ROOT
Crypto of the Week: Tezos
Even if it hasn’t reached the heights of something like Cardano or Solana, Tezos is a cryptocurrency that investors may want to keep an eye on.
Crypto of the Week: Tezos
Even if it hasn’t reached the heights of something like Cardano or Solana, Tezos is a cryptocurrency that investors may want to keep an eye on.
Tezos tries to rethink the way that cryptocurrencies work, erring away from structural weaknesses without losing out on the potential strengths.
If you’re thinking about adding Tezos XTZ token to your portfolio, there are a few things you’ll want to know beforehand.
What is Tezos?
At a surface level, Tezos is a blockchain network that supports smart contracts in much the same vein as something like ethereum. The infrastructure here is designed to support decentralised applications and transactions.
Beyond that, the main problem that Tezos looks to solve is the structural volatility presented by hard forks.
For the uninitiated, a hard fork is when radical changes to a blockchain result in a cryptocurrency essentially splitting into two branches – one with the changes and one without.
Hard forks are the reason why both ethereum and ethereum classic are able to exist alongside one another. One blockchain accepted the changes to the protocol; the other did not. While such network upgrades can sometimes be necessary, they remain contentious among the crypto community and typically come alongside a period of volatility for the cryptocurrency in question.
To avoid this situation, Tezos uses a unique on-chain governance model that allows the blockchain to implement protocol changes automatically once accepted.
The Tezos network also boasts a unique spin on a proof-of-stake consensus model, called baking.
Who made the XTZ token?
Tezos was founded by Arthur and Kathleen Breitman via a start-up called Dynamic Ledger Solutions.
This company was later acquired by the Tezos Foundation, which now manages the protocol and all intellectual property rights relating to it.
What is the XTZ token used for?
The Tezos coin (XTZ) is the native token of the Tezos blockchain.
In addition to being bought and sold via crypto exchanges, its main usage is to facilitate smart contracts on the network. It acts as a medium of exchange for the resolution of such transactions.
XTZ can also be staked in exchange for rewards.
However, unlike other proof-of-stake networks, Tezos requires validators to lock in a security deposit beforehand. This is designed to create a financial incentive for good behaviour and frequent engagement with the on-chain governance process.
How much is the Tezos (XTZ) crypto worth?
As of 2 December 2021, a single XTZ token is priced at US$5.22 per unit.
Tallied up at that price, Tezos has a market cap of approximately US$4 billion.
For comparison, bitcoin (BTC) has a market cap of US$1.3 trillion, while ethereum (ETH) sits in second place at US$490 billion.
Where can you buy the XTZ token?
While the XTZ token is available on many mainstream exchanges. This list currently includes:
- Binance
- Coinbase
- Huobi Global
- KuCoin
- Gate.io
- Kraken
- Bybit
RELATED ARTICLES
About the author
About the author
Earn
Employee satisfaction dips as Australian workplaces tackle retention challenges
Australian workplace satisfaction has declined to 78 per cent as companies grapple with economic pressures and changing work dynamics, according to a new report. Read more
Earn
Simplify your finances: The benefits of debt consolidation loans in Australia
In an era where managing multiple debts has become a common financial challenge for many Australians, debt consolidation loans emerge as a practical solution to streamline finances and regain controlRead more
Earn
Long-term welfare dependency declines despite rise in JobSeeker recipients
New research from e61 Institute has revealed that, contrary to popular belief, the number of people reliant on the benefit system in Australia has declined over the past two decades, despite an ...Read more
Earn
Best property investment strategies in Australia for 2024: An expert's perspective
As the Australian property market continues to evolve, investors are keenly looking for strategies that will yield the best returns in 2024. Read more
Earn
Innovative tax saving techniques for individuals and families
Tax time can be daunting for many Australians, but with some innovative planning and smart strategies, individuals and families can maximise their tax savings. Read more
Earn
Top firm says five factors are fuelling the Great Resignation
According to PwC, the Great Resignation is showing no signs of slowing down. Read more
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. Read more
Earn
Employee satisfaction dips as Australian workplaces tackle retention challenges
Australian workplace satisfaction has declined to 78 per cent as companies grapple with economic pressures and changing work dynamics, according to a new report. Read more
Earn
Simplify your finances: The benefits of debt consolidation loans in Australia
In an era where managing multiple debts has become a common financial challenge for many Australians, debt consolidation loans emerge as a practical solution to streamline finances and regain controlRead more
Earn
Long-term welfare dependency declines despite rise in JobSeeker recipients
New research from e61 Institute has revealed that, contrary to popular belief, the number of people reliant on the benefit system in Australia has declined over the past two decades, despite an ...Read more
Earn
Best property investment strategies in Australia for 2024: An expert's perspective
As the Australian property market continues to evolve, investors are keenly looking for strategies that will yield the best returns in 2024. Read more
Earn
Innovative tax saving techniques for individuals and families
Tax time can be daunting for many Australians, but with some innovative planning and smart strategies, individuals and families can maximise their tax savings. Read more
Earn
Top firm says five factors are fuelling the Great Resignation
According to PwC, the Great Resignation is showing no signs of slowing down. Read more
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. Read more
