Tezos

Tezos (XTZ), also known as Tez, is the native cryptocurrency of the Tezos blockchain, an open-source platform designed to address critical barriers facing blockchain adoption for assets and applications. It is a decentralized network that supports smart contracts and offers a mechanism for formal verification, which helps secure smart contracts and avoid buggy code. Tezos is unique in its self-amending cryptographic ledger, allowing the blockchain to implement upgrades without hard forks. The XTZ token is used to interact with decentralized applications (dApps), pay transaction fees, secure the network through staking, and serve as a basic accounting unit on the platform.

• Total Supply

• : Tezos has an unlimited token supply, which is inflationary, with new tokens primarily emitted through staking.

• Initial Allocation

• : Approximately 80% of the tokens were distributed to Initial Coin Offering (ICO) participants, with the remaining 20% going to early backers and the Dynamic Ledger Solutions business entity representing Tezos.

• Purpose

• : XTZ tokens are used for governance, allowing holders to vote on proposals, and for staking, where they can earn rewards. They are also used to pay for gas fees associated with transactions or intelligent contract execution.

As of today 22 November 2024, the price of Tezos is ₹95.20 INR, with a 24-hour trading volume of 116738326.35 USD. The market capitalization for Tezos is 1107907371.35USD. The circulating supply is 1014098222.96 Tezos, with the total supply also being 1034597183.8 Tezos.

• Self-Amendment

• : Tezos can upgrade itself without the need for hard forks, which can be divisive in the crypto community.

• On-Chain Governance

• : Holders of XTZ can participate in the governance of the network, proposing and voting on upgrades.

• Proof-of-Stake Consensus

• : Tezos uses an eco-friendly proof-of-stake mechanism, which is less energy-intensive than proof-of-work systems.

• Formal Verification

• : The platform supports formal verification of smart contracts, which can reduce the risk of buggy or malicious code.

• Staking Rewards

• : Users can earn rewards through staking, with an annual percentage yield (APY) of up to 6%.

• Unlimited Supply

• : The lack of a maximum token supply can lead to inflationary pressures on the value of XTZ.

• Competition

• : Tezos faces stiff competition from other innovative contract platforms, which could impact its adoption and growth.

• Complexity

• : The self-amending process and on-chain governance can be complex for users to understand and participate effectively.

• Market Volatility

• : As with all cryptocurrencies, XTZ is subject to high market volatility, leading to significant price fluctuations.

• Regulatory Risks

• : The evolving regulatory landscape for cryptocurrencies could threaten the Tezos network and XTZ token.

• Innovative Governance Model

• : Tezos' on-chain governance allows for a democratic and orderly upgrade process, which could lead to sustained innovation and longevity.

• Eco-Friendly

• : The proof-of-stake consensus mechanism makes Tezos an environmentally friendly choice compared to proof-of-work cryptocurrencies.

• Strong Community

• : Tezos has a global community of validators, researchers, and builders, indicating a robust support system for the network.

• Potential for Appreciation

• : The unlimited supply of XTZ is balanced by staking mechanisms that could drive demand and potentially increase the token's value.

• Growing Ecosystem

• : Tezos has a growing ecosystem of dApps, DeFi platforms, and NFT marketplaces, which could increase the utility and demand for XTZ.

• Self-Amendment

• : Tezos' ability to upgrade without hard forks is a unique selling point that ensures its protocol can evolve smoothly over time.

• Formal Verification

• : The emphasis on security through formal verification of smart contracts sets Tezos apart from many other platforms.

• On-Chain Governance

• : The inclusive governance model where all stakeholders can participate in decision-making is a distinctive feature of Tezos.

Tezos aims to solve the problem of hard forks and governance disputes in blockchain networks by introducing a self-amending ledger and on-chain governance, ensuring that the network can evolve with consensus and without splitting.

Arthur and Kathleen Breitman founded Tezos. Arthur Breitman is a former analyst at Morgan Stanley with experience in mathematical logic, which he applied to developing Tezos' self-amending blockchain protocol.

The Tezos ICO took place in July 2017, raising $232 million. The initial token supply distribution allocated 79.50% to ICO participants, with the price of XTZ during the ICO not explicitly stated in the provided sources.

• Inflationary Token Supply

• : The unlimited supply of XTZ could lead to inflation, which may dilute the token's value over time.

• Competitive Landscape

• : The crowded market of intelligent contract platforms means Tezos must continually innovate to maintain relevance.

• Regulatory Uncertainty

• : Changes in cryptocurrency regulations could adversely affect the Tezos network and XTZ token.

• Technical Complexity

• : The complexity of participating in governance and understanding protocol upgrades could deter new users.

• Dependence on Network Growth

• : The success of Tezos is tied to the growth of its network and dApp ecosystem, which is not guaranteed.

The Tezos whitepaper outlines a new decentralized ledger that facilitates formal verification. This technique mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighted smart contracts. It introduces a mechanism for a blockchain to self-amend, allowing for upgrades to be proposed, adopted, and deployed without the need for a hard fork. This is achieved through on-chain governance, where stakeholders can vote on protocol amendments, including voting procedure changes.

The whitepaper also describes the Tezos proof-of-stake consensus algorithm, designed to be more energy-efficient than proof-of-work systems. It details the role of bakers (validators) in the network, who must provide a security deposit and are rewarded for signing and publishing blocks. Dishonest bakers lose their deposits. Tezos' tokenomics are designed to incentivize participation in the network's governance and to ensure that stakeholders who actively participate are rewarded.

The document further explains the formal language used for specifying Tezos intelligent contracts, which facilitates formal proofs of contract properties for better security. The whitepaper emphasizes the importance of community consensus in evolving the Tezos protocol, aiming to avoid the political and strategic issues associated with hard forks in other blockchains.

In summary, the Tezos whitepaper presents a vision for a self-amending blockchain that can adapt to new technological developments and changes in governance preferences while maintaining a secure and participatory digital commonwealth.