What is Tezos (XTZ)?
- Native Blockchain:
- Tezos operates on its own native blockchain. Tezos is unique due to its on-chain governance mechanism, which allows protocol upgrades without needing to fork the network.
- Consensus Protocol:
- Tezos utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism. In the context of Tezos, it's often referred to as "Liquid Proof-of-Stake" (LPoS) because holders can participate in validation directly or delegate their validation rights.
- Trilemma (Security, Speed, Scalability):
- Security: The Tezos protocol is designed with a focus on formal verification, which can ensure the correctness of code, enhancing its security.
- Speed: Tezos' block time is roughly one minute, allowing for moderate transaction speed.
- Scalability: As with other blockchains, scalability is an area of continuous development. Tezos' on-chain governance allows it to adopt improvements without divisive hard forks.
- Founder / Date Founded:
- Tezos was founded by Arthur Breitman and Kathleen Breitman. The project's initial coin offering (ICO) was conducted in 2017.
- Objective / Use Case:
- Tezos aims to provide a blockchain that can evolve by upgrading itself, with stakeholders governing changes. This avoids hard forks and promotes long-term upgradability and security.
- Total supply / Limit or Unlimited:
- The initial supply of XTZ was 763 million. Tezos includes a built-in inflation mechanism, primarily to incentivize network participation and security. The protocol can be adjusted via its governance process, including parameters like inflation.
- Supply Deflation:
- Tezos doesn't have a built-in deflationary mechanism. However, its annual inflation rate (around 5% as of last data) is meant to reward those who participate in the network's staking and validation processes.
This summary should give beginners a good introduction to Tezos and its place in the cryptocurrency landscape. As always, given the fast-paced nature of the crypto world, continuous learning and staying updated with recent developments is crucial.
References:
- Tezos Whitepaper. (2014). [https://tezos.com/whitepaper/]
- Tezos. (n.d.). How does Tezos work? [https://tezos.com/learn/]
- Tezos. (n.d.). Developer Portal. [https://developers.tezos.com/]
- Tezos Foundation. (n.d.). About Tezos. [https://tezos.foundation/about]
- Tezos. (n.d.). Why Tezos? [https://tezos.com/why-tezos/]
- Tezos Foundation. (n.d.). Tezos Overview. [https://tezos.foundation/tezos-overview/]