Tezos, first released in 2018, now has a massive market cap of over $7 billion. However, is it worth buying, and what makes Tezos unique?
Tezos, or XTZ, is a decentralized DPoS cryptocurrency. It introduces a community governance element to its ecosystem. It uses smart contracts, which are contracts built into the blockchain that can run and execute by themselves.
Tezos Coin’s white paper came out in 2014. Through an on-chain governance model, it avoids forks and disagreements. It allows every stakeholder a say in the development of the Tezos ecosystem.
Tezos uses delegated proof-of-stake. Proof-of-stake is a more efficient and cost-effective consensus mechanism than proof-of-work, which is what Bitcoin uses. While proof of work, or mining, takes up a lot of energy, staking does not. What makes Tezos different from non-delegated proof-of-stake coins is that stakeholders delegate bakers (validating nodes) to stake their coins with.
There are currently around 400 bakers on the Tezos network. These validators ensure the security of the ecosystem and confirm transactions for staking rewards. However, Tezos goes beyond that and allows bakers to propose amendments to the blockchain and vote on them in a decentralized governance model.
Each amendment goes through several stages, starting from the proposal stage. Throughout the evaluation and testing of the amendment on a test net, bakers can decide whether to approve or reject it. To be implemented on the main net, over 81 percent of the current Tezos coin supply must be accounted for in the vote. That ensures a true majority.
Bakers are the ones proposing and voting on proposals. Despite that, they ultimately need to vote based on what their stakeholders think. Otherwise, stakeholders can stop delegating them and delegate another baker to stake their coins.
Through this “by the people” governance model, Tezos has been able to avoid the disagreements that led to the hard forks of other cryptocurrencies, such as Bitcoin. In addition, through the proposal mechanism, Tezos remains innovative, with new features added constantly.
Also, Tezos has a modular architecture and on-chain upgrade mechanism that allows it to scale and grow. It also uses advanced security mechanisms to ensure the safety of the network.
After buying Tezos, you can store it in a wide range of online and hardware wallets. Trust Wallet is a great wallet for mobile. It is safe and secure, and you can download it from your app store and back it up with your seed phrase. It is available for both Android and iOS. For additional security, you can choose a Nano Ledger S or Nano Ledger X, both of which are hardware wallets that keep your Tezos keys offline.
It is now easier than ever to buy Tezos Coins. On the Knaken platform, you can buy Tezos and other coins with iDEAL. Simply choose the coin you want to buy, choose iDEAL as your payment method, and complete the purchase—it's that easy!