💡What is Tezos (XTZ)?

Tezos is a fully decentralized blockchain. The network is open-source and supports peer-to-peer transactions and the deployment of smart contracts.

For securing the blockchain and validating transactions the Tezos uses a liquid proof-of-stake model (LPoS). This model is more efficient than the hardware and electricity intense mining of e.g. Bitcoin.

Participants in the proof-of-stake model are called staker, in the Tezos universe called bakers (an analogy to baking (creating new coins)/staking). Bakers get rewarded to validate blocks by participating in the proof-of-stake mechanism.

The units in the Tezos protocol are called Tez. Tez therefore is the unit of the Tezos protocol, the Tezos coin.

🚀Why is Tezos special?

The main advantage of the Tezos protocol is it’s built in on-chain governance model. This allows the protocol to amend itself (or upgrade) based on community proposals. The community can vote on these proposals. There is no hardfork of the blockchain needed to upgrade the protocol.

Secondly Tezos supports formal verification to verify the functionality of smart contracts. This makes it possible to create more secure smart contracts and decentralized applications (DApp). Common use cases for this feature are  for example decentralized exchanges (DEX) or decentralized finance applications (DeFi).