What Is Tezos (XTZ)? Price, History & Where To Buy

Tezos (XTZ) claims to be a self-amending blockchain and was initially created in 2014. The Tezos blockchain prioritizes XTZ token holders, allowing them to vote on proposals and participate in on-chain governance.

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Its novel design would essentially alter blockchain taxonomy – the project raised more than $230 million in 2017.

Tezos (XTZ) has grown to become one of the most popular crypto projects in the blockchain space and is currently the 42nd largest cryptocurrency in the world by market capitalization.

How Tezos (XTZ) Works

Tezos blockchain offers many of the same features as other blockchains. It does, however, also incorporate a novel consensus mechanism called liquid proof of stake.

XTZ holders participate in ”baking” which is essentially staking XTZ tokens. This process helps streamline the process of transaction facilitation. Users from around the world help to uphold the security and integrity of the Tezos network.

The Tezos platform also enables smart contracts and ”bakers” can participate in proposals affecting the Tezos protocol.

The self-amending feature of the Tezos blockchain can essentially be broken down into two codes: Shell and Protocol.

Shell – Code is amended in response to user voting. It is also tasked with administrative operations and interpreting transactions.

Protocol – Code that is tasked with sending various proposals to the Shell for review.

Tezos smart contracts also function similarly to other blockchains, allowing for enhanced network efficiency and security.

Essentially, XTZ holders are incentivized to hold the token because it grants them governing rights for proposals and upgrades that affect the network.

What Is Tezos (XTZ) Used For?

XTZ is the governance token of the Tezos network. Users that own and ”bake” their XTZ tokens can participate in voting. The token’s utility is very similar to most other blockchain projects’ native tokens. For example, ETH is the native currency of the Ethereum network – the XTZ cryptocurrency is also the native cryptocurrency of the Tezos network.

Additionally, individuals can interact with decentralized applications in the Tezos network. This provides XTZ token holders with the opportunity to earn yields from interacting with DeFi apps in the Tezos ecosystem.

Many individuals also trade XTZ tokens because of the token’s price volatility – it experiences price fluctuations which make it favorable for arbitrage or swing trading.

Some centralized exchanges also offer XTZ holders rewards for staking XTZ tokens for a certain duration, normally anywhere from 30 days to 1 year.

Where To Buy Tezos (XTZ)

Tezos (XTZ) tokens can be purchased on most cryptocurrency exchanges. Many of which don’t require any formal verification to trade. The XTZ token experienced its most significant price appreciation in March 2021, when the token reached its all-time high of $8.70.

Five of the most popular crypto exchangesare:

1. Binance (US Customers use Binance.US)
2. Gate.io
3. Coinbase
4. KuCoin
5. Bitfinex

Many individuals prefer to keep their tokens off-exchange in digital or hardware wallets. This is considered to be the most secure option and is devoid of hacks that most exchanges experience from time to time.

Some of the most popular digital wallets and hardware wallets for Tezos can be found here.

About Tezos (XTZ)

How long has Tezos (XTZ) existed?

Tezos was first proposed in 2014 by husband and wife Arthur and Kathleen Breitman. The project was initially launched under the pseudonym “L.M Goodman”. The XTZ token was released at a later stage on the 30th of June 2018.

The XTZ cryptocurrency has seen significant price appreciation since its listing, and it experienced its highest trading volumes in October 2021.

What’s controversial about Tezos (XTZ)?

The blockchain space is booming with new projects, heightened trading volumes, and innovative networks that are revolutionizing the way people perceive finance. However, due to the explosive growth in the blockchain space, there is a considerable amount of risk associated when investing in any cryptocurrency.

Individuals should be especially cautious before investing in any project and do a substantial amount of research on the project, its history, its founders, and any other important factors surrounding the project.

Bearing that in mind, let’s take a look at the two biggest controversies surrounding Tezos (XTZ):

• Internal conflict – Any conflict taking place within an organization tends to have adverse effects on the company’s reputation and consequentially affect its future success. The Tezos ICO was surrounded by controversy, even after it managed to raise more than $230 billion.Essentially, agreements made between the founders and the president of the company weren’t upheld – this resulted in a considerable amount of controversy. Many internal disputes and claims occurred that later went on to diminish investors’ faith in the project.
• Securities fraud lawsuit – The Tezos ICO came under fire when a lawsuit was filed against Tezos. The $25 million lawsuit accused Tezos of selling securities, which is illegal. The legal action pursued was later ended, and Tezos won the case, however, significant damage had still been done to the reputation of the project.Network participants decreased and the project seemingly lost thousands of users because of the legal controversy surrounding Tezos.

How many Tezos (XTZ) tokens are there?

At the time of writing, Tezos (XTZ) has a circulating supply of 892,894,719.93 XTZ.

The total supply of Tezos (XTZ) is 914,508,894.

Can Tezos (XTZ) be mined?

Tezos (XTZ) is not a mineable cryptocurrency. Unlike Ethereum which uses a proof of work consensus algorithm, Tezos uses a novel liquid proof of stake consensus algorithm.

XTZ stakers, called ”bakers” can participate in the network, where they validate blocks and contribute to the creation of new blocks.

Tezos positions itself as the pioneer for dynamic ledger solutions, with its smart contract functionality, however, XTZ holders are essentially only eligible for voting on proposals.

Some centralized exchanges also offer staking rewards for users who lock up their XTZ tokens for a duration.

What is the market cap of Tezos (XTZ)?

The market cap of any cryptocurrency can be calculated by multiplying the total amount of coins in circulation with the current market price of the coin.

Tezos (XTZ) Market Cap = 892,894,719.93 XTZ x $2,50 = $2,23 billion (42nd largest cryptocurrency by market cap).

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Tezos And XTZ

Tezos was one of the first crypto projects to introduce governance utility for its native token. This garnered the project a substantial amount of support and differentiated it from other crypto projects. However, many native tokens from various projects incentivize holders with governance features.

The Tezos project plan, so what makes Tezos work, is relatively similar to a number of projects that are currently dominating the crypto space.

Tezos’ top competitors are:

• Solana
• Ripple
• Stellar
• EOS
• Avalanche
• Fantom

What Are The Future Plans Of Tezos Network and XTZ

Tezos has a history filled with controversies that have tainted the project’s reputation significantly. It was once poised as one of the most promising crypto projects but internal conflicts led to many investors losing faith in the project.

Additionally, the governance/voting rights that XTZ holders obtain when purchasing XTZ tokens has become a standard utility for most projects.

Essentially, there are many differentiating factors for Tezos when comparing it to the majority of crypto projects. It is competing against projects that are fresh and offer real-world utility, as well as advanced features.

The Tezos foundation has however announced its intention to continue developing and building more utility. The Tezos blockchain has proved to be reliable, secure, and scalable – the team will continue its endeavors towards bolstering the blockchain even further.

Most recently, the project has announced that it has slashed the barrier to becoming a ”baker” by 25% – making it more affordable to become a network participant that earns yields.

The Tezos ecosystem is also experiencing gradual growth, and with the addition of useful decentralized applications, the Tezos network can expect significant user adoption and growth.

Pros And Cons Of Tezos Network And XTZ Token

Pros:

• Energy-efficient blockchain – Tezos incorporates liquid proof of stake, a novel consensus mechanism that uses significantly less computational power than other proof of work blockchains.
• Smart contract functionality – The use of smart contracts bolsters the abilities of the Tezo network. New users can benefit from the blockchain technology.
• Successful initial coin offering – The Tezos ICO raised more than $230 million.
• Governance utility – XTZ holders have voting rights for on-chain governance and off-chain governance proposals. Additionally, if they hold enough tokens they could qualify to be able to validate transactions and earn rewards.

Cons:

• Lawsuits – Tezos has become notorious for controversy. After a very successful ICO, the project went on to fall victim to a number of lawsuits. Most notably, the team was accused of selling securities. The lawsuit against Tezos was eventually dismissed but still wreaked havoc on the project’s reputation.
• Competitors – Tezos has been around for many years and became a very popular project for a while. The release of the white paper created an immense amount of excitement around the project but recently, that excitement has diminished significantly.There is a multitude of projects which provide users with the same features, and even better features, than the Tezos network. For this reason, many believe that Tezos doesn’t stand a chance against its staunch competition.