Tezos is one of the most innovative open-source cryptocurrency projects, with a unique blockchain built by developers from scratch. Tezos is a secure platform for running smart contracts. The blockchain platform supports cross-border transactions, dApps, and tokens. The project was created on the principles of security and decentralization.
DeFi is a trend in the blockchain industry. As of May, Spring 2021, users have locked over $100 billion in DeFi apps.
More decentralized financial applications are also appearing on Tezos, and the number of calls to smart contracts in January increased by almost 1.5 hundred times compared to 2020. At the same time, the number of active Tezos users is growing on average by 8% per month. In total, about 1.5 million accounts with a non-zero balance are registered on Tezos.
What is it and should you consider Tezos as an option for your investment? Learn more about the project further.
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How Does Tezos Work?
It is not just its decentralized nature and cutting-edge technology that makes Tezos stand out. Tezos has taken its infrastructure one step further by allowing users to vote on proposed updates on a real blockchain.
The Tezos system encourages advanced blockchain developers to participate in improving Tezos and makes the process of maintaining and developing the network decentralized.
The crediting of tokens to the developers’ accounts after the approval of their proposed changes allows the system to immediately pay compensation for the work they have done. They don’t need a corporate sponsor, employer, or other traditional sources of funding. Developers are free to work on what interests them the most.
The main competitor to Tezos is the Ethereum blockchain platform. But unlike smart contracts on Ethereum, the code of smart contracts on Tezos is formally verified. This reduces the risks that a bug will be found in the application after its launch, which will lead to losses for users and project investors. In addition, Tezos has a high transaction speed and hundreds of times lower fees.
What Are the Advantages of the Tezos Platform?
Tezos has many advantages over other digital giants including Ethereum, EOS, and Cardano. Its Advantages make investors feel confident that this flexible altcoin has the potential to be a profitable financial venture.
Here are the main advantages of Tezos:
– The platform is highly scalable. Given the fact that it is not only a cryptocurrency but also an innovative blockchain platform, many believe Tezos has promising growth potential. Tezos can be used in any business.
– Tezos has impressive network management. All Tezos coin holders can propose and vote for changes, creating a community in which all users can be heard. Unlike other cryptocurrencies, Tezos has built the decision-making process into the users’ network, so Tezos does not need to rely only on developers and miners. Its democratic nature also allows for permanent changes without radical hardforks.
– The system is very flexible and has automatic updates, often called self-healing. By its very nature, this means that updates occur without splitting into two different blockchains. In other words, since changes are made by users, the occurrence of hardforks is excluded. This useful feature virtually eliminates stagnation and betters implementation of improvements as they become available.
– Tezos uses a so-called baking process which is much progressive. Tezos describes it as the operation of signing and publishing blocks on the blockchain. Baking is a multi-step process that requires users to post a deposit and a stake of 8,000 XTZ. The baking process is not only affordable, but it is also a great way to generate income through rewards in XTZ, which is a great plus for investing in it.
Cons of Tezos
Of course, there is nothing that does not have its own shortcomings. Tezos began as a cryptocurrency blockbuster with celebrity sponsors and a strong development team and turned into endless litigation and internecine strife. Despite this, the team was able to get on the road to fix it, change its internal structure, issue tokens to investors, and launch the platform.
– The popularity of Tezos has suffered due to internal problems. In fact, some investors still see Tezos as a young platform, so they prefer to stick with more mature big players like Ethereum and Bitcoin.
Let’s Summarize
Tezos has a project intent on creating truly decentralized consensus mechanics that will avoid political friction and hardforks that occur on other blockchains. A struggle erupted within the project shortly after its inception, which caused a year-long delay in further development.
But, considering all the features of the Tezos offer, its product remains an interesting investment opportunity in the cryptocurrency market, capable of solving the management problems that are typical for many blockchain projects.
