Tezos, the virtual currency that surpasses Ethereum
Tezos (XTZ) is a French cryptocurrency that can compare to Ethereum and Bitcoin. The platform is managed by a team of competent developers under the supervision of the couple Arthur and Kathleen Breitman. Other figures in the cryptocurrency industry including Tim Draper (a venture capitalist) took part in the project. This is why virtual currency is placed at the top of the list in the ranking of the best cryptocurrencies. Go to the following paragraphs for details.
Presentation of cryptocurrency
Tezos consists of a singular cryptocurrency. It is one of the most promising electronic currencies of the moment. Discover its history!
What is Tezos?
An amount of $ 18 million was deployed to launch the project in 2014. This is how Tezos first appeared. It is a platform with the main objective of creating decentralized applications. Its approach is similar to that of Ethereum, but the implementation is different.
Virtual currency has propelled its place among the giants like Bitcoin and Ethereum thanks to its algorithm. It has been designed to automatically receive updates. This feature allows members of the Tezos community to be indivisible and consistent. To take advantage of this privilege, you must store Tezos tokens in an electronic wallet.
In its language, Tezos describes mining procedures as cooking procedures. Minors correspond to “bakers” who are rewarded for each block signed and published. The team now registers more than 450 bakers who contribute to network security and maintenance.
Token owners can delegate their mining and voting rights to other members of the network. The baking procedures (creation of blocks) are declined in 3 stages. The first is to choose pieces to form the blocks. The second step talks about the deposit of the block. The final step refers to defrosting frozen blocks after the baker’s work.
How does cryptocurrency work?
Unlike Bitcoin, which uses the Proof-of-Work consensus, Tezos uses the Proof-of-Stake consensus to keep its blockchain running.
The Tezos consensus
The Proof-of-Stake consensus was chosen because it presents less governance risk. In the Proof-of-Stake consensus, minors can impose their own rule for their sake.
The consensus used is also less greedy in time and therefore in energy. Bitcoin owners pay around 400 million euros a year to keep their proof-of-work system running. The proof-of-stake system only claims a few million or less. This consensus underwent some modifications to become the DPoS (Delegated Proof-of-Stake).
Tezos consists of a single virtual currency thanks to its architecture. Its algorithm allows the use of an automatic network update system. This unique blockchain architecture is available in 3 levels: the network protocol, the transaction protocol and the consensus protocol.
Cryptocurrency has a modular structure, which means that each level (protocol) can be updated without the other levels being affected. Cryptocurrency thus does not require any fork or any modification (whether it is an in-depth modification or a modification of the rules).
The smart contracts
Tezos enables smart contracts. These are used to automate settlement procedures and eliminate the intervention of intermediaries. This deletion eliminates the costs generated by the intermediaries. Smart contracts can be used in any area of everyday life, such as in car parks, distributors, etc.
To define smarts contracts, the platform uses Michelson language. Ethereum uses its EVM machine (Ethereum Virtual Machine) to generate smart contracts, however users find it difficult to decipher it due to its complexity. On the contrary, Tezos offers these users simpler and less complex means of defining contract smarts with its language.
The pros and cons of this cryptocurrency
Tezos raises many disadvantages and advantages in its mode of operation.
Tezos is the first blockchain to solve the problem of hard forks, thanks to its algorithm which automatically receives updates. Behind the platform is an experienced team of developers with a strong reputation in the world of cryptocurrency.
The system used guarantees a high level of security thanks to the Proof-of-Stake protocol. Tezos is a scalable platform based on smart contracts that can be used by businesses as well as by individuals.
Tezos has been the subject of a misappropriation of funds scandal and lengthy litigation. A disagreement resides within the development team, which shakes the platform. The XTZ token is not listed in the majority of trading platforms, damaging the platform’s reputation.
In terms of transparency, the platform is not yet developed, because it is difficult to obtain information on the members of its team. Although the PoS system used is guaranteed to be perfectly safe, the risks are always present.
How to buy this cryptocurrency?
Here are the methods to follow to get XTZ tokens with ease.
Before starting the purchasing procedures, consider getting an electronic wallet in which to keep your XTZ tokens. Secure this wallet with a strong password. The purchase is made through an exchange between the XTZ token and other cryptocurrencies like Bitcoin or Ethereum.
To buy Bitcoin, choose the most reliable platform to date: Coinbase. After purchasing BTC, transfer the cryptocurrencies to a platform that supports exchange between BTC and XTZ.
Why buy Tezos?
With its performance, the Tezos course may experience a sharp increase in the coming years. In late 2018, the Tezos price reached 1.3 dollars with a capitalization of 792.67 million dollars. These figures are a valid reason to buy Tezos and enjoy the many benefits.
However, the risks are always present, this is why it is advisable to vary your electronic wallet by including other cryptocurrencies, like EOS, TRON, NEO… To get these digital currencies, the procedures remain the same (buy Bitcoins and then exchange them).