What is Tezos?
Tezos is a decentralized, open-source blockchain network capable of carrying out peer-to-peer transfers and acting as a smart contract implementation framework. For the Tezos blockchain, the Tez with the sign XTZ is the native cryptocurrency.
There are over 400 block validation nodes (bakers) on the Tezos network as of January 2021.
However, the overwhelming majority of transactions actually take place on Tezos are primarily to establish governance and are not for more substantive activities, such as the execution of smart contracts, while the network has the potential to accommodate much more transactions.
Using a liquid proof-of-stake model, the Tezos network reaches consensus. Tezos provides a model of on-chain governance that requires the protocol to modify itself when the group gets a positive vote for update proposals.
This function allows Tezos to prevent hard forks that other blockchains have to cope with.
How does Tezos work?
Tezos’ primary protocol uses liquid proof of stake (LPoS) and embraces Turing in a domain-specific language named Michelson for absolute smart contracts.
In the LPoS model of Tezos, network nodes that validate blocks and connect them to the blockchain, known as bakers, are chosen to conduct certain acts proportionally to their share of 8,000 XTZ rolls they placed up for stake, and after successfully validating a block and attaching it to the blockchain, a baker earns staking incentives in the form of freshly minted XTZ.
The current annual rate of inflation is 3.6%. As of January 2021, almost 80% of all XTZs in circulation were either specifically staked by bakers or assigned to staking bakers.
What is the History of Tezos?
One of the project’s creators, Arthur Breitman, published a paper dubbed the “Position Paper” and the Tezos whitepaper in August and September 2014, respectively.
Breitman wrote the two articles under the alias “LM Goodman” in response to the author of a controversial story in Newsweek magazine claiming to have located Bitcoin’s pseudonymous developer, Satoshi Nakamoto.
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The Tezos Project, a non-profit founded in Switzerland, earned $232 million in a fundraiser in 2017 and became one of the major ICOs of the 2017 cryptocurrency boom.
In particular, billionaire businessman Tim Draper was a leader in funding the ICO of Tezos. Foundation President Johann Gevers subsequently confronted a management conflict about the utilization of raised funds. On February 22, 2018, Johann Gevers resigned.
In August 2020, the owners of Tezos and the Tezos Foundation settled their litigation claiming illegal purchases of $25 million in security paid by the Tezos Foundation.
How do I hold Tezos (XTZ)?
Keeping Tezos tokens helps one to communicate with the blockchain of the Tezos. There are several wallets in which tokens can be packed and used. At least one independent external protection audit has been carried out on the wallets mentioned below.
Often remember: you can not manage your tokens if you do not control your private keys. When entering private key details anywhere, any consumer should make sure to practice special care and take all available safety measures.
The tokens managed by the corresponding public key hash will be accessible to any party or software, such as a wallet, that gains knowledge of private key details.
Some wallets include:
