Tezos
Overall Rating
★ 4/5
Tezos Key Features
| Founded | 2014 |
| Rating | 4 |
| Website | https://tezos.com/ |
| Seller | – |
| HQ Location | Switzerland |
| COMPARISONS | Metamask, HollaEx, Hyperledger, GoCoin, BlockCypher, Circle, Mastercard Blockchain, BitFury |
Pros
- Uses an eco-friendly proof-of-stake consensus mechanism
- Permits delegating of XTZ to earn partial rewards
Cons
- Tezos faces stiff competition from emerging smart contracting platforms
- Tezos is not seeing widespread commercial adoption.
Tezos Details/Product Description
Tezos is a self-governing decentralised blockchain that creates a virtual commonwealth. Tezos was created to make formal verification easier. Formal verification is a technique that increases the security of the most delicate or financially weighted smart contracts by demonstrating the accuracy of the transaction code through mathematical proof. Moreover, a cutting-edge consensus mechanism built on Liquid Proof of Stake gives every user the ability to edit, secure, and contribute.
The cryptocurrency Tezos had the most successful ICO of all time at the end of 2017, and in 2021 the token of the established smart contract platform has seen its price rise by over 125%. The sophisticated consensus mechanism, an active community, its programming language and many DeFi projects make XTZ a consideration for many investors. Today, we will discover even more about this crypto, so let’s get started!
What Are Tezos and Cryptocurrency?
Environmentally friendly. Powerful. Secure. When we familiarised ourselves with the Tezos crypto, these three arguments initially crossed our minds. From our point of view, this is also evident from the XTZ homepage. Let’s take a look at these arguments, which can of course be defined as objectives.
Tezos coin has set itself the task of protecting the environment. This may just be a side effect of a resource-saving architecture. Be that as it may. The fact is that XTZ requires less effort to process a transaction. Compared to Bitcoin or Ethereum, it is more energy-efficient to process a trade. This in turn also has a positive effect on the operating costs for the coin. In our view, this energy-saving programming is an important building block for creating a successful cryptocurrency in the future.
However, the virtual coin is not only good to buy Tezos for the environment and energy-saving, but it is also considered powerful. The structure of the coin can be expanded at will. In addition, the provider itself talks about “smarter smart contracts” on its website. These are computer protocols that map contracts or support the user in concluding a negotiation. Nevertheless, XTZ places its fate to a certain extent in the hands of its community. This is because the community can vote on changes or even evaluate and suggest them.
Finally, the Tezos coin is considered secure. Why? This is because the token is modelled on other sectors in terms of security. If the security standard can be compared with the fields of aerospace, nuclear and semiconductor technology, then this is a strong argument in favour of XTZ. Corresponding verification is required at the protocol and user level. The programming was set up in the OCaml and Michelson languages. Nevertheless, the source code of XTZ can be found on GitHub.
Interesting Facts about the Cryptocurrency
The actual foundation of the Tezos dates back to 2017. Back then, Arthur Breitmann and his wife Kathleen created the coin. At the same time, they made a security promise. Arthur Breitmann previously worked at the American bank Morgan Stanley. But what makes XTZ a cryptocurrency?We have collected a few facts.
No miners
XTZ has bakers. A minimum of 10,000 XTZ must be produced as a block. You can think of a system like mining. But it increases security.
Community participation
Users can actively participate in Tezos coin. Changes to the digital currency must be evaluated. New features can be suggested or approved.
High security
Techniques at the protocol and application level are also used in nuclear and space travel. XTZ has set itself a high-security standard!
Energy-saving
It is a problem with Bitcoin and Ethereum – energy consumption. It consumes less energy and therefore saves on operating costs. This makes it an environmentally friendly coin.
Infinitely expandable
The cryptocurrency can add or change features and functions via the on-chain upgrade mechanism. According to Tezos prediction, this allows the token to be further improved.
Modular architecture
This and the formal upgrade mechanism minimise disruptions, ensure regular updates and expand functionality. This makes XTZ highly scalable.
Pros and Cons of the Cryptocurrency Tezos
Like every cryptocurrency, it also has some advantages and disadvantages.
Advantages of XTZ
- Innovative consensus mechanism
- Multiple programming languages (functional & imperative)
- Technically mature concept
- Strong price increase
Disadvantages of XTZ
- High volatility
- Fierce competition with other smart contract platforms
- Negative headlines in the past
How Does the Cryptocurrency Tezos Work?
Anyone who has decided to will come across several options for trading or buying the token during their research. There are various online brokers, crypto exchanges and peer-to-peer marketplaces to choose from. Which trading centre seems suitable depends on your strategy and the goals you want to achieve if you buy Tezos:
- If the focus is on profit, it makes sense to focus on crypto securities and derivatives, especially CFDs. CFDs are available from various online brokers.
- For those who prefer to invest in the network or use applications, a crypto exchange is a good place to buy real tokens. It is an integral part of the top 50 cryptocurrencies that can be traded on the market. Accordingly, it is listed on the largest exchanges such as Binance, Coinbase and Kraken.
- Peer-to-peer marketplaces are unregulated trading centres where the provider only provides a platform but does not intervene in trading. This means that Tezos coin buyers and sellers must agree on the terms of purchase. However, due to the increased risk of fraud on these trading platforms, we advise against using them and instead recommend buying cryptocurrencies.
What Are the Alternatives to Crypto Tezos?
The crypto scene, and with it the entire blockchain industry, is booming. Nobody wants to just stand on the sidelines and watch. Investors who don’t want to buy this coin after all have two alternative ways to benefit from the growth in the sector:
Alternative 1: Other Blockchain-Related Investments
Private and institutional investors want to invest in Tezos and blockchain projects, but the latter are only allowed to use the stock exchange for trading. This leaves the option of investing in suppliers of blockchain technology or exchange-traded crypto funds. The first option is to invest in leading cryptocurrencies such as Bitcoin, Ethereum or Cardano (ADA) – combining high potential returns with acceptable volatility.
An often overlooked option is to invest in blockchain shares or one of the growing number of crypto funds.
Alternative 2: Investing in the Best-Known Cryptocurrencies
It is an exciting coin ranked 32nd out of all cryptocurrencies and it’s totally worth to buy Tezos, but some readers may prefer to choose from the leading coins in the top 5 or even other options:
- Buy Bitcoin: Invented in 2008 as the first cryptocurrency, Bitcoin is the most popular coin of all with a 60% market share. Every crypto investor should have some Bitcoin in their portfolio.
- Crypto funds: Diversified crypto funds also enable institutional investors not only to invest in Tezos, but other cryptocurrencies as well and represent an interesting investment opportunity.
- Buy Ethereum: Launched in 2013, the smart contract platform has changed the blockchain world forever. Ethereum is home to thousands of dApps and over 90% of all DeFi projects.
- Buy Cardano: The founders’ scientific approach combined with an efficient consensus mechanism makes Cardano (ADA) a promising smart contract platform and rapidly rising cryptocurrency.
- Blockchain shares: Suppliers to the blockchain industry, such as manufacturers of graphics cards, microchips and processors, are clear beneficiaries.
Is Tezos a Good Investment?
If you want to buy this coin, you can do so with either a XTZ CFD or real tokens. Which option is better? This cannot be said across the board; rather, investors need to know their goals, interests and motives.
The CFD is the right choice if you as an investor are focussing solely on price gains or profitable trading with the Tezos crypto. With the XTZ CFD, you can participate in the price development but do not need to have a crypto wallet. The financial instrument of a contract for difference is managed directly by the broker in the portfolio and can be sold at any time.
Buying real XTZ, on the other hand, is the better option for die-hard fans and staunch supporters of the XTZ blockchain. By buying real XTZ tokens, you can participate in governance decisions and be rewarded with more tokens in the baking process. The main disadvantage is that real tokens must be stored and managed in a crypto wallet.
Conclusion
Many investors are currently looking to buy the cryptocurrency XTZ. As a powerful smart contract-capable dApp platform with a unique consensus mechanism and its programming language, XTZ price prediction stands out from the field of altcoins. Adoption of the platform is increasing, with DeFi projects in particular being among the most popular use cases.
Nevertheless, in addition to the advantages, investors should not lose sight of disadvantages such as the strong competition among dApp platforms, some conflict in the XTZ community and the high volatility of the Tezos price. A fantastic price increase of 125 % remains for the last 12 months. Buying this coin is easy and possible without a wallet, especially with XTZ CFDs, and real tokens also have their appeal. We hope our review will help you on your trading path!
F.A.Q.
XTZ is a decentralised blockchain that facilitates formal verification, a technique which mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighted smart contracts. When it comes to legality, XTZ operates similarly to other blockchain technologies, meaning its legal status depends on the jurisdiction. In countries where cryptocurrencies are recognized by law, It can be considered legal. However, users should be aware of their local laws before engaging with XTZ or any cryptocurrency.
As for safety, XTZ use of formal verification in smart contracts is designed to prevent common smart contract vulnerabilities. This does not eliminate all risks, especially those inherent in cryptocurrency markets or digital assets, but it does provide a robust foundation for transaction security. Users should exercise caution and perform due diligence when investing in or using cryptocurrencies. It’s also worth noting that it has undergone several upgrades to enhance functionality and user experience, which speaks to its active development and community engagement.
XTZ is a blockchain platform that aims to provide a decentralised and self-amending ledger for smart contracts and decentralised applications. It claims to offer features such as on-chain governance, formal verification, and proof-of-stake consensus.
Whether it is a good investment or not depends on several factors, such as the investor’s risk appetite, time horizon, and market conditions. It is a volatile and speculative asset that may experience significant price fluctuations in the short term. However, some investors may see potential in its long-term vision and innovation.
As with any investment, it is important to do your research and understand the risks and rewards involved before investing in XTZ. It is not a legal tender and is not backed by any government or entity. Investors should only invest what they can afford to lose and diversify their portfolio with other assets.
It is a blockchain platform that aims to offer smart contracts and decentralised applications with a high level of security, scalability and governance. If you are interested in investing in it, here are some steps you can follow as a beginner:
1. Choose the best Tezos wallet. A wallet is a software or hardware device that allows you to store, send and receive tokens (XTZ).
2. Buy tokens. You can buy tokens from various platforms, such as exchanges, brokers or peer-to-peer platforms.
3. Transfer tokens to your wallet. After buying XTZ tokens from your chosen platform, you should transfer them to your wallet for safekeeping.
4. Stake XTZ tokens. Staking is a process that allows you to earn rewards by participating in the network’s governance and security.