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Tezos and everything you need to know |What is Tezos

Tezos and everything you need to know |What is Tezos? | XTZ Tezos

Tezos is designed to provide the safety and code correctness required for assets and other high-value use cases. In this post, we will introduce and review one of the most anticipated cryptocurrencies of these days, Tezos. Also in this tutorial, we will take a brief look at the high-margin history of Tezos, Tezos wallet, Tezos mining and learn how to operate its blockchain.

 

What is Tezos?

 Tezos introduces itself as the first self-amendment cryptocurrency exchange platform. The Tezos smart contracts platform is similar to Ethereum and allows for decentralized applications, but uses a stake-based consensus algorithm. Participants in Tezos Blockchain, or shareholders, can vote on the changes they want to make a collective agreement on the network about the proposals.

On its site, Tezos has used the following essential features to describe its platform:

Self-Amendment: 

The self-amendment feature allows Tezos to apply his updates without having to fork or break the chains into two different blocks. This is important because it can prevent multiple segments of society, changing shareholder motivations, and disrupting the network over time. Due to the self-amendment feature of Tezos, the cost of updating protocols and implementing innovations in the future is reduced.

On-Chain Governance:

 All stakeholders can be involved in protocol management. The election cycle for shareholders is a well-organized process to come up with collective bargaining proposals. By combining the intra-chain management mechanism with the self-amendment protocol, it will also be possible to modify the voting process in the future by discovering better management mechanisms.

Decentralized Innovation: 

Proposed modifications that are accepted may include payments to groups or individuals seeking to improve the protocol. This kind of mechanism enables decentralized financing of network maintenance. Creating an ecosystem of active and diverse developers with an economic incentive to participate in the protocol will improve the development and adoption process of Tezos.

Smart Contracts & Formal Verification:

 The Tezos platform enables users to create smart contracts and decentralized applications that cannot be manipulated or disrupted by third parties. Also, Tezos facilitates the formal review process of smart contracts, a technique for improving their security. This technique will prevent costly and controversial bugs if properly used in the future.

Proof-of-Stake: 

Contributors (nodes) to peer-to-peer decentralized networks provide the computational resources needed to survive the network. Unlike other stake-based digital currencies, each stakeholder can participate in the consensus process and receive awards for contributing to the security and sustainability of the network. The barriers to entry into the Tezos mechanism are less than others and its costs are low compared to others.

Delegation:

 A secure deposit is required to participate in the proof-of-stake process. As the proof of stake rests on the integrity of the majority of network members, the security of Tezos is realized through its incentive protocol by punishing fraudsters and rewarding honest people on the network. Users who do not want to participate directly in the consensus protocol can choose to delegate.

 

The controversial history of Tezos

Tezos is the brainchild of Arthur Breitman, a computer expert who August; alias L.M. Goodman published White Paper of Tezos under the name L.M. Goodman in august 2014. Later that year, Breitman set up a company called Dynamic Ledger Solutions in Delaware and took over as CEO.

Arthur and his wife, Kathleen, a former employee of the Bridgewater Institute and R3, decided to hold the initial coin offering (ICO) after raising funds by traditional means to raise funds for the construction of the Tezos platform.

The focus of the Tezos platform is on delivering a decentralized democracy that allows its shareholders to handle the network and run it on-chain, using the of proof-of-stake consensus.

In July, Tezos ICO raised $ 232 million and Breitman founded the Tezos Foundation in Zug, Switzerland. Breitman asked Johann Gevers to head the foundation. On the other hand, the Tezos Foundation was to merge the Ledger Solutions Dynamic Company with the intellectual property of the Tezos source code.

But things didn’t go as planned, and there were differences between Breitman and Gevers.

The chairman and board of directors of the Tezos Foundation held control of the assets acquired by the ICO, and disagreements arose over disputes over those who Gevers had run for the Tezos office.

The plan was that the initial supply tokens should be delivered to the participants and that the Tesos blockchain would be launched as free software.

Besides, Breitman attempted to overturn Gevers, which eventually led not only to public outrage between Breitman and Gevers but also to the Tezos Society and the Arthur Company (DLS).

DLS, owned by Breitman, was soon put under regulatory pressure by the US Securities and Exchange Commission that Tezos tokens should be considered securities. It was also suggested that the funds be returned to investors but ultimately the SEC did not agree.

Eventually, Gevers and the board of the Tezos Foundation voluntarily withdrew in February 2018 and replaced with two activists supported by Breitman, Michelmany and Rein Jefferson.

Slight updates were made to Tezos over the next few months, which angered their community.

Then in June 2018, the Tesos Foundation announced that coin launchers should complete KYC / AML policies. Of course, this demand received a negative response from the Tezos community.

 

How does Tezos work?

Tezos is a non-proprietary, distributed and self-amendment platform that uses smart contracts to provide a unique on-chain governance mechanism and make some improvements to platforms such as Ethereum. The main focus of the platform is on a multi-structure design with partial on-chain updates to the protocol that uses a modified proof-of-stake consensus model in which shareholders can change the governance structure of the protocol.

Network Shell

The unique sovereignty and self-amendment capacities of Tezos are possible through its network shell. To understand how the network shell works, we should divide the blockchain protocol into three main and distinct protocols:

  1. Network Protocol: 

The network protocol often referred to as the “speech” protocol, specifies how transactions are transmitted across the network between nodes (network participants). The protocol also includes how to download a blockchain, find or discover other nodes on the network, and how to announce blocks found on the network. Generally speaking, the network protocol witnesses the most innovation and development activities.

  1. Transaction Protocol: 

The transaction protocol is defined by the scripting language of a cryptocurrency, and for Bitcoin, it is the output model of unused transactions or UTXO. To illustrate this sub-protocol in Bitcoin, it includes everything from creating new bitcoins during the extraction process to using digital signatures to confirm transactions. Modifications to this sub-protocol are commonly referred to as Soft Forks, and often no further chains continue after their implementation.

  1. Consensus Protocol: 

This sub-protocol specifies how to reach consensus (a collective agreement) between all nodes of the Blockchain Network. Bitcoin uses Proof of Work as its model of consensus. This protocol is critical to maintaining the integrity of the blockchain, as it specifies how to prevent events such as double spending and unchangeability of the blockchain. Changes to the consensus protocol are usually referred to as a hard fork, and often a subsequent chain is formed. These types of hard forks cause segregation in cryptocurrency communities (such as bitcoin and bitcoin, cash), and Tezos intends to solve this problem with its design.

The Tezos Network shell combines consensus and transaction protocols into what is called the “Blockchain Protocol”. The Blockchain Protocol is a continuous set of agreed-upon improvements to the general status of the blockchain, in which blocks are the main drivers of the chain status change. Thus, the Blockchain Protocol can examine itself and allow the blocks to operate on the protocol. As a result, shareholders can directly influence system updates with their votes.

The network shell acts as the interface between the network protocol and the Blockchain Protocol. The task of the network shell is to maintain and deliver the best-known chains to clients. Tezos is written in OCaml programming language and the network shell is capable of identifying blocks, transactions, and protocols.

The OCaml language modules can be used to modify the current protocol directly. The network shell also prevents DDoS attacks on the network. The most important feature of the Tezos platform is the ability to implement protocols with their modifiable features.

 

The Sovereignty of Tezos

The sovereignty of Tezos depends entirely on its shareholders (owners of cryptocurrency). All shareholders can participate in the sovereignty of the protocol and vote on updates submitted by developers.

Although the basic voting mechanism is predefined, the governance process is such that it can. Many conditions can change the protocol, most notably the shareholder vote.

However, more sophisticated mechanisms can be applied through the governance model. For example, proving the legitimacy of the new changes compared to the widespread changes that have occurred to most members of the network that represent the general principles of the platform and has been established by shareholders.

 

Liquid Proof of Stake | Tezos Mining or Baking

The implementation of proof-of-stake is an optimal combination of different concepts such as Slasher, Chain of Activity and Proof of Burn. Tezos uses a process called baking instead of mining. The creation of blocks in this mechanism is done by shareholders so that instead of solving a complex mathematical puzzle, they can create a new block when Tezos is randomly selected to create the block.

But there is no requirement for everyone to participate in the process. Users who do not intend to vote can provide their voting power by selecting a representative for their coins. Bakers (the Bakers are the ones doing the baking) are notified a few weeks before the start of voting to create Bond tokens, which are a dynamic deposit based on the number of blocks a representative has been chosen to create.

Bakers receive token rewards if they are honest and if they are fraudulent (double-spending, pushing the chain divisions in different branches) their tokens will be seized as punishment.

At least 8GB of RAM and a stable internet connection and a certain amount of Tezos token are required to start baking.

 

Tezos Price History

Currently, the price for each unit of Tezos is $ 1.2. This cryptocurrency, which was added to some currency exchanges in the second half of 2017, experienced strong growth in December of that year along with Bitcoin, reaching more than $ 10 a coin. The other significant growth in the cryptocurrency, which has seen a surge in trading volume, began in early 2019, causing triple the price of Tezos.

The total number of coins in the network is about 792 million, with 660 million units currently in circulation.

 

Tezos wallet

You have to use a special wallet for keeping Tezos or use wallets that support Tezos. To this end, the official site of Tezos has introduced three special wallets for Tezos. It is also possible to store Tezos on Trevor and Ledger hardware wallets.

 

Galleon wallet

If you want to keep Tezos on your desktop, you can use the Galleon Wallet for Windows, Linux, and Mac OS platforms.

 

Tezbox wallet

This wallet also provides storage for Tezos on Android, in addition to being maintained on Windows and Mac OS. It is worth noting that the IOS version of this wallet is currently under development.

 

Buying Tezos

Although Tezos is currently ranked 17th in the market of the most valuable digital currencies, major currency exchanges such as Binance have not yet added it to their list. So consider different aspects of the Tezos market before stepping in. The list of currency exchanges that support the Tezos cryptocurrency can be found at the CoinMarketCap website.

If you are planning to sell or buy any cryptocurrency or exchange your crypto asset with credit cards, and don’t know where to start, you can contact ExPay 24 and we will guide you through your decision.

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