Tezos (XTZ) is a blockchain that tries to govern its system by establishing a true digital commonwealth. There are some features of the Tezos blockchain that makes the project look unique compared to other top public blockchain systems.
In the beginning, XTZ was one of the most hyped ICOs in 2017, collecting over $230 million in total. Let’s take a look at XTZ history, what makes XTZ different, and the market confidence in XTZ cryptocurrency.
The History of XTZ ICO
Arthur Breitman and Kathleen Breitman are the co-founders of Tezos. They have been developing the project for 5 years (since 2014) with a group of developers. The headquarters of the core developers is located in Switzerland. Then, after several years of development, they launched an ICO that ended on July 14, 2017. The ICO, as mentioned earlier, collected over $230 million in total.
We won’t go too deep into it, but there was some drama involved in the history of the XTZ ICO. Basically, at the time, the president of Tezos foundation, Johann Gevers, got into a financial dispute with the Breitmans. Gevers had to leave the company with $400K in compensation. Eventually, the blockchain launched in September 2018 after all the drama that caused delays in development.
What Is Tezos? How Is It Different?
Tezos is a different kind of decentralized blockchain. Just like Ethereum or EOS, you can also build decentralized apps (dApps) with Tezos. However, Tezos is a little different than the other dApps platforms.
In Tezos, the dApps are supported by three groups of people. They are called validators, researchers, and builders. The Tezos blockchain uses a different kind of smart contract language. They call it Michelson. With Michelson, Tezos developers are hoping that one day, all traditional financial businesses will develop dApps on top of Tezos.
Inside the Tezos ecosystem, the XTZ blockchain utilizes ‘general network shell’. This general network shell is compatible with different types of transaction hashes and consensus protocols.
The consensus mechanism in Tezos uses Liquid Proof of Stake which is considered an upgraded version of Delegated Proof of Stake. With Delegated Proof of Stake, you have some ‘representatives’ (usually less than 30) where they will validate all transactions inside the blockchain. These representatives are ‘voted in’ by every wallet holder who wants to stake their tokens.
On the other hand, with Liquid Proof of Stake, validators are decided by roll size. In the Tezos network, bakers who sign and publish blocks through their token commitments can become validators. The Tezos team claims this is a much more efficient and ‘fairer’ system compared to Delegated Proof of Stake. With Tezos’ self-governance system, the hope is that the security of the system will be able to mathematically prove the correctness of the governing transactions.
Regarding its scalability, at the moment, XTZ can produce 40 transactions per second (TPS) on the mainnet.
Tezos (XTZ) Position On The Crypto Market
XTZ is generally doing well compared to many other altcoins. At the time this post was written (September 16th, 2019), XTZ is ranked at the 20th position on CoinMarketCap. Its market capitalization is $663,551,927 USD and its daily trading volume is $9,742,052 USD. You can find XTZ on some decent crypto exchanges like Coinbase Pro, Kraken, Huobi, Bitmax, Gate.io, and our own platform Switchain.
If you are interested to learn more where Tezos price is going, we have our own Tezos price prediction article.
As a unique blockchain network, Tezos has a good future as long as they can keep delivering on their promises. Many experts believe Tezos will be able to stay relevant in the eyes of crypto traders in the next few years. XTZ has plenty of promises and might be able to compete directly with the likes of Ethereum and EOS as the platform matures and gains more adoption.
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