In our commitment to broaden our offerings continually, we are introducing a new project addition - Tezos. Tezos is a blockchain that has the ability to evolve without the need of forking the network into two distinct blockchains. Tezos evolution also known as self-amendment is one of the key differentiators of Tezos, it sets Tezos different from other blockchain platforms.

In this article, we will explore the Tezos blockchain explaining how it works and what makes it unique. We will explore its evolution phases, its native token, XTZ, its tokenomics and statistics. We will also explore the features of Tezos and finally how to buy and trade its native token, XTZ.

What Is Tezos?

Tezos is an innovative open-source blockchain platform that introduces a process called "self-amendment." This process allows the Tezos blockchain to evolve without the need to fork into two separate blockchains. Forking, or a hard fork, occurs when new blockchain nodes reject older versions of the digital ledger, resulting in a permanent split and the creation of two distinct blockchains.

Forking a network comes with advantages in terms of innovation or a ledger roll-back due to security challenges like in the case of Ethereum hard fork to Ethereum Classic (The DAO hack). Blockchain hard forks also come with some disadvantages; these include the division of the community, alteration of stakeholders, splitting of developers, and disruption of network security like the case of the DAO hack.

The need for Tezos came in to solve these problems by giving room for a network to evolve without having to fork the network. Tezos solves these problems by creating a generic and self-amending crypto-ledger with the ability to execute protocol changes.

Conventional blockchains like Bitcoin and Ethereum are purely functional modules abstracted into a shell that is responsible for network operations. These blockchains can not evolve without hard forks and consensus (they have a rigid upgrade process), decentralized applications (dApps) and smart contracts built on blockchains like Ethereum must conform to Ethereum standards. Unlike Ethereum and other EVM-compliant blockchains, Tezos gives room for “Network meta upgrades” which enable the network to evolve to new technologies resulting in dapps and smart contracts built on Tezos to evolve as well. Tezos does this by setting up a seed protocol that defines a method for stakeholders to approve protocol updates, including voting procedure amendments.

Tezos supports all Network stakeholders to participate in governing a protocol. This democratic cycle provides a procedure for stakeholders to reach a consensus on protocol upgrades. This inclusive approach ensures that the Tezos protocol can evolve without the need for distinct protocol forks.

Tezos Evolution Phases

The Tezos blockchain passes through four evolution phases for network upgrades; these phases are governed by community members. Community members propose upgrades for the network and validators vote on which proposals they would like to see explored. The proposal goes through a multi-step voting and adoption process; the phases are listed below:

Tezos Proposal Phase: The proposal period is the first phase in the Tezos upgrading process. Validators in Tezos' Liquid Proof-of-Stake consensus process are referred to as Bakers. During this period, bakers submit and vote on proposed upgrades. At the conclusion of this phase, the proposal with the highest percentage of votes advances to the following phases.
Tezos Exploration Phase: After the proposal phase, the next phase is the “Exploration Phase”. In this phase, there is an exploration vote, which serves as the official mechanism for accepting the implementation of the most popular proposal. Bakers have three voting options: "YAY", "NAY", or "PASS". The exploration proposal must be approved by both a quorum and a supermajority to move to the next phase.
Tezos Cool-down Period: After the exploration phase, the next phase is the “Cool-down Period”. The cool-down period only begins when a proposal is approved in the exploration phase. The cool-down period allows time for ecosystem coordination and preparation for the upcoming Promotion Phase and proper implementation of the upgrade.
Tezos Promotion Phase: The promotion phase offers a final vote to address potential bugs or issues in the upgrade proposal. Bakers vote "YAY," "NAY," or "PASS," with the proposal requiring a quorum and supermajority approval. If passed, it moves to the final phase; the adoption phase.
Tezos Adoption Phase: The last phase of Tezos upgrade is the adoption phase. This is a two-week period that gives developers and bakers enough time to update their software.

What Is the XTZ Coin?

XTZ is the Tezos network's native coin that powers the Tezos blockchain. XTZ coin holders have the ability to vote on Tezos protocol proposals. The XTZ coin plays a vital role in maintaining and governing the Tezos network. It can be used by smart contracts and decentralized applications built on Tezos to facilitate transactions.

XTZ coins can also be adopted as a digital currency for buying and selling purposes. Furthermore, XTZ is employed in securing the Tezos network and is involved in network decision-making by Bakers. Users who own and bake XTZ have the opportunity to vote on network upgrades, which is extremely beneficial for Tezos users.

Tezos (XTZ) Tokenomics

Tezos (XTZ) Statistics

Token Symbol: XTZ

Total Token Supply: 989,368,039 XTZ

Market Capitalization: $909 Million

Trading Price: $0.9393

Cryptocurrency Rank: #68

Features of Tezos

Below are some of the features of Tezos blockchain that make it an interesting option for developers to build smart contracts and decentralized applications:

Ability to Evolve without a Fork: This is the core value proposition offered by Tezos, Tezos blockchain can evolve with stakeholders' consensus and voting done by “Baker” with community approval.
Network Meta-Upgrades: Tezos supports upgrades that enable both the network and dApps and smart contracts built on it to evolve with new technologies.
Democratic Governance: Tezos promotes democratic and decentralized governance, allowing all network stakeholders to participate in decision-making processes, including network upgrades, with support from the Tezos community.
Liquid Proof-of-Stake Consensus: Tezos utilizes the Liquid Proof-of-Stake consensus for validating transactions, with validators known as Bakers. Bakers are decentralized entities that vote for network upgrades.
Tezos Evolution Phases: Tezos Network Upgrades go through several evolution phases, including Proposal, Exploration, Cool-down, Promotion, and Adoption. These phases ensure thorough vetting and community involvement in Network Upgrades.

How to Buy and Trade XTZ?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including XTZ, users can now trade easily and seamlessly. To purchase XTZ cryptocurrency on CoinEx, follow the steps below.

Create an Account: Start by signing up for a CoinEx account.
Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
Navigate to XTZ Trading Page: Once your account is funded, go to the dedicated XTZ trading page on CoinEx. You can find a search box and enter the term XTZ to swiftly locate the trading pair associated with XTZ tokens.
Choose a Trading Pair: Select the trading pair XTZ/USDT if you'd like to trade XTZ against USDT (Tether).
Specify the Purchase Amount: Determine the quantity of XTZ tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order.

By following these comprehensive steps, you can easily trade XTZ tokens on CoinEx, taking advantage of the available trading pairs.

What Is Tezos and How to Buy XTZ Tokens?