Tezos (XTZ) Price
Here you can see the current Tezos (XTZ) price and its historical trend. Tezos (XTZ) is one of the cryptocurrencies you can trade on BISON.
Table of contents
What is Tezos?
Tezos ꜩ (XTZ) is a competitive project to Ethereum. It features its own blockchain technology (Layer-1 solution), utilizing a modified version of Proof-of-Stake. Tezos focuses on the use of smart contracts, aiming to make these digital and automated contracts as secure as possible.
Smart contracts, explained:
In a traditional contract, a seller and buyer come to an agreement. For example, one person buys a car from another. In such a deal, there can be problems, like the seller taking the money but not delivering the car, or the buyer receiving the keys and papers but not paying for the car. In a smart contract, Step A automatically leads to Step B. For instance, if a person buys an NFT on the Tezos blockchain and transfers money, the smart contract rule triggers and transfers the NFT to the buyer. This increases security for both buyer and seller, unlike simple deals on platforms like eBay Kleinanzeigen, which rely heavily on trust. Smart contracts significantly reduce the need for trust.
What is Tezos’ unique feature?
With BISON, you’ll find several cryptocurrencies that originated from a hard fork. A hard fork is a split from an existing blockchain, with one of the best-known hard forks being the division between Bitcoin and Bitcoin Cash. The Bitcoin community disagreed on how large a block in the Bitcoin network should be. Part of the community decided to separate from the original Bitcoin project and modify the Bitcoin code, leading to Bitcoin Cash. Since both blockchains are no longer compatible, this is called a hard fork. Such project divisions can be found repeatedly and may threaten the cohesion of a crypto project. Even Ethereum, the second-largest cryptocurrency, has experienced two major hard forks (Ethereum Classic & Ethereum PoW).
Tezos aims to avoid hard forks and their consequences. As a result, the nodes of the blockchain automatically update themselves. What’s special about this? For instance, in Bitcoin, each person owning a (full) node is a participant in the network, verifying blocks. The node runs a specific code, a program. If there’s a desire for change in the community, node operators must proactively update their node. In some cases, an update is not necessary, but significant changes can lead to a network split (hard fork). For example, if 50% of the node operators implement the update and 50% decide against it, there would be two Bitcoin blockchains (see Bitcoin Cash).
With Tezos ꜩ, this is prevented by having the node automatically update. To avoid a “blockchain dictatorship”, there is a democratic process that determines which changes the node receives.
First, there is a proposal period where Tezos network participants can submit ideas. Proposals with the most votes proceed to the next round. All proposals that receive 80% approval in the second round are implemented on a test network. The community can test the update for a certain period. There is then a final vote, where 80% approval is required. Once this threshold is reached, the update is automatically implemented, and all nodes are updated. Individuals who submit ideas can be rewarded with Tez (XTZ) for successfully implemented ideas.
