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What is Tezos? – Understanding, Different, and More

What is Tezos? – Understanding, Different, and More

Tezos (XTZ) is the blockchain network linked to the Tez and Lizzie digital token.

And Bezos not bases on the mining of tez. Instead, token holders receive the reward for taking part in the proof-of-stake consensus mechanism.

After the promising start and the highly successful Initial Coin Offering (ICO), also it troubled by numerous delays and legal issues.

However, it survived the cryptocurrency bear market, in part because of its unique proof-of-stake mechanism.

Also, the price of the more than tripled between October 2019 and February 2020 and reached record highs. As of February 2020, it was attracting attention again.

How Understanding Tezos?

  • Like Bitcoin and Ethereum, Tezos is the decentralized ledger that makes use of blockchain technology.
  • Like Ethereum, Tezos design to make use of smart contracts. The term “Tezos” is ancient Greek for “smart-contract,” according to the developers.
  • However, it goes beyond previous offerings. It takes the bright contract concept “one step further by letting participants directly control the rules of the network.”
  • Also,it  intended the evolving network. And flexibility is seen as the crucial aspect of the system. In particular, the lack of flexibility and scalability in Bitcoin created numerous difficulties and growing pains.
  • Also, Ethereum grew in large part because of its flexibility, and Tezos continues in that direction.

How are the Tezos Different?

  • It’s one of the differentiating elements of its governance. Most early blockchains rely on growth teams and mining communities to frame new design choices.
  • However, it attempts to shape the decision-making procedure into the network of users itself.
  • Also, Tezos takes a fundamentally different approach by creating governance rules for stakeholders to approve protocol upgrades that are then automatically deployed on the network.
  • And its developers claim. “When the developer suggests the protocol promotes, they can assign the invoice to paid out to the address upon endorsement and inclusion of their upgrade.”
  • As a result of this system, Tezos creates incentives for user participation in the core development process. That democratizes the development process and decentralizes maintenance.
  • In effect, it means that the Tezos network remains decentralize while other blockchains are decentralize.
  • It also includes the mechanism that allows for collective decision-making. Tezos token holders are allow votes on pending protocol developments.

Also Read: What Games to Play if You’re On a Budget?

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