Do you know Tezos?
Every day more and more people feel the desire to introduce their savings in the world of cryptocurrencies, mostly as a way to multiply their income by taking advantage of the thrust and dynamics of digital currencies in a context where the deception implemented by fiat money collapses before our eyes. However, many come to this cryptographic universe without knowing the existing projects, a mistake that usually has a negative economic impact, so it is necessary to know those platforms or tokens that attract our attention before making a decision.
This time we will talk about Tezos (XTZ), a blockchain that claims to be the fastest in the world of cryptocurrencies because it was designed to offer its users an infrastructure specially created for the implementation of smart contracts and DApps with very low fees. On the other hand, Tezos works on a platform capable of evolving progressively, so it is not necessary to implement a hard fork that risks the work of this network. Obviously, Tezos is another project focused on competing with the all-powerful Ethereum and its obvious scalability problems.
To stay with the supremacy in the Smart Contracts sector, Tezos relies on its modular infrastructure, which is easily upgradable and also relies on the use of the Liquid Proof of Stake (LPoS) which represents its main algorithm as its calling card for great performance. Likewise, its smart contracts can be programmed to interact with any external platform, a situation that offers an interesting versatility for the benefit of its users.
Tezos began its path in the cryptosphere in 2014, exposing to the world its Position Paper, a document whose real title is "Tezos: a self-modifying cryptographic ledger", where its main developer Arthur Breitman (known as LM Goodman) specified the goals of his project, basically the following four:
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Solve the problem produced by hard forks by hindering blockchain updates.
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Reduce the cost and centralization characteristic of systems using Bitcoin (BTC) Proof-of-Work (PoW) algorithms.
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Bitcoin's limited transaction language (Bitcoin Script), which forces smart contracts to use other platforms.
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Security issues typical of the initial processes of cryptocurrency projects.
Once the whaitepaper is created, which formally starts Tezos in 2014, the above objectives will be achieved through the following actions:
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Creation of a network protocol capable of generating, verifying and validating blocks in addition to transmitting transactions.
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Development of a transaction-specific protocol, which has the ability to validate transactions.
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Design of a consensus protocol capable of integrating other platforms.
To make these objectives a reality, Tezos set up the non-profit foundation bearing its name in Switzerland in 2017, in this way this institution would be in charge of attracting the necessary funds for the implementation of the project. The Tezos Foundation structured an ICO to raise $232 million, which was later used for the creation of genesis block in 2018.
Tezos is known for its Seed Protocol, which constitutes a set of rules that govern the execution of this project from the beginning of the genesis block until today. Seed Protocol imposes the procedures that Tezos must apply for the creation of coins, consensus protocol, performance of its validators, the operation of its smart contracts in addition to its governance.
The Tezos cryptocurrency is a token used for transactions within the system, its denomination is XTZ, which has a limited supply of 10 billion units. At the moment of creation of the genesis block, 700 million XTZ were released to the owners of 32 thousand Tezos wallets who invested in the process of creation of the project when it was launched as an ICO. Likewise, the rest of XTZ are released to the Tezos ecosystem by means of adjustment to the issuance taking place within the protocol. It is necessary to note that the system is designed to burn the coins that are not moved within a year.
It is also necessary to say that the Liquid Proof of Stake (LPoS) altgorithm is a protocol designed to allow those responsible for validating transactions to do the work of extracting the blocks, and then use a series of signatures to manage their validity randomly.
In short, the validators generate a block, but only the one that manages to integrate a series of signatures will be eligible to be part of the blockchain, while the rest of them are rejected until the process is restarted once again. This process establishes a reward of XTZ, also for those who do the signing functions are rewarded with a small amount.
It is important to remind the community that the advertisement you have just read does not represent under any circumstances any recommendation to invest in Tezos, it is only a way to provide information for educational or informative purposes for general knowledge.
