Hey PUBLISH0X community! Welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible
In this article we talk about more features of Tezos!
last E&S article I introduced you Tezos (XTZ) and I said that is a blockchain network connected to a digital token, which bears the name tez or tezzie. Unlike other cryptocurrencies such as Bitcoin or Litecoin, the Tezos network does not rely on tez token mining. Instead, token holders receive a reward for taking part in the "proof-of-stake" algorithm consensus mechanism. The main purpose of Tezos is to have token holders collaborate with each other to make decisions that will improve the cryptocurrency in the future.
Now let’s see some new things about Tezos!
As said on Tezos website: "At Tezos, all stakeholders can participate in the governance of the protocol”. This is a concept that is as interesting as it is innovative. "On-chain governance" works similar to a standard democratic process. Example: let's assume that a developer proposes a change to the protocol, which aims to improve the blockchain. As the change is suggested, an invoice for the proposed work is also attached, so all XTZ holders vote on the proposal. If the change passes the vote, it is distributed across the testing network. Once the proposed control has been tested and does what it claims, another vote takes place. If XTZ owners decide to keep it, the change is carried on the main network.
The two biggest advantages of "on-chain governance" are the incentive structure for developers to keep coming up with new ideas and improving the protocol and the democratic voting system that gives all stakeholders a voice and prevents centralization of the network.
What makes Tezos different?
Tezos hopes to become a major blockchain and market itself as an alternative to blockchains such as Ethereum, Zcash, and Bitcoin. So, what makes Tezos unique and can be seen as a viable alternative to these other major blockchains?
Every other blockchain can be described by a triplet (state, apply and score).
- : Internal variable state type. For example, in Bitcoin, this would be a set of unspent outputs.
- : adopt state S, transaction T and generate a new state S transformation.
- : Determine the scoring function for valid blockchain branches. In Bitcoin, this is the total amount of hash power on the chain.
Tezos distinguishes itself by treating the apply and score variables as part of the mutable state, allowing the LEDGER rules to be autonomous. This is the key, because the ledger rules control the evolution of the ledger.
Tezos Pros & Cons
- Adoption: Tezos has returned to the mainstream media after being dormant for some dormant years. As compared to previous years, it is being greatly accepted by the public and developers are giving the Tezos network a shot as some are building their DApps on top of the Tezos network.
- Transaction speed: The transaction speed is much lower compared to other cryptocurrencies.
- Transaction cost: There are virtually zero transaction fees on the Tezos network. Contrarily, the users are rewarded for their involvement in the transactional process.
- Energy consumption: Tezos Blockchain is not based on mining procedures.
- Decentralization: At the core of Tezos Blockchain is an improved decentralized network. It allows users better participation in the process while maintaining a high level of decentralization of the network. Tezos is basically cleaning the concept of decentralization from tyrannical remnants.
- : Relatively low. The coin is relatively new/unproven.
- Transactions per second: Tezos has achieved a TPS of around 40 on its Mainnet. However, the Tezos foundation claims that its theoretical limit is much higher than this.
- : Transactions with this coin are pseudonymous.
With this second article about Tezos we have discovered new things about this project.
Next week I’ll introduce you a new cryptocurrency!
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