Tezos is an open-source blockchain network that is linked to the digital token “tez” (XTZ). Like Ethereum, it is a decentralized ledger that is powered by smart contracts.

Unlike other cryptocurrencies that rely on mining, tez holders receive a reward for participating in proof-of-stake consensus mechanism, making it more energy-efficient. According to tezos.com, XTZ is a “blockchain designed to evolve”. It has a self-amending chain that is powered by an unusual governance model. All stakeholders, or anyone who owns a tez, can propose and vote on-chain to approve any changes without the need for in-person discussion. These approved changes are implemented automatically, cutting back the time and divisions within the community.

XTZ Ticker Symbol
Source: AS

 Tezos sets itself apart by integrating the decision-making process into the network of users. Because stakeholders can vote on upgrades, the development process and maintenance is democratized and decentralized. Users who participate in the core development process get incentives. These incentives motivate users to continue participating in the voting process, and maintain the decentralized nature of the Tezos network.

History of Tezos

Tezos was designed by Arthur Breitman, a Waymo engineer who worked at Goldman Sachs and Morgan Stanley as a quantitative analyst. A Tezos “Position Paper” and white paper were released in 2014. The Breitmans founded the Dynamic Ledger Solutions to support project development. In 2017, the Tezos Foundation was chartered.

Arthur Breitman
Source: Businessinsider

Tezos had one of the largest initial coin offerings (ICO) of all time. It was able to raise $232 million for its ICO in July 2017. A disagreement between the Breitmans and Tezos Foundation officials delayed the launch of the platform. Because the launch was pushed back indefinitely, investors started a series of lawsuits against the Tezos Foundation and the Breitmans. Eventually it was launched in 2018 and lawsuits were settled.

Tezos (XTZ) Historic Price Chart
Source: Crypto.com

As Tezos moved on from its brief history of scandal, its popularity and prices grew. The price of tez has gained around 170% since the start of 2021. It has also recently made a deal to develop tokenized assets for Incore Bank, Inacta, and Crypto Finance Group—three Swiss firms. Some brands even use it to build their NFT platforms and experiences, like One of, Red Bull Racing, and McLaren Racing. The organization has also proven its staying power by surviving the cryptocurrency bear market. XTZ is one cryptocurrency network to watch.

This is not financial advice.

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