The price Tezos today is 6.27 USD, and the trading volume in 24 hours - 621,263,569 USD. The crypto asset has grown by -5.01% over the day. Currently, the coin’s market capitalization is 5,390,654,362 USD, and has 860,053,614 coins in circulation with the max supply of 889,387,879 coins XTZ.
What is Tezos (XTZ)?
In 2014, Tezos set out to create what it called a "self-healing blockchain".
Difficult to implement, at its core, the concept was simple: Tezos allowed anyone who owned its XTZ cryptocurrency to vote on possible changes to its rules, and after a decision was made, the software was automatically updated to ensure that changes were made.
Using this system, Tezos sought to reduce the likelihood of branching its block chain by creating two separate cryptocurrencies with two different prices.
However, the idea that cryptocurrencies can be updated as part of their own software has had broader implications, starting with what could be called " blockchain management."
The emergence of Tezos changes the taxonomy of blockchains, effectively dividing crypto assets into two camps: "off-chain management "and"on-chain management".
In order for its system to work, Tezos users were allowed to vote through a process called "baking," in which they agreed to block the XTZ they owned in special contracts. Users can either become bakers or delegate XTZ to other bakers to win newly released XTZ over the protocol.
For this new design, the project was able to raise a record level of funding in 2017, before introducing its live blockchain to the public in 2018.
Who created Tezos?
The Tezos blockchain was created by husband and wife Arthur and Kathleen Brightman in 2014 with the help of Dynamic Ledger Solutions, a startup they founded to develop the project.
The team conducted an initial coin offering (ICO) in July 2017, raising the equivalent of $ 232 million (66,000 BTC and 361,000 ETH), which was the largest ICO at the time. After the ICO, the Tezos Foundation, based in Switzerland, was created to launch the protocol.
The Foundation also committed to acquire Dynamic Ledger Solutions, including all intellectual property rights to the Tezos blockchain, in accordance with the ICO agreement.
How does Tezos work?
The Tezos blockchain provides many features common to cryptocurrencies.
Developers can use its software to run custom programming logic (smart contracts) and develop new programs (decentralized applications) designed to copy products and services.
However, its voting functions required a different design. In particular, the Tezos blockchain is divided into two parts:
- Shell code that changes based on user votes. It is also responsible for interpreting transactions and administrative operations.
- Protocol-code responsible for sending suggestions to the shell for verification.
Tezos LPoS Blockchain
To keep its network synchronized, Tezos uses a variation of the classic proof-of-stake (pos) consensus called liquid proof-of-stake (LPoS).
Similar to traditional pos mechanisms, LPoS is an algorithm used by computers running Tezos software to secure the network, verify transactions, and distribute newly created XTZ.
In order for participants (nodes) to be involved in management, they need to create an XTZ stack in a process that Tezos calls "baking". To become a baker, a node needs 8000 XTZ (also called a roll).
Users can also delegate their tokens to other bakers, distributing votes among other users so that they can earn XTZ rewards on its live blockchain.
Bakers are interested in fair work because users can easily switch between bakers to whom they delegate XTZ, depending on their voting preferences.
- To own your crypto assets, you need to manage your own private keys.
- Ledger hardware wallets make private key management easy and secure.
- Each unique 24-word recovery phrase creates a new set of private keys.
- Make sure you secure your 24-word recovery phrase properly.