There is currently a lot of interest in Tezos (XTZ). The cryptocurrency has a market cap CHF 2.2 billion and has more than double in price since the start of the year.
So what is Tezos?
Put simply, Tezos is a smart contract platform with a simple concept: anyone who owns XTZ cryptocurrency can vote on possible changes to its rules, and once decided, the software would automatically update to ensure the changes are made.
By using this system, Tezos aims to reduce the chances its blockchain might fork, creating two separate cryptocurrencies with two distinct prices. With Tezos, all stakeholders can participate in governing the protocol.
The arrival of Tezos effectively separated crypto assets into two camps, those with “off-chain governance” and those with “on-chain governance” (Tezos).
Who created Tezos?
The Tezos blockchain was created by husband and wife Arthur and Kathleen Breitman in 2014 through the Dynamic Ledger Solutions, a startup they founded to develop Tezos.
The Tezos team held an initial coin offering (ICO) in July 2017, raising the equivalent of $232 million, the largest ever ICO at the time. Following the ICO, the Tezos Foundation, based out of Switzerland, was created to launch the protocol.
The foundation also committed to purchasing Dynamic Ledger Solutions, including all intellectual property rights to the Tezos blockchain, per the ICO agreement.
Tezos price summary and future
Soon after the close of its ICO, Tezos was hit by two consecutive lawsuits and lost the support from its community, with early investors rushing to sell out. However, despite the controversy and in-fighting over the past two years, the network seems to have emerged from the darkness, launching its beta in September 2018. Nevertheless, the network is largely unused at the moment, as the foundation struggles to attract partners and new dApps. But it has several factors working in its favor:
• The Tezos network has released its betanet and uses a bug bounty programme to speed up the process of solving the technical issues.
• Tezos, which styles itself as a "self-amending cryptographic ledger" and uses the so-called proof-of-stake consensus model, has emerged as a favourite blockchain and cryptocurrency for tokenized real-estate and security tokens.
• Mati Greenspan, the founder of market analysis firm Quantum Economics (and who holds some tezos) said that “Tezos seems to be one of the most popular platforms for new projects to build on at the moment (…) "Several projects that I'm currently advising are using it. As well, the tokenomics are structured in a way that a lot of the incoming supply are diverted to staking and taken off the market."
• Joe DiPasquale, chief executive of hedge fund manager BitBull Capital, said that “Tezos is one of the more promising projects to come out of the initial coin offering-era, which gives it an edge in times such as these, when the bitcoin price appreciates and lifts the market for a select-few, quality project".
• The Tezos Foundation has announced research grants, partnering with a number of prestigious institutions, including Cryptium Labs, Cornell University, and France-IOI and INRIA. This highlights the foundation’s focus on education and research that will help propel the cryptocurrency’s mass adoption in the future.
Tezos has faced a tough start but is now becoming a promising platform as it offers powerful technical innovations in terms of consensus mechanism, smart contract security, and self-upgrade procedures. Tezos have a supportive community, “Tezos Foundation,” that is incentivized to help improve its protocol and the entire ecosystem. Despite many hiccups, the network seems to be on the path of recovery. Still, only time will reveal whether it can recover from the issues of delays and setbacks.
More informations about Tezos on www.abra.com, Forbes, www.coinhouse.com, www.exodus.io, Blockchain Council and www.kraken.com
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