What is Tezos (XTZ)?

Qué es Tezos (XTZ) Bitnovo
5 min read

Tezos is a platform that, like Ethereum, serves to create smart contracts and Dapps (decentralized applications). In a nutshell, TEZ is a blockchain free and decentralized with characteristics such as self-government.

Being a community governed by itself, it has as its main objective that its owners work together to bring ideas and manage the platform so that the protocol improves every day.

History of Tezos

The platform was developed by Arthur and Kathleen Breitman, strategy partner of R3, a blockchain consortium. In August 2014, Arthur Breitman published two white papers on Tezos in which he was proposed as a substitute for Bitcoin. The basis of this suggestion emphasized the inability of Bitcoin to adapt to Tezos, which continues to evolve.

It was not until September of the year 2018 when the Tezos protocol was officially released. Previously the ICO (Initial Coin Offerings) In July 2017, raising a total of 232 million dollars. Months later, in July 2018, a beta network who eventually became mainnet on 17 September.

How does Tezos work?

One of the main features of TEZ is its self-government. This is achieved by a mechanism of democratic votes implanted by the Tezos foundation, where cryptocurrency owners can decide how it is updated over time.

In short, Tezos has a chain government who can decide, by vote, what will happen to the platform always so that benefits it.

This platform is connected to a digital token called Tez or Tezzie (XTZ). This digital token is mainly used in Tezos blockchain as security tokeny is based on proof of stake protocol (PoS). This function allows cryptocurrency owners to process payments with this, make decisions in the chain and participate in each process of advancement on the platform.

Unlike the other cryptocurrencies, in the Tezos blockchain network there are no miners. The process of building blocks is called “baking” and instead of miners do it the bakers”.

To become a baker the candidate must apply for his participation and deposit the amount of Tezzie defined. The owners must have a minimum of8.000 Tezzie to participate in the process of building blocks.

If for some reason the baker does not reach the minimum of funds can delegate the right to other participants. If the grant is approved, the owner receives a percentage of the investment made.

This blockchain, apart from being distinguished by its mechanism of chain governance, is distinguished by the use of flexible functional coding language that allows changes in the TEZ network without the block chain being hindered.

This leads to another of its main features. The network is constantly changing without the need to run a fork due to blockchain protocol updates or overlays added to the initial project.

Tezos Wallet

If you decide to take this cryptocurrency, you’ll need a wallet to keep them with public and private keys that will ensure the safety of your assets.

There are many types of wallets, each with different features that will be better or worse depending on our needs, however, not all are available for Tezos.

Below we will explain some of the portfolios you can use:

  • Among the wallets supported by Tezos we find hardware wallets, desktop wallets and in a format available for mobile. Among the wallets hardware we find Trezor Model T. This wallet is a device that stores all the keys needed to operate with our cryptocurrencies, however, it is not connected to the internet.
  • Another hardware Wallet option is the wallet Ledger Nano S. It is available for Tezos and many other tokens. These types of wallets offer a high level of security although they are not free.
  • Another option is Exodus Wallet. This wallet allows you to store a large number of cryptocurrencies and has a very simple interface, which makes it the ideal option to start in the world of cryptocurrencies. A feature to keep in mind is that it allows us to store our private key and is free.
que es tezos Bitnovo

How do you mine Tezos?

As we said, Tezos works according to the protocol of Proof of Stake Liquid or test protocol for delegated participation. Under this protocol the network of Tezos allows a consensus on the state of the network between the owners of cryptocurrencies. Also avoids the excessive use of electricity and mine resources, as usually happens in cryptocurrencies like Bitcoin.

These owners, provided they have more than 8000 Tezos (XTZ) can deposit their coins and receive rewards keeping the platform running. This is the process known as “baking” and adds a 5% of the annual supply of the cryptocurrency.

The fact that this cryptocurrency does not work with the consent of Proof Work (Pow) does not mean that we cannot get it otherwise. We can get them with FIAT coins as the euro in exchanges and store them in a wallet.