What is Tezos (XTZ)?

Tezos is a blockchain platform that governs itself by establishing a true digital commonwealth.

It facilitates formal verification, a technique that mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighted smart contracts.

Tezos has been designed to allow for efficient and secure protocol upgrades in response to emerging technological developments: it will be possible to upgrade the protocol without disrupting its functions while preserving stakeholder consensus.

Therefore After you Buy Tezos, the protocol will self-watch your wallet and auto-upgrade every time it needs to, meaning that the more you use Tezos, the more secure your cryptocurrency becomes.

Tezos is a new and independent blockchain designed to be the backbone of a digital commonwealth for the Internet.

The blockchain community has critically acclaimed Tezos for being the first self-governing blockchain. People who Buy Tezos benefit from its innovative governance and safety features.

Purpose of Tezos (XTZ)

Its purpose is to provide accurate digital commonwealth or self-governing intelligent contracts enforced by the rules defined by their code.

This solves the so-called “Tragedy of the Commons” problem, whereby if everyone manages resources in their self-interest, then no one effectively manages them.

The Tezos blockchain acts as a self-regulating, self-supporting, and self-repairing network that provides a decentralized venue to govern transactions and agreements between parties efficiently.

Rules are enforced by smart contracts, digital entities that live on the blockchain, and automatically execute tasks when certain conditions are met.

Tezos is designed to allow for efficient agreement and transaction processing where the protocols for reaching consensus between stakeholders are formally specified in the code itself.

This allows the protocols to be tested, improved, and enforced with mathematical certainty.

Tezos is designed to be modular so that new types of blockchain-based applications can be developed on top while preserving all of Tezos’ built-in features. This modularity allows the technology to grow organically and upgrade itself over time.

Sharding protects the original blockchain architecture. This algorithm splits the network into several independent components to allow each component to run its copy of the entire blockchain.

Each component then independently verifies transactions, validates intelligent contracts, and performs administrative tasks while remaining completely autonomous.

As Tezos is a fully open-source platform, anyone can access and contribute new features, consensus algorithms, and code changes. Most notably, Tezos’ governance system allows the network to self-organize by “baking” new proposals into the blockchain.

Tezos will be the first blockchain protocol capable of withstanding forking and self-evolving. Funds and investor tokens can be frozen, disbursed, or traded across all blockchains by simply voting to change the code formally.

Each node on the network will be able to verify that these commands are valid, allowing the network to self-organize. The protocol comprises two primary components: a blockchain and a decentralized governance system.

The Tezos blockchain acts as a powerful engine that powers intelligent contracts, formally verifying their rules to guarantee their correctness.

This fundamentally changes the nature of smart contracts by making them self-governing, meaning that they can automatically execute their functions without human intervention.

The Tezos protocol also allows developers to build applications on top of it. Baked into the system is a new category of decentralized applications known as “Tezos objects” or “This.”

This is similar to intelligent contracts but consists of data rather than code. Any developer can create a Tzo, a digital asset that facilitates contractual relations or verifiable computations on the blockchain.

Tezos intends to evolve and adapt to user needs and maintain the integrity of its consensus protocol by allowing stakeholders to govern the evolution of their blockchain in a formalized manner.

The core of this governance model is a continuous approval process that allows stakeholders to ratify or veto any upgrade proposed by developers.

How Tezos is Running

Developers can propose new protocol upgrades, assessed by “bakers” – the computer network that runs the core software.

If a simple majority of bakers accept an upgrade, it will automatically be implemented and enforced on all of the network’s validator nodes.

The purpose of this system is to provide a way for stakeholders to exercise influence over their blockchain without controlling it.

Stakeholders who use Tezos Tokens participate in the governance process by baking their tokens.

Tezos’ scalable, self-healing mechanism is based on “baking,” a process of baking new changes into the blockchain at regular intervals. This can occur automatically or manually.

The community can manually bake new changes, but in most cases, this will be done through designated tokens – known as “bakers” – which vote on the proposed upgrades.

Tezos’ founders, Arthur and Kathleen Breitman, were developing their digital currency project while considering different blockchain designs. In January 2014, they began developing a new blockchain protocol that would focus on facilitating formal verification.

They published the project’s white paper in October 2014 and received $484,000 through a crowdfunding campaign.

The project was publicly released as an open-source software network in July 2016. In 2017, the Tezos Foundation was founded to oversee its development and promotion.

The Tezos currency ticker symbol is XTZ, while the Tezos Foundation controls the XTZ ticker symbol. The Breitmans appointed the Tezos Foundation to oversee the network’s operations and promote its development.

Tezos’ token sale in July 2017 raised $232 million, making it the most successful ICO in history.

In November 2017, Tezos was designated by the United States Securities and Exchange Commission as a security under federal securities laws and subject to regulation by state and federal securities regulators.

Takeaway

Tezos is one of the most popular ICOs to date. Tezos is a fully self-governing blockchain with a formalized and secure way for stakeholders to veto proposals. It will be the first ever blockchain protocol with this feature.

The blockchain community has critically acclaimed Tezos for being the first self-governing blockchain.