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Highlights
- Tezos, a blockchain with linked XTZ cryptocurrency, has shown improvements in power usage
- The PwC report can be a big boost not just for Tezos but for the entire blockchain ecosystem
- Tez coin hasn’t performed as well as some other altcoins like Ether and AXS in 2021, but it may now find backers
That cryptos consume a lot of energy was the theme which dominated 2021. Bitcoin, the largest crypto, was caught in the eye of the storm and lost value after its high power consumption was called out.
In this light, a report on energy consumption by Tezos coin, a blockchain network, comes as a sure boost for the crypto space. This report by PwC reveals strong improvements by the Tezos network with respect to power usage.
Also read: Is Bitcoin better than gold as hedge against high inflation?
What is Tezos cryptocurrency?
Every crypto is linked to a project that has something to do with the distributed ledger technology. Tezos is a blockchain that claims to have superiority over both Ethereum and Bitcoin with respect to scalability and transaction speed.
Tezos crypto improves on energy use: What is XTZ coin price prediction?
The project was launched with an initial coin offering (ICO). Tezos uses proof-of-stake consensus, which Ethereum is looking to adopt in the near future. The network allows users to participate in governance by staking their XTZ coin holding. Smart contracts and DApps can be built using the network services.
Also read: Explained: Cryptocurrency categories – DeFi, NFT, Metaverse
What is Tezos coin or XTZ or Tez crypto?
As stated earlier, each crypto is linked to some blockchain project. XTZ or Tez is to Tezos what Ether is to Ethereum. The native token of Tezos blockchain, XTZ has immense value within the project. It is used to pay network fee and for staking and governance purposes.
Tezos coin has a market value of over US$4.5 billion as of now. It ranks among top 40 cryptos by market cap, but much below Bitcoin and Ether, which rank #1 and #2 respectively. It started in 2017 with a very successful ICO.
Also read: Is investing in altcoins better than Bitcoin?
PwC Tezos energy consumption report
Tezos joined forces with PricewaterhouseCoopers Advisory SAS to bring out its power usage stats.
The report states that in spite of a spike in activity on Tezos blockchain, the network’s electricity usage is showing promising improvements. Each transaction carried out on Tezos network manifested an increase in energy efficiency by 70 per cent.
It has been estimated that Tezos uses much less power to carry out tasks as compared to Bitcoin and the most adopted blockchain network, Ethereum. For nearly 50 million transactions, Tezos exhibited carbon footprint of only 17 people.
Tezos coin price prediction
Tezos started 2021 with a price tag of nearly US$2. It soared to over US$7.5 by early May, and then the token entered a bearish phase that lasted until mid-July. In early October, Tez touched US$8.5.
Source: Data provided by CoinMarketCap.com
As of now, Tez is trading at nearly US$5.5. The energy consumption report can lead to a favorable stance by crypto investors, and Tez may at least regain the US$8 price tag by the first month of 2022. Besides, bears seem to have quit the crypto market, with Bitcoin trading over US$50,000.
Bottom line
Tezos energy use report comes as a major boost for the cryptocurrency. Many crypto critics have cited the high power consumption as a key flaw in the blockchain technology. Tezos is entering non-fungible token (NFT) sector and has partnered with firms line Honda. In 2022, Tezos may emerge as bigger competitor than Solana to Ethereum’s hold in blockchain.
