What is Tezos and How Does It Work? Who Created XTZ?

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Discover Tezos

Tezos is a cryptocurrency designed to empower XTZ token holders with voting rights on future network rule changes. Once consensus is reached, the software automatically updates rules across all nodes, placing governance directly in users' hands. This innovative approach eliminates hard forks while boosting user satisfaction.

Tezos' introduction marked a pivotal moment, dividing cryptocurrencies into two categories: those with on-chain governance (like Tezos) and those relying on off-chain governance. Its 2017 funding success—raising $232 million—highlighted public interest, leading to its official 2018 launch.

How Does Tezos Work?

Tezos operates uniquely through its bifurcated blockchain structure:

Tezos employs Liquid Proof-of-Stake (LPoS), a modified PoS mechanism. Users "bake" (stake) XTZ to become Bakers (validators), requiring 8,000 XTZ per node. Bakers vote on developer-proposed upgrades in a 4-phase, 92-day process.

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Who Founded Tezos? (Tezos History)

Conceived in 2014 by Arthur and Kathleen Breitman, Tezos faced early management hurdles when its ICO funds were withheld by the Tezos Foundation. After resolving disputes, the project launched successfully from Switzerland.

What Makes Tezos Unique?

  1. Self-Amending Blockchain: Automatic upgrades via stakeholder voting.
  2. Decentralized Governance: Eliminates developer dominance in decision-making.
  3. LPoS Efficiency: Flexible staking/delegation enhances participation.

👉 Explore Tezos staking rewards

What Gives Tezos Value?

XTZ Supply Metrics

Technical Highlights

  1. Four-Phase Voting:

    • Proposal → Research Vote → Testing → Promotion Vote (80% approval required).
  2. Baker Incentives: Submit bills with proposals for monetary rewards upon implementation.

How Is Tezos Secured?

How to Use Tezos

Choosing a Tezos Wallet

| Type | Pros | Cons | Best For |
|---------------|-------------------------------|-------------------------------|-----------------------|
| Hardware | Ultra-secure, offline storage | Expensive, complex setup | Large XTZ holdings |
| Software | Free, user-friendly | Less secure than hardware | Small amounts/newbies|
| Web | Accessible, no downloads | Custodial risk | Traders |

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Tezos Staking Explained

Delegate XTZ to Bakers without locking tokens. Rewards are distributed every 3 days post a 35-day initial waiting period.

Conclusion

Tezos combines robust governance, institutional adoption, and dApp potential, making it a standout in crypto. Its resilience post-ICO challenges underscores its long-term viability.

Tezos FAQ

Is Tezos an Ethereum competitor?

Yes—both support smart contracts, but Tezos’ on-chain governance offers distinct advantages.

Is XTZ delegation safe?

Absolutely. Bakers can only use delegated XTZ for staking, not transfers.

When do Bakers earn rewards?

After a 35-day initial cycle, rewards accrue every 3 days.

How to Buy/Sell Tezos?

Purchase XTZ on exchanges like Kriptomat via credit/debit cards or bank transfers.

What drives XTZ’s price?

Demand, network usage, and broader crypto market trends.

Current XTZ Price: [Live tracking available on exchanges]

Start your Tezos journey today—stake, trade, or build on this revolutionary blockchain!