We offer a complete guide to the Tezos (XTZ) Cryptocurrency and the details of the technology. We include helpful information, historical charts, and technical details. This article is brought to you by Digital Financial Market
Last Updated: 12/22/2021
Tezos (XTZ) Cryptocurrency
Tezos (XTZ) is a cryptocurrency that is meant to facilitate smart contracts through a proof-of-stake protocol. Their protocol allows for additional XTZ blocks to be rewarded to validators that carry 8,000 XTZ or more. This method allows token holders to stake their Tezos to validators for additional crypto rewards in the form of XTZ.
To learn more, read the Tezos Whitepaper.
Tezos (XTZ) Price Chart
Tezos Blockchain – Proof of Stake
The Tezos Blockchain uses a protocol called proof-of-stake, which prevents vulnerability to a Sybil-Attacks (A form of Crypto Fraud). This Protocol also allows any stakeholder to contribute to network stability in the form of data mining or staking (Also called Baking).
Computers and data miners can contribute to the blockchain by processing transactions for a reward of 40 XTZ per block. This data mining process creates the blockchain and allows for transactions and smart contracts.
Proof-of-stake is far more efficient and less expensive than proof-of-work protocol followed by Bitcoin and other Cryptocurrencies. You can read the Official Tezos Statement on Proof-of-Stake here.
Earning Interest on Tezos – Baking
Tezos token holders can opt to have their XTZ staked, or borrowed, by the data miners so that more XTZ can be awarded with every block completed. This process, called “Baking,” requires a minimum of 8,000 XTZ for additional block rewards. Consequently, Token holders are then rewarded for their stake by receiving XTZ to their Tezos Wallet.
There are many platforms that allow for pooled baking for a return. Coinbase notably carries a 4.63% APY (Annual Percentage Yield).
History Of Tezos Cryptocurrency
The Tezos Cryptocurrency Launched in 2018, after the Crypto Bubble of December 2017. Tezos was not available on open markets until July 2018 and had an open market price of roughly $2 USD per XTZ at launch.
The project was created by Arthur and Kathleen Breitman as early as 2015. The Tezos foundation, a section of the Tezos DAO (Decentralized Autonomous Organization) was developed by Johann Gevers and established in Switzerland.
After the launch in 2017, the Breitman’s and Gevers spiraled into legal disputes over executive payouts, business practices, and Tezos role as a possibly unregistered security. In 2018, Gevers resigned from the board and the council had been replaced.
The long litigation process came to a conclusion in 2020 when the Tezos Foundation Settled the Unregistered Security Lawsuit with the SEC for $25 Million USD.
After the long and arduous conflict, the Breitman’s were reinstated to the Tezos Foundation’s council in 2021.
Tezos (XTZ) Protocol
Tezos Protocol Upgrades
In 2021, Tezos underwent 4 upgrades named “Edo”, “Florence”, “Granada”, and “Hangzhou”. The first upgrade, Edo, added improvements in privacy preserving smart contracts.
The second protocol upgrade, Florence, doubled the size of operations and smart contracts. This update combined with the next upgrade, Granada, to greatly reduce gas fees and optimize the blockchain. In addition, Granada allowed for a process called liquidity baking, where small amounts of each finalized block to be contributed to a liquidity pool for XTZ to tzBTC.
In December of 2021, Tezos initiated its Hangzhou upgrade, a protocol designed to improve liquidity baking and database optimizations.
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