Tezos Price

What is Tezos (XTZ)?

Tezos is a blockchain platform designed for the deployment of decentralized applications (DApps) and the facilitation of smart contracts. It is known for its focus on community involvement and its ability to upgrade its protocol regularly. Tezos allows participants to engage in the network’s decision-making process through a staking mechanism called “baking.” This aims to address challenges faced by other blockchain networks, such as the lack of a formal governance process. 

XTZ is a native token of Tezos used for various functions within the platform. Tezos crypto can be used as a medium of exchange, for voting on protocol upgrades, and as a reward for developers whose upgrade proposals are accepted. Additionally, XTZ tokens can be staked to earn rewards and secure the network.

Who are the founders of Tezos?

Tezos was founded by Arthur Breitman and Kathleen Breitman. Arthur wrote the Tezos white paper under the pen name L. M. Goodman. According to him, one of the biggest issues of Bitcoin was the lack of a governance process that allowed the community of network users to contribute. 

The couple founded Dynamic Ledger Solutions, which developed the Tezos protocol’s underlying code. Later, the Tezos Foundation bought the company to acquire intellectual property rights related to the network. The founders have played an important role in shaping Tezos and its vision of decentralized governance.

What makes Tezos unique?

The main distinguishing feature of the Tezos network is its decentralized governance approach. Through the Tezos protocol’s on-chain governance, stakeholders can propose and vote for changes to the blockchain’s code. This is designed to allow the network to evolve and upgrade itself without requiring hard forks. Tezos also uses a staking mechanism called “baking,” where participants stake XTZ tokens to secure the network and actively participate in decision-making.

Additionally, Tezos has partnered with high-profile businesses like the French bank Societe Generale and Ubisoft. XTZ tokens can be staked on some of the top cryptocurrency exchanges.

How is the Tezos network secured?

The Tezos network is secured through a Delegated Proof-of-Stake (DPoS) consensus mechanism. Participants can stake their XTZ tokens and delegate them to specific “bakers” who validate transactions and maintain the blockchain’s integrity. he network also incorporates a penalty mechanism called “slashing” to deter malicious behavior. 

How many Tezos (XTZ) coins are there in circulation?

As of December 21, 2024,  the total supply of Tezos (XTZ) coins in circulation is $1,019,812,499. Tezos uses a self-amendment process, and the protocol allows the creation of new XTZ tokens through a mechanism called “baking.” Token holders can participate in baking by staking their XTZ tokens and supporting the network’s operations.

How do network consensus and validation work on Tezos?

Tezos utilizes a consensus mechanism called Delegated Proof-of-Stake (DPoS). In this model, stakeholders can participate in the network’s validation process by staking their XTZ tokens and delegating them to trusted “bakers.” Similar to validators, bakers are responsible for confirming the validity of transactions and securing the Tezos blockchain. Through their involvement, bakers earn rewards in proportion to the amount of XTZ they have staked. This consensus mechanism aims to ensure the efficient and secure operation of the Tezos network.

How decentralized is Tezos?

Tezos is a decentralized platform that empowers stakeholders to participate in network decision-making. The DPoS consensus mechanism allows XTZ holders to delegate their tokens and take part in securing the network. While there are minimum requirements for becoming a network validator, users can delegate their XTZ to chosen validators, thus participating in securing the network even without being a validator themselves. This design promotes decentralization by involving more participants in consensus and governance processes.

How is Tezos different from Ethereum?

Tezos and Ethereum are both smart contract platforms, but they differ in certain aspects. 

Tezos allows the network to evolve through on-chain governance, while Ethereum relies on off-chain upgrades. Also, Ethereum has a larger community, but Tezos significantly outperforms Ethereum in the number of transactions per second (TPS).

How to buy and store Tezos (XTZ)

To buy and store XTZ, you can follow these steps:

1. Set up an XTZ wallet or another wallet: Choose a reliable wallet compatible with Tezos, such as the native XTZ Wallet or Trust Wallet. Tezos’ website lists other options like Kukai, Ledger Nano, Atomic Wallet, Trezor, and Guarda.
2. Select a crypto exchange: Choose a reliable exchange that supports Tezos, such as Binance, Coinbase, or Huobi. Ensure the exchange offers XTZ trading pairs with your preferred fiat or other cryptos.
3. Make the purchase: Deposit funds into your chosen exchange account and use them to buy Tezos (XTZ). Follow the exchange’s instructions for buying XTZ with your selected currency. The current price of XTZ is $1.35.
4. Transfer XTZ to your wallet: Once the purchase is complete, withdraw your XTZ from the exchange to your Tezos wallet. This ensures that you have full control and ownership of your XTZ tokens.

How to add Tezos (XTZ) to MetaMask?

It’s not possible to add your XTZs to MetaMask directly, as MetaMask primarily supports Ethereum and Ethereum-compatible networks. However, there are alternative wallets that are specifically designed for XTZ tokens, like XTZ Wallet.

Does Tezos have a future?

Tezos has shown great potential, attracting the attention of big companies and the crypto community. However, predicting the future success of Tezos and the price of XTZ is difficult as it will depend on too many factors, such as its technological development, user adoption, possible regulatory issues, market demand, and competition within the crypto world. 

Is XTZ a good investment?

Tezos coin had a strong initial surge after its launch in 2017. XTZ’s price reached over $12 from under $2 in two months. However, the price of the coin quickly retraced below $4. In 2020, Tezos experienced another rise, with XTZ price reaching peaks of $5.58 in February, $8.40 in May, and $9.18 in October.

As of December 21, 2024, XTZ stands on the 95 position, with a market capitalization of $1,373,571,713. Its price has experienced a 46.72% change over the past year.

Remember that past performance is not a guarantee of future results. Cryptocurrency investments carry significant risks, including price volatility, regulatory uncertainties, and market fluctuations. Assess your risk tolerance and do your independent research before making any investment decisions.

Where is the best place to stake Tezos (XTZ)?

Tezos staking is available on several major platforms, including Binance, Coinbase, and Kraken. It’s important to check each platform’s staking terms, rewards, lock-up periods, and potential fees. Additionally, consider the platform’s security measures, customer support, and overall reputation within the crypto community.