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Tezos is extremely complex, yet on the other hand, uncomplicated. Tezos set out to let people who invested in its cryptocurrency, Tezos (XTZ) have a stake and say in the changes and updates to the Tezos software. That being said, Tezos is a blockchain that can be programmed with smart contracts or additional layers of information. What stands out about Tezos is that many people are earning passive incomes thanks to it!
There is an overabundance of information available online today regarding cryptocurrency and can be overwhelming at times. Websites and other resources throw multiple aspects of many different cryptocurrencies and blockchains, but it never is everything you want to know. Below is everything you need to know about Tezos Blockchain. You will be fully informed and educated moving forward in your path with crypto, starting with basic knowledge and proceeding to the meatier information.
Let’s start off with some basic information. Similar to the currency you are presently familiar with, cryptocurrency is a digital currency that can be used in the same manner, to purchase goods and services. A blockchain is the foundation that supports the cryptocurrency. A blockchain is a digital ledger that keeps record and shares the transactions across the web of the cryptocurrency.
The self-description of Tezos is evolutionary, revolutionary, and everything in-between. But really what is it? Keep reading because everything you need to know is about to be unveiled.
Tezos is extremely complex, yet on the other hand, uncomplicated. Tezos set out to let people who invested in its cryptocurrency, Tezos (XTZ) have a stake and say in the changes and updates to the Tezos software. That being said, Tezos is a blockchain that can be programmed with smart contracts, or additional layers of information. It was founded in 2014 by a husband and wife team, Arthur and Kathleen Breitman. The Breitman’s both had previous work backgrounds in investing, Arthur being an analyst at Goldman Sachs and Morgan Stanley and Kathleen previously working with Accenture, Bridgewater, and the Wall Street Journal. Tezos is available on most major cryptocurrency exchanges. Initially, Arthur’s main objective in the founding of Tezos blockchain was to remedy the widespread problem of protocol development existing among other blockchain platforms. This power couple have been involved in this industry dating back to the early days of Bitcoin and provide the knowledge and know how for a successful platform.
As cryptocurrency and the blockchains that support them continue to evolve and change, the only way for some networks to continue support is by implementing major upgrades. Sometimes this results in what is known as a hard fork. In simpler terms, a hard fork takes a blockchain network and splits it into two parallel running blockchains, both derived from the original. That can make your head spin. Tezos blockchain network has alleviated that issue because it self-amends.
You may have seen the existence of Bitcoin Cash or Bitcoin SV. These are just two of the forks that have diverged due to hard forks in the Bitcoin blockchain. Basically, each fork has to begin building itself again. This seriously dampens the growth potential of a network. You can also see the potential for crippling the stability of any digital asset that depends on that chain.
Tezos blockchain is the solution to this problem. Its self-amending blockchain keeps hard forks at bay by allowing bakers, or those who own sizable portions of Tezos, to recommend changes to the Tezos network. This process can be broken down into 4 phases.
This is a point that needs to be broken into distinct parts in order to outline three main protocols.
In a nutshell, the network protocol links everything together. From the start to the end of every transaction, connecting users to the network and providing finalized transaction information is all accomplished by means of the network protocol.
To make sure that each transaction that takes place on the network is valid, the transaction protocol is needed. It keeps a record of all blockchain activities, including peer to peer interactions.
The word consensus sums it up nicely. This protocol enables the network to be upgraded or modified by the consensus of what the stakeholders vote.
All of these protocols are linked together by means of the network shell. The network shell refers to the blockchain protocol and this enables all of the changes, transactions, and modifications to the network. This allows an upgraded blockchain without any forks or diversions.
You may have the question as to why this topic is even pertinent? Why would the speed of the transactions have any bearing on anything? However, if you think about it simply, if a transaction is going to be usable, it has to be fast. How fast is Tezos? The answer is a very impressive 40 transactions per second. As discussed previously, the hard forks that networks encounter slow down the transaction rate. Another plus for the advanced technology of Tezos self-amending network.
You can earn passive income, money earned without active involvement, two ways with the Tezos network. One is for the more advanced technological investor and the other is an easier, preferred means.
The first thing to know if you want to bake your own is that you need to own 8,000 Tez. Your power is dependent on how much you own, not on the hardware power you have (as needed in mining). Similar to mining, you are rewarded based upon participation in the proof-to-stake mechanism with Tezos tokens.
This is the safer, preferred way to earn passive income. You pay a fee to participate in staking without the risk of losing your coins. The delegation service will take a cut and give you the remaining baking rewards to your account.
If you're interested in earning passive income with Tezos, we definitely recommend that you check out our guide on how to do so.
Both Tezos and Cardano are leading names when discussing the crypto universe. There are many challenges that arise within the blockchain industry and both companies provide a solution through different approaches. Tezos appears to be more advanced by keeping things simpler within the network. One thing to consider are the architectural differences of the two. Tezos is a single layer design encompassing the settlement as well as the computation of transactions. Whereas Cardano is divided into two layers. One layer is the computation part of the transaction and the other is the settlement aspect. As previous stated, transaction speed is something to consider. That being said, the transaction speed of Tezos is approximately three times faster than that of Cardano. At the risk of sounding like a broken record, it is important to once again mention that Tezos is a self-amending network. It incorporates secure smart contract programming language.
Both have major pro components. These two blockchain networks are among the more popular smart contract platforms available in the crypto universe. However, it appears that Tezos has the potential of advancing at a faster rate than Ethereum. Ethereum is now in process of transitioning from proof of work to proof of stake. Tezos is a platform that was designed with staking in mind at the time of conception. That being the case, the environment that Tezos has built with proof of stake is solid and full-bodied, more than what has been established for creating new Ethereum by means of proof of work.
Tezos and Ethereum both support smart contracts. The language used for coding these contracts is different. Ethereum uses Solidity. Solidity is an object-oriented, high language coding program. It has support for user types, libraries, and inheritance qualities. On the other hand, Tezos uses Michelson for its smart contracts. Michelson is specifically designed for Tezos. The most essential element that should be noted regarding this coding language is that it supports formal verification. This is a safeguard for transactions involving substantial financial resources. Large establishments may take note of this aspect in particular when engaging in transactions and business over the blockchain. As a side note, the Michelson language is easy to understand, but the Solidity language is difficult for non-programmers to decipher.
There is no shortage of crypto wallets available. Below are ranked among the top you may want to consider.
This Nanodevice is equipped with up-to-date art chips to store your Tezos cryptocurrency. Compact in size enables you to easily transport your wallet. This wallet is easily connected via USB cable or can be connected through Bluetooth.
This is a tried and true hardware wallet that has stood the test of time. Small enough to carry in your pocket, this wallet supports over 1000 coins and tokens. It is priced comparably to any other ledger devices. A main selling feature of this wallet is that there is no username or password needed to access your account. In order to view your assets all that is needed is the device itself. No one can access your account by other means.
Guarda Wallet aims to provide its users with easy crypto storage and ultimate protection and security. You can easily access your wallet through your mobile or desktop device. A great benefit of this wallet is the 24/7 technical support that is available to users.
People like things that are easy to use. That is exactly why this Exodus wallet is preferred by many. The multi-coin support allows support of 40 different Cryptos all at once. There is a built-in exchange that allows you to easily swap your assets. If any problems arise, there is a 24/7 live chat support available to help the user with any issues. And if you are new to all of this crypto stuff, the dashboard on the Exodus interface is simple to understand.
Now that you are familiar with the advantages and the ins and outs of Tezos, where should you go to purchase? Here is a list of where to look.
Tezos is a blockchain that has been designed for continuous evolution. Its ever-advancing technology addresses and overcomes barricades faced by blockchain platforms. Tezos stands out as advancing at a faster rate by streamlining its processes. Tezos has one of the largest followings today in the market. At the rate Tezos continues to grow, you can expect to see it listed among the top cryptocurrencies for many years to come.
