack-based programming data structures and functions.
- Formal verifications can take place through Michelson but not through Ethereum. So one can depend on Tezos for high-value transactions, but a small error in the system of Ethereum can cause huge financial loss for any party.
- Michelson creates a bytecode that can easily make sense for small escrow contracts and hence is a suitable option for them, but Ethereum bytecode, on the other hand, is like assembly output and is hard for non-programmers to understand.
- Token of Tezos works on the delegated proof of stake, and that leads to better chances of earning Tezos rewards for stakeholders making and validating blocks on the blockchain.
- Tezos also provides a faster and more secure environment than Ethereum.
- In addition, the governance model of Tezos also avoids the risk of forks in the project.
- In Tezos, blocks are added by bakers, while validators serve this purpose in the case of Ethereum.
- In Tezos, regular users can lend tokens to bakers, but this would not in Ethereum. Tezos has 8000 tokens to participate in PoS, while Ethereum has only 32 ETH in this regard.
- In the off-chain governance structure of Ethereum, the whole team discusses the technological feasibility of Ethereum Improvement Proposals. On the other hand, Tezos is a self-amending platform, so it makes changes in the blockchain after votes by token holders.
- Ethereum is for the purpose of value transfer, while Tezos serves to make smart contracts.
- Tezos was launched three years after the release of Ethereum
- Ethereum has off-chain governance, unlike Tezos with on-chain governance and self-modifying blockchain
- Both Tezos and Ethereum make smart contracts, so there are differences between them in the languages these platforms use for coding smart contracts.