In this article we will discuss about Tezos blockchain’s features, Institutional adoption, How to buy Tezos, Tezos wallets and Price analysis.
This project has been a trend in the blockchain ecosystem for a while now. Let’s talk about Tezos which according to its whitepaper ‘truly aims to be the last cryptocurrency’.
Tezos (XTZ) is described as a self-amending crypto ledger in its white paper. As per the whitepaper:
“We present Tezos, a generic and self-amending crypto-ledger. Tezos can instantiate any blockchain-based ledger.”
Due to Tezos’s self-amendment and its unique architecture, it could amend itself to any technological innovation which might emerge in the future or already exists. Bitcoin, Ethereum, etc all can be represented in Tezos, given proper interface to the network layer is provided.
Let’s learn about the main three features of Tezos-
Formal verification
After events such as DAO hack in Ethereum, the need for writing secure smart contracts was felt. Tezos is highly focused on security, for which it uses a method called formal verification. Formal verification provides a mathematical proof of the correctness of the code. In simple terms, it makes sure that a program does what exactly it is supposed to do. With correctly written formal proofs, it becomes almost impossible to exploit the bug in the system.
Tezos’s all core components such as compiler is formally verified. With the help of its native language Mihcleson, developers could formally verify their smart contracts as well. One other feature of Michelson is that it is a readable machine level language, unlike bytecode in Ethereum.
On-chain Governance
When you have a project without any central authority or C-suite people, it’s hard to make decisions about advancing the underlying protocol as the need emerges. In the Bitcoin and Ethereum ecosystem that is achieved by terms known as ‘Hard fork’ and ‘Soft-fork’.
Forks can many times create scenarios such as Bitcoin and Bitcoin Cash, Bitcoin SV, Ethereum and Ethereum classic, etc. Fork doesn’t only separate the chain, but it also separates the community. Tezos solves this issue by enabling On-chain Governance. In simple terms, it means voting on the proposals proposed by Validators.
During the entire period of an amendment, Participants in the process can vote on choosing which proposal to test. After testing and evaluating the proposals, participants (in this case validators) can vote to implement the proposal in the mainnet or not. You can read about Tezos’s self-amendment and governance process in detail here.
Liquid Proof of Stake
Tezos uses Liquid Proof of Stake as its mechanism to determine who can become a participant to secure the network and earn rewards for doing so. In simple terms, Validators have the same role as miners in Bitcoin. In the Tezos ecosystem, Validators are called Bakers and the process of staking is called Baking, similar to mining in Bitcoin.
Liquid Proof of Stake works greatly to enable a higher degree of decentralization in the network. Let’s learn how the decentralization works in PoS mechanisms in different platforms:
In PoW systems such as Ethereum and Bitcoin, there can be any number of miners. In DPoS (Delegated Proof of Stake) systems such as EOS, Lisk, and Tron that number is fixed i.e. 21 in EOS, 101 in Lisk, etc. Fixing the no. of Validators makes the system sort of centralized. There have been cases where the chain has been rolled back in EOS, due to the existence of a kind of a centralized network. While having fixed no. of Validators in the Validators set certainly provides faster speed but at the cost of reducing the centralization.
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Tezos blockchain tackles this problem by creating a dynamic validator set, which no. of Validators is not fixed in Tezos. Anyone having a minimum amount of 8000 Tez can become a Validator (Baker in Tezos). There are already 433 bakers running the Tezos node, which makes Tezos highly decentralized among PoS blockchains.
Their many other features in Tezos such as developers who propose amendments could also include an invoice within the code, and when the proposal gets activated get paid by automatically. Thus, Tezos enables inflation via funding which is a really unique model enabling developer incentivization.
Enough about Tech, let’s talk about how Tezos has been attracting Institutional attention and what are the developments so far.
Due to Tezos’s unique value proposition, many big players are interested in Tezos. It is being considered as a go-to chain for the tokenization of assets.
Collectively, Elevated Returns, tZero, Securitize, Vertalo, BTG Pactual, etc are tokenizing assets over $2.5 Billion on Tezos.
Coinbase started offering Tezos staking in 2019 and Tezos was the first PoS network that was selected for the same. Tezos staking also provides decent returns for investors. Tezos holders can buy Tezos from exchanges and then they can delegate their tokens to the Bakers. (Or they could start their own staking services after having a minimum of 8000 Tez).
There are many websites such as mytezosbaker, Tezos-nodes where you can check out the statistics regarding baker fees, yield, efficiency, etc.
Tezos has a really large community worldwide. There are multiple community organizations running local meetups groups, doing R&D and contributing to Tezos.
Some interesting facts that we found about Tezos:
- Tezos has a clear decentralizing structure in terms of core development and updates. There’s no CEO or CTO of Tezos and R&D is being done by distributed research groups.
- Tezos has a French origin, as the core development team was based in France during development. Hence, the terminology such as Baking, Baker, and Bakery services are used instead of Staking.
- Tezos was one of the biggest ICO when it happened, it raised $232 Million.
- Tezos also has a really active incentive system (grant system) for developers by Tezos Foundation.
- Tezos has already been through 2 successful amendments, and right now the third amendment it in its final period (promotion period). If the majority votes yay, and Quorum is met, Tezos will amend itself in the next 16 days. (Check it out at Tezos Agora)
To learn more about Tezos, you can read Tezos wiki.
Top 3 Crypto exchanges to buy Tezos(XTZ)
CoinHouse
Country : France
Supported Fiat currency: You can Buy Tezos with EUR
Supported Payment Method : Credit card and wire transfer.
Coinbase
Country : USA
Supported Fiat currency: You can Buy Tezos with USD
Supported Payment Method : Credit card and wire transfer.
Wazirx
Country : India
Supported Fiat currency: You can Buy Tezos with INR
Supported Payment Method : Peer-to-Peer Bank transfer
Top 3 Tezos wallets to store XTZ
AirGap Wallet
Airgap is one of the most secure wallet to store XTZ, It is also considered as an alternative to hardware wallet.
TrustWallet
Trustwallet is one of the most popular and trusted mobile wallet to store XTZ.
TezBox Wallet
TezBox is suite of web,mobile and desktop wallets developed by Tezos Foundation, and it’s their official wallet suite to store tezos.
XTZ – Price Analysis
XTZ is one of the top 10 cryptocurrency with market cap of 2.2B$. XTZ is currently tradng at 3.20$. Tezos is one of the top 5 price gainer of 2020 so far, XTZ’s price recorded over 150% growth since January. Tezos’s price has made a new all time high at 3.58$ last week.
Let’s look at technicals to find out how far Tezos price can reach on short term and long term
Findings
- XTZ made a new all time high at 3.58$, after breaking out from ascending triangle on weekly timeframe.
- XTZ price is currently into price discovery phase on weekly timeframe, price had found resistance at FIB Level 2.618.
- XTZ should hold 2.54$ as key support for bullish continuation on short-term.
Opinion
- XTZ can breakout FIB Level resistance at 3.64$ in next few days.
- Our short term target is 5$ , which should be achieved by March.
- Our long term target is 10$, which should be achieved by August.
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In conclusion, I believe that it will be interesting to see how Tezos evolves into a larger ecosystem and how it faces the challenges posed by other PoS networks.
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