Bitcoin is no doubt the largest and most popular cryptocurrency. Another cryptocurrency like it, making waves today is Tezos.
Whether you are a fan of Manchester United football club or not, you must have seen the likes of Cristiano Ronaldo, Erik Ten Haag, and so on adorn tops with ”TEZOS” boldly written on them in Carrington. Well, this crypto project partnered with one of the biggest sporting teams and is growing big in the industry.
Tezos was launched to solve a problem in the crypto world like every other good project. It is ranked 39 places below bitcoin but is a project to watch out for.
In this post, we’ll learn about Tezos, its features, and investment opportunities.
What is Tezos?
Tezos is a blockchain network that’s based on smart contracts, in a way that’s not too dissimilar to Ethereum. The project’s token is known as Tezos and it trades by the symbol ‘XTZ’.
The technology underpinning Tezos was first proposed in a white paper that was released in September 2014. It however made its official debut in 2018.
Tezos was founded by Arthur Breitman (who also wrote the Tezos whitepaper) who along with his wife, Kathleen founded a startup called Dynamic Ledger Solutions. The company was tasked with writing the code that would underpin the Tezos protocol. This company was subsequently purchased by the Tezos Foundation to ensure that it owned all of the intellectual property rights relating to the network.
What Makes Tezos Unique?
Tezos have similarities with Ethereum but have had their differences. Tezos aims to offer infrastructure that is more advanced — meaning it can evolve and improve over time without there ever being a danger of a hard fork. For this reason, it has solved one of the shortcomings of both Bitcoin and Ethereum.
Its whitepaper states that its open-source platform bills itself as “secure, upgradeable and built to last”. Its smart contract language also provides the accuracy that is required for high-value use cases.
Although staking is common across blockchains, Tezos has a unique twist on this process. Participants can get involved with the network’s governance through “baking,” where they effectively stake 8,000 XTZ. This creates a financial incentive to act honestly.
Tezos is also unique because of how it has started to be used by high-profile businesses. In September 2020, it was announced that the French banking giant Societe Generale planned to use this blockchain for experimenting with a central bank digital currency.
Tezos also stands out as one of the few crypto assets to be supported by the world’s leading exchanges, Binance and Coinbase. This means users can receive rewards based on the XTZ that they hold.
What is Tezos’ Worth in the Crypto Market Today?
The crypto market has been down for most of the year in 2022. Another project such as Do Kwon’s Terra Luna has collapsed and has affected the crypto industry.
As of writing, the price of $1.49 with a 24-hour trading volume of $50,740,494. XTZ is currently ranked 40th among thousands of cryptocurrencies according to CoinMarketCap. It has a market cap of $1,357,966,403 and a circulating supply of 909,873,426 XTZ coins.
XTZ is available for purchase on crypto exchanges such as Binance, Coinbase, OKX, ByBit, and so on.
How is the Tezos Network Secured?
Tezos uses the proof-of-stake mechanism [PoS] like Ethereum. This means that anyone can become a validator and contribute to the smooth running of the network by staking XTZ coins.
To incentivize honest behavior, rewards are given to those who work in the best interests of the blockchain. Those who act dishonestly risk losing their stake altogether.
Why Investors Consider Tezos (XTZ) Token
Thousands of tokens exist in the crypto world today out of which some are profitable while there are also fake ones. If you need to diversify your portfolio, listed below are the reasons why you should consider the Tezos token.
1. The project is solving a problem
Tezos has a written whitepaper that aims to solve a problem. This open-source platform bills itself as “secure, upgradeable, and built to last” — and says its smart contract language provides the accuracy that is required for high-value use cases.
According to Tezos, its approach means that it is futureproofed and will “remain state-of-the-art long into the future,” meaning it can embrace developments in blockchain technology.
2. The project’s whitepaper can be scrutinized
A token’s whitepaper is where you’ll find the team’s aim for the project and the token’s use cases. Tezos’ whitepaper was written by Arthur Breitman — and in a nod to Satoshi Nakamoto, he wrote his works under the pen name L. M. Goodman.
All that the project has to offer are clearly shown in its whitepaper. It also shows that it was not a copy and pastes from another project. It aims to correct the shortcomings of both BTC & eth.
3. It is becoming mainstream
Tezos’ publicity with Manchester United makes it a popular digital asset. It took the sporting route to become bigger and can be seen by millions of football fans worldwide whenever the ‘Red Devils’ train & warm up. For this reason, investors are looking for what it can offer.
4. It is unique
Tezos staking is different from other blockchains. Participants can get involved with the network’s governance through “baking,” where they effectively stake 8,000 XTZ. This creates a financial incentive to act honestly.
Bakers are tasked with voting on proposed changes to the blockchain’s code in a four-step procedure that takes approximately 23 days. Proposals that receive support from the vast majority of participants are put through their paces on a test net for 48 hours and are fully implemented if they are backed by a super-majority.
Is it Safe To Invest In Tezos?
Cryptocurrency in general is not without risk due to its volatile nature. Return on investment is not guaranteed as you can lose all you put into it.
Tezos however has credibility as a digital asset of value. That doesn’t mean it cannot make you lose money if care is not taken. Do you need to put the amount you can afford to lose why study the asset you are investing on your own?
The Bottom Line
Tezos is one of the fastest growing cryptocurrencies today since its launch. The investment offer it provides as well as its partnership with Premier League giant, Manchester United have made it to be on many people’s lips.