Smart Contracts Security With the Tezos Blockchain

The open-source platform known as Tezos makes the claim that it is “safe, updatable, and built to last,” and that the smart contract language it utilizes gives the level of accuracy that is necessary for certain applications.

What is Tezos (XTZ)?

Tezos is a blockchain network that is open source and a decentralized computing platform for smart contracts. It launched on the mainnet in 2018. Tezos, in contrast to the vast majority of its rivals, employs a self-evolving governance architecture for its network in an effort to settle controversial disagreements and forestall hard forks.

In addition to that, it utilizes a proof-of-stake consensus algorithm that it developed on its own and calls Liquid Proof of Stake (LPoS). This gives holders of the network’s own cryptocurrency, which is known as tez or tezzies (XTZ), the ability to vote on various ideas to improve the protocol. When XTZ tokens are deposited into an account, anyone can become a validator and contribute to the network.

The initial coin offering for Tezos was, at the time, the most successful and largest in the history of the cryptocurrency industry. A prominent initial coin offering (ICO) was held in July 2017, and it was able to successfully raise 65,681 BTC and 361,122 ETH from a significant number of participants. This equated to a total value of $232 million at the time of the ICO’s completion. The remaining twenty percent was distributed as follows: half went to the Tezos Foundation, which was established by the Tezos co-founders, and the other half went to Dynamic Ledger Solutions.

Tezos became somewhat of a contentious project after its initial coin offering because it ran into legal challenges, which resulted in delays in the introduction of the network. These concerns caused the platform to be delayed. When it was finally released to the public, the digital currency was already well established in a prolonged bear market. Tezos, on the other hand, has effectively surmounted early challenges and continues to be a popular staking platform, despite being a less popular development platform. This is in contrast to the majority of other projects that have been started through ICOs.

Consensus Based on Liquid Proof of Stake Proof of stake has been implemented in a variety of different ways ever since its initial proposal by the creators of Peercoin in 2012. However, it has only become a truly popular consensus model over the past year or two, when all of the recognized platforms, including Ethereum 2.0, Polkadot, and Cardano, launch their own variants of the paradigm.

Tezos, on the other hand, was one of the first projects to put the Proof-of-Stake model into action by designing its own variation of the Proof-of-Stake protocol dubbed Liquid Proof of Stake. It is frequently confused with the delegated proof of stake (DPoS) protocol that is utilized by EOS and Tron; but, as we will see, despite certain similarities, they are not the same.

On the Tezos network, anyone is able to become a validator, often known as a “baker,” thanks to the Liquid Proof of Stake (LPOS) paradigm, which can support a maximum of 80,000 bakers. Although there is a minimum requirement, in order to join as a baker, one does not need to make a significant investment in computing gear.

The minimum requirement is 10,000 XTZ tokens. EOS, on the other hand, has a very low and set number of validators at 21, whereas Tron has 27. In each instance, they must operate technically complicated configurations. In this regard, Tezos is able to claim, with some justification, that it is more decentralized than other DPoS systems. This is because it has a low barrier to entry and a large upper limit on the number of bakers, both of which contribute to a very dynamic collection of validators.

XTZ owners who wish to take part in the management of the organization but do not want to become bakers themselves have the option of delegating their share to a baker, who will be able to count it toward their total of 10,000 XTZ. It is not necessary for a delegator to relinquish their control on their XTZ in order for them to take part in the delegation.

This procedure of voluntary delegation is distinct from the Delegated Proof of Stake (DPoS) election process, in which delegation is a prerequisite.

At the time of this writing, around $2.7 billion worth of XTZ had been staked, and the platform was ranked #7 on the list of staking platforms. Tezos is very popular with stakers. This places it in first place, surpassing EOS, but it is still behind more recent Proof-of-Stake chains like as Ethereum 2.0, Polkadot, and Cardano.

Where can I buy XTZ, and where can I keep it?

Tezos may be bought and sold on virtually all of the main cryptocurrency exchanges, including Phemex.

There are also a great number of wallets that enable XTZ storage. Some examples of these wallets are hardware wallets like as Trezor and Ledger, mobile wallets such as TezBox and Atomic, and desktop wallets such as Tezos.blue.

Conclusion

Throughout its existence, Tezos has been subjected to a series of ups and downs. Nevertheless, this is evidence that the project and its community have persevered and continue to hold a relatively high position in comparison to other competitors in the rapidly changing world of blockchain and cryptocurrencies.

Moreover, this shows that the project’s community has been a driving force behind the project’s success. At the moment, the most difficult obstacle is to attract the interest of decentralized application developers and consumers in the same way that it has attracted the attention of stakeholders. If he is successful in overcoming this obstacle, there is a good chance that he will secure a prominent role in the blockchain ecosystem of the future.