Hi everyone, sorry from the post-less week but I was studying for an important university exam. The KYC series continues, no worry :)
If you are interested to the previous posts of this series, check it out here:
What is it?
Tezos is a decentralized platform used for creating dApps. This cryptocurrency is very similar to Ethereum, because both Tezos and Ethereum blockchains support dApps development using Smart contracts. Tezos, however, has some unique features that set it apart from Ethereum. Most notable is the on-chain governance of the network, which allows holders of XTZ, Tezos native currency, to vote on future decisions made by the network. The voting feature was designed to avoid community division, which usually results in hard forking or depreciation of the cryptocurrency. The self-regulating nature of the Tezos protocol translates into a blockchain that is easier to update, which at the same time is always open to adding new features.
How does it work?
Tezos, like Ethereum, is a very useful project. Its two main purposes, as we have said, are decentralized apps and smart contracts:
- DApps are normal programs that can be used on a phone, tablet or computer. Just like normal apps, they can be websites or games or services of various kinds. The advantage of keeping them on a peer-to-peer architecture is that they can be made much safer, especially when economic transactions are involved. It also makes them unassailable from the outside and even by the laws, as the use of a blockchain can be condemned but it is virtually impossible to make it stop working
- Smart contracts are contracts that can regulate themselves, so that neither party can cheat the other. Through the algorithms applied to a blockchain it is possible to eliminate much of the work of civil lawyers and notaries , replacing them with a faster and cheaper system.
Tezos verification protocol is the Proof-of-Stake, abbreviated PoS, the same that is used by Cardano. This is how new blocks to be added to the blockchain are encrypted and approved. Unlike the Proof-of-Work (PoW) that is used by Bitcoin, it is decidedly more advanced. First of all, it does not require complex mining machinery, and above all it does not require a huge expenditure of electricity. This makes the network sustainable and scalable, which becomes neither a problem for the environment nor a race for those who can assemble more expensive and giant equipment to mine tokens. In any case, Tezos' Proof-of-Stake is slightly different than that of Cardano and other projects like EOS. These last two projects, in fact, have strict rules: the block is formed and must be mined by a person chosen on the basis of some immutable criteria. Tezos instead uses a “liquid” model, where each person can choose rules on the verification of their transactions and possibly delegate other people to make decisions on these rules on their own.
Where to store it?
The best hot wallets for XTZ are AirGap, Atomex, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice.
Pros&Cons
*DISCLAIMER* These lists are subjective, it depends from person to person
Pros
- Great devs team
- Completely decentralized
- More and more adoption
- Scalable blockchain
Cons
- Lack of commercial support
- Low participation in DeFi projects
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