Tezos is an open-source platform for assets and applications that can evolve by upgrading itself. Stakeholders govern upgrades to the core protocol, including upgrades to the amendment process itself.
Tezos uses the proof of stake consensus, so this means the coin can be staked by an individual and earn profits based on the number of tokens the person is staking.
Self-Amendment
Tezos is self-amendment, which basically means it can upgrade its network without splitting into two different blockchains.
In other words, it can be upgraded on the same chain without getting forked.
For example, bitcoin consistently gets forked into different blockchains like BCH, BTG, etc, but that is not the case with tezos.
On-chain Governance
As Tezos is a stake-able coin, it uses the on-chain governance protocol.
on-chain governance is nothing but the rights given to the stakeholders for electing and voting for the development of the network.
Decentralized Innovation
Proposed amendments that are accepted by stakeholders can include payment to individuals or groups that improve the protocol. This funding mechanism encourages robust participation and decentralizes the maintenance of the network. Fostering an active, open, and diverse developer ecosystem that is incentivized to contribute to the protocol will facilitate Tezos development and adoption
Smart Contracts and Formal Verifications
Similar to the Ethereum network, tezos also provides a platform for smart contract and decentralized application development, that can not be censored or shut down by third parties.
Tezos offers a formal verification, which basically tries to improve security in the system. This technique is used to eliminate bugs in the system.
Proof of Stake
Participants (“nodes”) in decentralized, peer-to-peer networks provide the necessary computational resources that keep a network up and running. Proof-of-Stake (PoS) is the mechanism by which the various participants in Tezos reach consensus on the state of the blockchain. Unlike other PoS protocols, any stakeholder can participate in the consensus process in Tezos and be rewarded by the protocol itself for contributing to the security and stability of the network. Additionally, PoS is less costly than other consensus mechanisms and lowers the barriers to entry for involvement.
Wallets to Store and Use Tezos
The tezos holders can store their coins in multiple wallets including mobile and desktop.
Some of the highly suggested wallets that are gone through external security audit are as follows:
Software Wallets
Galleon Wallet – (MacOS, Windows, Linux)
Tezbox Wallet – (MacOS, Windows, Web, Android)
Kukai Wallet – (Web)
Hardware wallets
Ledger and Trezor
Bake (Validator)
“Baking” is the act of signing and publishing blocks to the Tezos blockchain. Bakers are a crucial component of the Proof-of-Stake consensus mechanism by ensuring that all transactions in a block are correct, that the order of transactions is agreed upon, and that no double-spending has occurred.
Users earn staking rewards by becoming a Baker.
This post was originally published by us at : https://blockchaintrends.io/what-is-tezos-cryptocurrency/