Tezos ecosystem guide

Aren’t we all waiting for that one big bang to happen? You guessed it right; I am talking about the mainstream adoption of blockchains. And when we see gaming giants like Ubisoft partnering with Tezos, we feel elated.

However, Tezos native token, $XTZ, has already rallied from $2 to $9 this year back. Is it worth the risk in the current market state? In this article, you will discover everything about Tezos’s ecosystem.

What is Tezos?

Tezos is an open-source Proof-of-Stake blockchain. It supports digital assets and applications that can be upgraded with a formal verification process, where stakeholders take control of it.

Tezos’s best use case is for financial use cases like digital assets. Anything with considerable real-world value and requires assurances that funds will not be lost or frozen due to code faults.

Therefore, competing against blockchains like Ethereum, Cardano, and Tezos supports developing smart contracts and dApps (decentralized apps) that cannot be censored or shut down by external parties. 

But, some features make Tezos different from other PoS protocols:

  1. Formal verification is easier: Users and developers avoid costly transactions. 
  2. Tezos allows every stakeholder to participate in the consensus process: As a result, every participant get rewards for contributing to the network’s security and stability.
  3. It is less expensive than alternative consensus processes: Lowers the entry barriers to participation.
  4. If you are a user who does not want to engage in the consensus process directly: You might delegate your privileges to other users who will do so on your behalf while you earn the rewards too.

Look at this now, Tezos is one of the most energy-efficient blockchains in the ecosystem, consuming 0.00006 TWh per year. To give you an idea, that doesn’t even represent 0.001% of what Ethereum consumes per year (26TWh)

Tezos energy consuption

Source: Wiki Tezos

Tezos Team & Tokenomics

Tezos is backed by the Tezos Foundationa Swiss foundation supervised by the Swiss Federal Foundation Supervisory Authority. 

Also, PwC, one of the most prestigious audit companies worldwide is constantly auditing the Tezos Foundation, having more than USD 1.2 billion in assets and more than USD 233 million in committed funds.

On the other hand, Tezos’s native token, $XTZ, has a deflationary model currently trading at USD 5.21 with a marketcap of USD 4.5 billion and a 24-hour trading volume of USD 867 million. Moreover, its circulating and initial total supply are 869 million and 10 billion tokens, respectively. 

 Moreover, the $XTZ is a multi-purpose token that offers the following advantages:

  • Pay transactions fees in the Tezos ecosystem.
  • Pay transactions fees in the execution of the smart contracts.
  • Official currency for Validators’ (bakers) income
  • Stake $XTZ on the network to validate transactions and blocks. 
  • Voting rights in the governance protocol.

On the other hand, It’s important to mention that one of the most important parts of the Tezos’ PoS consensus mechanism is their validators, called “bakers.” Here are some stats of the Tezos’s network:

Tezos ecosystem stats

Source: Tezos Explorer

Bakers, whom we know as validators play an essential role in the Tezos network. And for that, they earn hefty rewards. Looking at its stats. 369 validators, an almost 72% staking ratio sounds impressive and makes Tezos a highly decentralized network with higher staking leading to more network security and $XTZ price pumps.

Tezos Ecosystem and Use Cases

Tezos has a very robust platform for developers, where anyone can:

  • Have access to basic introductory materials.
  • Write smart contracts with many types of languages and then the software will traduce it to Michelson, the official coding language of Tezos.
  • Chose from a vast collection of libraries to integrate Tezos with your dApp.
  • Have scholarships from the Tezos Foundation to develop its blockchain.

Also, Tezos’s ecosystem has other tools that make it easier to explore. On the other hand, Tezos’ technology has been used in enterprise/government projects like for example:

  • MoneyTrack is a “directed money” payment platform that digitizes, protects, and manages directed money flows.
  • Global POS – Easy Wallet A payment software editor created a real-time retail payment system. The solution integrates current payment terminal software with a mobile wallet application for consumers.
  • WereNode A startup that allows you to pay for an electric automobile at a charging station using your mobile money.
  • Skillz This business will administer and monitor your blockchain applications, allowing you to choose the infrastructure and area that best suits your needs (i.e., Azure, Scaleway, GoogleCloud, AWS – relying on Kubernetes open-source application containers).

Tezos Latest News & Roadmap

Here are the latest news related to the Tezos ecosystem:

Tezos has partnered with Pantone to explore the digital art world. On the other hand, Tezos allied with Rarible to make Tezos’s NFTs placed in this popular marketplace.

Moreover, Tezos’s NFTs were displayed at Art Basel Miami Beach 2021 exposition, which exposed nearly 5000 NFTs from 26 artists from 15 countries worldwide. Finally, Tezos developed a two-week hackathon in Africa to incentivize web3 development.

On the other hand, Tezos has launched the 8th and last upgrade called “Hangzhou.” Before this milestone, Tezos has distributed its roadmap in different upgrades.

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