What's Tezos (XTZ)？

Tezos is an open-source blockchain platform that can be used to execute peer-to-peer transactions and deploy smart contracts. It employs a proof-of-stake mechanism for achieving consensus and adopts an on-chain governance model. In this model, the protocol can be modified when upgrade proposals receive favorable votes from the community. Tezos' testnet was launched in June 2018, and its mainnet went live in September 2018.

History of Tezos (XTZ)

Team

Tezos (XTZ) was founded by the husband-and-wife team Arthur Breitman and Kathleen Breitman. Arthur Breitman, one of the co-founders of Tezos, is a computer scientist with a background in finance and quantitative trading. Kathleen Breitman, also a co-founder of Tezos, holds a bachelor's degree in literature and has worked as a strategic consultant at Accenture. Together, this couple co-created Tezos and played pivotal roles in driving and developing the project during its early stages. Their vision was to establish a blockchain network with self-amending capabilities and built-in governance mechanisms to facilitate secure and scalable smart contracts and decentralized application usage. Arthur Breitman and Kathleen Breitman have been instrumental in the development of Tezos, contributing significantly to the project's progress and innovation, thus making important contributions to the advancement of blockchain technology.

History

• In 2014, the concept of Tezos was proposed by the husband and wife duo Arthur and Kathleen Breitman.
• In 2015, to develop Tezos, Arthur Breitman registered a company named Dynamic Ledger Solutions Inc (DLS) in Delaware and appointed himself as the CEO. He entered into a contract with the French company OCamlPro to assist in the software development.
• In 2016, Arthur Breitman left Morgan Stanley, and Tezos received an investment of $612,000 from 10 supporters for its initial coin offering (ICO).
• On July 1, 2017, the Tezos Foundation raised $232 million in Bitcoin and Ethereum, becoming one of the largest ICOs at the time.
• In September 2018, Tezos went live.
• In 2020, Tezos founders resolved legal issues, and the Tezos Foundation paid $25 million before a federal court ruled on whether the ICO constituted the sale of unregistered securities.
• In 2021, Arthur Breitman joined the foundation's board of directors.

How does Tezos (XTZ) Work?

Tezos (XTZ) is an advanced blockchain network that supports the development of decentralized applications (DApps) and the encoding of smart contracts. Tezos employs a consensus mechanism called "Liquid Proof-of-Stake" (LPoS), which is an upgraded version of the Proof-of-Stake (PoS) system. The LPoS mechanism makes Tezos a highly decentralized blockchain with approximately 450 validators and 13,000 delegates in the network. Tezos' governance model utilizes on-chain governance, allowing XTZ holders to vote on the network's future direction. Additionally, the native token of Tezos, XTZ, can be used to pay transaction fees, participate in governance processes, and serve as a store of value. Tezos also employs a self-amending network model, enabling upgrades without the need for forks. The smart contracts and token issuance on Tezos are facilitated through the LPoS mechanism.

Tokenomics

Token Utility

• Paying Transaction Fees and Smart Contract Execution:XTZ tokens can be used to pay transaction fees on the Tezos blockchain, such as fees for purchasing NFTs or interacting with Dapps.
• Participating in Governance:XTZ token holders can engage in the governance process of the Tezos network, including voting on protocol changes. Users with more tokens have greater influence in the governance process.
• Verification and Rewards:Users holding XTZ tokens can participate in verifying transactions and blocks by staking their tokens and receive corresponding rewards. Tezos has an annual inflation rate of approximately 5.5%, introducing around 80 XTZ tokens per block (per minute), and the inflationary rewards are distributed entirely to Tezos validators. Over 70% of XTZ is used for staking, which helps offset the dilution caused by inflation.

Token Distribution

• ICO: 80.00% of the total token supply
• Tezos Foundation & Dynamic Ledger Solutions (DLS): 20.00% of the total token supply

Why is Tezos (XTZ) Valuable?

• Innovative Blockchain Technology:Tezos represents a new generation of blockchain technology that allows coin holders to participate in technical upgrades and iterations through voting. The majority of the project's code and algorithms are capable of self-correction, largely avoiding the hard fork issues often associated with traditional blockchain upgrade systems.
• Liquid Proof-of-Stake (LPOS) Consensus Mechanism:Tezos utilizes the Liquid Proof-of-Stake (LPOS) consensus mechanism, distinguishing itself from Ethereum (1.0), which uses Proof-of-Work (POW). LPOS provides higher transaction processing speed (TPS).
• Self-Governance and Upgrades:Tezos holders can either stake tokens to run nodes or indirectly participate in governance by delegating tokens to "bakers." This allows them to engage in technical upgrades and iterations, minimizing the risk of forks and achieving stable upgrades.
• Highly Decentralized:Tezos nodes, referred to as "bakers," currently number over 450, with no predetermined limit. The network's decentralization is enhanced by the global distribution of these bakers, contributing to a highly decentralized community.
• Development Towards Regulatory Compliance:Tezos has been moving towards regulatory compliance, announcing business collaborations with various countries and enterprises. This includes Security Token Offerings (STO) involving real estate and financial services, positioning Tezos as a leader in advancing compliance in this direction.
• Market Recognition:Tezos raised $232 million in its 2018 ICO, setting a record at the time. Additionally, Tezos has achieved a market capitalization ranking among the top 10 globally.
• Continuous Development of Use Cases:Tezos consistently explores and develops new application scenarios, including interactions with various decentralized applications (Dapps) and payment for various fees or services on the Tezos blockchain.

Highlights

• September 29, 2022:McLaren Racing announces the launch of a 7-page comic NFT on the official technical partner Tezos during the Singapore and Japanese Grands Prix (October 1-7, 2022).
• December 8, 2022:Tezos collaborates with the crypto payment platform MoonPay to support users in minting and purchasing NFTs using credit cards or debit cards with fiat currency.
• December 28, 2022: The French National Rugby League announces the launch of the NFT platform Legendary Plays on Tezos.
• February 3, 2023:According to GlobeNewswire, gaming giant Ubisoft partners with decentralized storage and computing network Aleph.im to introduce fully decentralized AAA-grade game NFT smart contracts on the Tezos blockchain.
• February 22, 2023:Google Cloud announces its role as a verification node on the Tezos network, enabling Google Cloud's enterprise customers to deploy Tezos nodes.
• March 30, 2023:Public blockchain Tezos announces the activation of the 13th core protocol upgrade "Mumbai," introducing the Layer 2 scaling solution Smart Rollups. After the "Mumbai" upgrade, Tezos will provide a WebAssembly (WASM) execution environment, allowing developers to build on-chain using common programming languages such as Rust, C, and C++.
• August 23, 2023:La Poste Groupe, the French postal group, launches the NFT philately platform NFTimbre based on Tezos. The first set of NFT stamp collections designed by the renowned independent artist Faunesque will be released on September 18, priced at 8 euros, with a limited edition of 100,000 sets.