What is Tezos: The Definitive Guide

What is Tezos The Definitive Guide
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The definitive guide to the Tezos blockchain and ecosystem

Tezos is an open-source, self-amending, eco-friendly blockchain protocol that leverages the proof of stake consensus model. Tezos’ native cryptocurrency is XTZ, which enables users to interact with the Tezos blockchain. After years of evolvement, Tezos has created a global community of validators, researchers, builders, and creators. 

After years of development, the Tezos network has become the blockchain infrastructure of choice for many products, thanks to its high performance and low cost. Tezos’ dynamic NFT ecosystem is particularly noteworthy, which is emerging as the next frontier of digital art. 

Content:

What is Tezos?

Tezos is an open-source, self-upgradeable blockchain that can execute peer-to-peer transactions and provide a platform for running smart contracts. Tezos launched its testnet in June 2018, and its mainnet went live in September of the same year. The native cryptocurrency that facilitates the Tezos ecosystem is XTZ. 

The Tezos network utilizes a proof-of-stake consensus mechanism, which is more cost-effective and can support larger transaction throughput than the proof-of-work model. To learn more about the basics of consensus mechanisms, you can read DappRadar’s Ultimate Guide on Blockchains.

The Tezos network strives to power the Web3 revolution and mass adoption, with user participation and governance at its core. It is worth noting that Tezos adopts an on-chain governance model that allows its community to vote for upgrade proposals to amend its protocol. 

Community-driven, energy-efficient, forkless upgrades and robust scalability are among Tezos’ greatest strengths.

What is XTZ?

XTZ is Tezos’ native token, with a live market cap of $1,724,662,378 and a circulating supply of 904,637,050 tokens. XTZ serves as a medium of exchange for using Tezos, granting holders the right to participate in the platform’s on-chain governance.

What’s worth highlighting here is that Tezos’ community-driven governance model rewards developers with XTZ tokens if their upgrade or modification proposals are accepted.

Wallets for XTZ

Various wallets are available to store and use XTZ, such as Kukai, Temple, and ZenGo. In addition, each has undergone at least one independent external security audit. The wallets below are listed on the official Tezos website.

tezos wallets

If you’re a crypto beginner unsure of what wallet to use, this DappRadar article provides you with a list of the most popular cryptocurrency wallets. If you want to learn about ZenGo, Ledger, Trezor, and Temple, the wallets suitable for XTZ, this article can also help you.

How does Tezos work?

​​Tezos distinguishes itself from Bitcoin and Ethereum by adopting a community-centric governance system. Furthermore, it can evolve by upgrading itself, a mechanism that precludes hard forks. Furthermore, Tezos uses a proof-of-stake model for blockchain validation, which consumes less energy than Bitcoin and Ethereum

Now let’s take a closer look at Tezos’s technical advantages.

Self-amendment

Self-amendment allows Tezos to upgrade its network without having to fork the network into two different blockchains. Traditional blockchains, such as Ethereum or Bitcoin, usually execute a hard fork when making a significant change. Why does this feature make Tezos different?

This ends up dividing the community, altering stakeholder incentives, and disrupting the network’s long-term stability. However, with Tezos,  developers can be confident that the network won’t split and that their plans can be implemented uninterruptedly.

Smart contracts & formal verification

Developers can build smart contracts and create dapps on Tezos. Furthermore, Tezos employs formal verification, a process used to verify that a program conforms to certain specifications. Simply put, it uses mathematics to answer the question, “Have we made what we were trying to make?”

This technique, if used properly, can help avoid costly bugs and the contentious debates that follow. 

DPoS

Tezos has implemented a delegated proof-of-stake (DPoS) model. In this model, XTZ holders must stake their tokens in a smart contract to maintain blockchain integrity. Users who do not want to participate directly in the consensus protocol can simply delegate their rights to other users. This is the so-called DPoS model. 

Is Tezos good for NFTs?

Ether’s scalability issues have caused many developers and creators to leave in search of alternatives. Tezos, with its fast transaction speeds and low fees, quickly caught their attention.

Minting an entire NFT collection on Objkt, the blockchain’s most popular NFT marketplace, will only cost users around 1 XTZ. This has led to Tezos quickly becoming one of the most popular blockchains for digital artists.

More notably, Tezos has also invested considerable effort in supporting the digital art community. For instance, it has curated several interactive art experiences at multiple art fairs, educating the general public about crypto art.

What are the popular NFT marketplaces in Tezos’ ecosystem? 

There are various marketplaces for NFT enthusiasts to mint, collect, and trade NFTs on Tezos. According to DappRadar’s NFT tracking, Objkt is the largest and most popular marketplace on Tezos. The most popular marketplaces on Tezos are listed below.

Is Tezos good for gaming dapps?

Gaming has become one of the fastest growing sectors on Tezos. Gaming studios and publishers that leverage blockchain and Web3 technologies are joining the ecosystem. For example, ELEET GAMES will build on Tezos to bring a joyful playground that is scalable, user-friendly, and energy-efficient for its community.

In addition, Game Geeks, a decentralized gaming hub empowering gamers and developers, is building on Tezos. The platform will make it easier for game developers to create and host their games on the Tezos blockchain. As for gamers, they can play these games, collect NFTs, compete with each other, and have fun while earning lucrative rewards.

How to track NFTs and dapps on Tezos using DappRadar?

The network’s community-driven governance and protection against blockchain forks have garnered Tezos a lot of support from developers. Moreover, Tezos’ digital art landscape is highly distinctive, incubating several emerging crypto artists, including Shvembldr, Yazid, Baiwei, Reva, Niq, and more.

tezos nft artists

As the Tezos ecosystem becomes more vibrant and diverse, is there a good way to keep track of what’s happening on Tezos? DappRadar can equip Tezos users or anyone who wants to learn about Tezos dapps with its rich data-driven information. Check out these helpful tracking tools below to keep track of the latest development of dapps on the Tezos.

DappRadar will continue to monitor and report on Tezos and its ecosystem as they evolve. Follow us on Twitter, Discord, and Youtube to keep up with the dynamic blockchain world. 

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