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- Tezos is a blockchain network that works on the proof-of-stake (PoS) consensus.
- It offers peer-to-peer (P2P) transactions through its native token XTZ by deploying smart contracts through its decentralized platform.
Tezos is a blockchain network that works on the proof-of-stake (PoS) consensus. It offers peer-to-peer (P2P) transactions through its native token XTZ by deploying smart contracts through its decentralized platform. Tezos facilitates decentralized applications (DApps) and is considered one of the strongest competitors to Ethereum.
Launched by Arthur Breitman in 2014, its main aim is to offer solutions to protocol development. Tezos aims to make the decision-making process faster and allows the stakeholders to take big decisions. Its governance protocol enables the market participants to either accept or reject any changes or upgrades without relying on the hard forks. This allows the users to be actively involved and participate in the development or upgradation process of democratic blockchain governance.
How Does Tezos Work?
Tezos mainly operates on three protocols – the Network protocol, transactional protocol, and the Consensus protocol. The Network protocol is designed to broadcast the block that is created though a chain format. So, whatever is required by the blockchain network such as connecting the user with the blockchain, broadcasting the final block to the blockchain is all done through the network protocol.
The transactional protocol is there to govern the validity of the transaction. It is an information storage device that holds or maintains the blockchain information that are relevant to the peer-to-peer interactions and other blockchain activities. The consensus protocol is the state-of-art protocol that allows one to reach a consensus for any modification or upgrades. With the three sets of protocols, Tezos is able to make as many as 40 transactions per second (TPS).
Is Tezos a good investment for you?
Tezos is ranked 37 on CoinMarketCap. According to CoinMarketCap, the Tezos is trading at US $4.64 USD with a 24-hour trading volume of US $1,35,84,70,110. At the time of writing (BST 8:06 am), Tezos was up by 9.61% in the last 24 hours. Tezos currently has a live market cap of US $3,97,63,63,982. It has a circulating supply of 85,70,26,791 XTZ coins. Tezos can definitely be dubbed as an intriguing cryptocurrency because of its governance and self-amending features. The project caught the attention after it managed to raise US $232 million ICO funding.
Experts believe that project already has the potential to function itself as a decentralized protocol without the risk of hard forks and division. With its unique protocol set up, it has gained prominence and is within the top 40 cryptocurrencies as per market cap. There has been a growing volume of investors due to its popularity as a safe protocol and its ability to involve the investors in the decision-making process.