When the crypto market was new, it was easy to decide which cryptocurrency would be worth investing. But now as the market is growing there are thousands of options available and every project brings something new to the industry. Some are good in terms of security whereas some offer instant payment solutions internationally, some promise anonymity while some provide the ability to build smart contracts and dApps. Although, not all of them are as worthy as they claim and it is your responsibility to find out which crypto can provide you max benefit. Nevertheless, in this article, we are going to talk about one such crypto that provides you with the ability to develop decentralized apps. So, what is Tezos cryptocurrency and how it is unique from others? As you know the first-ever blockchain to provide such features was Ethereum and it is still the second-largest crypto.
So, what about Tezos that is better than other cryptos and why should you invest in it? Let’s dig in deep and get all the answers right away.
Let’s Find Out What Is Tezos
Just like Ethereum, Tezos is a blockchain platform that can build smart contracts and decentralized applications. But the difference is that it works on proof of stake protocol while Ethereum uses proof of work. The protocol used in Tezos is what makes it unique as well as eco friendly. Moreover, those who own the Tez coin can contribute to the decision of the blockchain that concerns its future. Due to the fact that the Blockchain is based on proof of stake, there’s no need for miners, those who verify transactions are known as bakers instead.
Know Everything About Tezos History
Now that you know what is Tezos, let’s dig into its history. Tezos blockchain was developed by Kathleen Breitman and her husband Arthur Breitman. Both husband and wife have commendable experience in blockchain and finance. Kathleen Breitman was once a senior strategy partner at R3, one of the largest blockchain consortium.
So, the blockchain came into existence when Arthur Breitman released what is Tezos cryptocurrency. The project raised a significant amount of $232 in its ICO and the mainnet was released by September 2018.
The launch of the coin was delayed because of the conflicts between the president and co-founders of Tezos foundation. It was the Tezos price which almost surged to the 2017s all-time high at $3.96 in February 2020, that renewed its excitement in the market. If you are also wondering whether Tezos is worth investing or not then read this guide till the end and find out yourself.
What Makes Tezos Unique Than Other Blockchains?
So you know what is Tezos but what’s about it that makes it unique? First of all, unlike other blockchains that are dependent on developers and miners for decision making about the network, Tezos allows all the users to participate in it. Which means anyone using blockchain will have the say in the decisions of the network’s future upgrades. According to the developers of the platform, Tezos stands out from the crowd by allowing stakeholders to take part in decision making regarding the protocol upgrades.
Unlike Ethereum, the smart contracts built on latest tezo news as well as the verification methods used are more secure which eliminates the risk of token burning. This makes it a perfect blockchain for developing financial contracts.
The Thing About Baking
As we’ve mentioned above, in Tezos, you don’t actually mine cryptocurrency but produce it by baking. This baking has nothing to do with the baking you do in your kitchen. The process of producing and validating blocks in Tezos blockchain is known as baking. Here’s how it works!
- First of all, the user must have more than 8,000 XTZ (Tez coins) to take part in the proof of stake system of the blockchain. The chances of you getting selected as a baker depend on how much you put at stake. That being said the more XTZ coins you put at stake, the higher are your chances of earning baking rewards.
- If you have enough technical knowledge as well as infrastructure that works 24*7 Besides the minimum amount of coins, you can go for Solo baking to get all the rewards to yourself.
- An alternative is to lend your coins to a baker and share the profits. The person who lends the coins is known as a delegator. This method is useful if you don’t have the required infrastructure to bake blocks on your own.
Now that all your doubts about what is Tezos are clear, let’s have a look at how you can buy them and where.
How To Buy XTZ?
Tezos is available for trading on all major exchanges, however, you might find it difficult to buy it directly with fiat currency. Even the crypto exchanges that support fiat currency deposit, does not let you buy the cryptocurrency directly from it but by exchanging it with other cryptos. So, what you can do in this case is to buy the supported cryptocurrency using fiat like Bitcoin and Ethereum and then exchange it for Tezos. You can also look at P2P platforms if someone is taking fiat for XTZ and vice versa. Some of the major crypto exchanges that let you buy Tezos are Coinbase, Kraken, Bitfinex, ChangeNow and eToro.
Once you buy Tezos coins, you must have the best Tezos wallet to store it somewhere safe. You should not leave your coins in the exchange wallet due to security reasons but store it in a hardware wallet. Hardware wallets are safest among all but you will have to invest around $50 to get them. Some of the best Tezos hardware wallets are Ledger Nano S, Ledger Nano S, and Trezor One. In case, you want to go with software wallets, you can use TezBox and Atomic Wallet.