What is Tezos? Tezos (XTZ) is an Ethereum-like Blockchain network. It makes it possible to create censorship-proof smart contracts, tokens, and dApps. In this article, you can find answers to questions that investors wonder, such as what Tezos is, what it offers, what is XTZ, what it does, how to buy it. cryptocoin.com we have prepared for you.
What is Tezos?
Much like Ethereum, Tezos is a Blockchain network created for the purpose of producing dApps and smart contracts. However, unlike Ether, Tezos works with the Proof-of-Stake mechanism instead of Proof-of-Work. However, the network allows people with cryptocurrencies to play a role in Tezos’ future. It does this through its own altcoin asset, XTZ. In short, it also has a governance model that Ethereum does not have.
What does Tezos offer?
The most striking and different aspect of the Tezos network is its governance model. This model makes it a self-modifying open-source blockchain platform. The Tezos website describes the project as a “self-developing” blockchain. Accordingly, the network can evolve and change without being hard forked, that is, without dividing itself, thanks to the governance model. This includes applications and products such as dApps built with smart contracts on the Blockchain. In other words, Blockchain allows developers and users to transact in a dynamic network.
However, Tezos network uses Proof-of-Stake mechanism unlike Ethereum. Accordingly, there is no need for miners to secure the network and issue cryptocurrencies. Instead, there are validators that verify transactions on the network and do token staking. At Tezos, people who approve transactions are called “bakers” and the verification process is called “baking”. The PoS model is preferred because it uses much less energy than PoW. However, it should be noted that the Ethereum network will also switch to PoS on September 15, 2022.
What is XTZ? What does it do?
XTZ is Tezos’ native cryptocurrency. This altcoin lives within its own Blockchain, but there is also a version on Binance Smart Chain. The primary use case of XTZ coin is governance. Altcoin holders gain the advantage of directly participating in the management of Tezos and voting on decisions made. They may also present various proposals to the community for change on certain topics.
Another use case for XTZ coin is payments. Developers and users on the network are required to pay with XTZ to run smart contracts. However, these gas fees are quite low compared to Ethereum. The reason for this is the Proof-of-Stake model. However, XTZ holders can staking their assets by locking them into a smart contract. This is called “cooking”. Users who lock their assets earn additional XTZ rewards based on the lockout maturity. So they earn passive income.
What is Tezos? How to get XTZ?
The Tezos network is the 39th largest altcoin project in the market according to available data. For this reason, cryptocurrency is traded on many major cryptocurrency exchanges. Among these exchanges, big players such as Binance, OKX, Kraken, Coinbase stand out. To buy XTZ, you must be a member of one of these exchanges, verify your account and deposit an asset in your wallet that matches the pairs. You can then place a buy order for the altcoin.
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