Last year, we welcomed a whole host of new cryptocurrencies to the Wirex app. One of them was the native token of the Tezos blockchain, the tez (XTZ).
Let’s see what it’s all about.
Tezos serves as a platform for deploying smart contracts, which can be used to create new digital assets or dapps. Its programmable nature makes it comparable to Ethereum, however it claims to offer a more advanced infrastructure that is designed to evolve and improve over time without there ever being the danger of a hard fork.
XTZ fuels the Tezos platform and allows users to vote on potential changes to the software. Once decided and passed, the software is updated immediately.
In the Tezos network, the act of validating transactions is known as “baking” (other networks call this “mining” or “validation” depending on the type of consensus mechanism they operate). The process involves a “baker” staking XTZ for a chance to be selected to create a transaction block. Once created, the block is then sent to 32 other bakers to contest its validity. If the majority agree, it’s added to the Tezos blockchain.
Bakers are incentivised to take part in the process by earning XTZ rewards, which are paid out according to the amount they bake.
Tezos was co-founded by husband-and-wife duo Arthur and Kathleen Breitman and launched in 2014. The Switzerland-based Tezos Foundation was created in 2017 to support the project and successfully raised $232 million in BTC and ETH - one of the biggest ICOs at the time.
Interestingly, both the Tezos position paper and whitepaper were originally published under the pseudonym L.M Goodman. The pseudonym was apparently a snide reference to the Newsweek journalist, Leah McGrath Goodman, who famously misidentified the person behind Bitcoin founder, Satoshi Nakamoto.