Why You Should Consider Tezos (XTZ) Token
Tezos was in the limelight some months ago after the company signed a partnership deal with one of football’s biggest teams, Manchester United. The ‘Red Devils‘ now have ‘Tezos‘ on the training kits which made the company more popular.
Tezos is one of the growing crypto assets today. Although the popular ones are Bitcoin, Ethereum, and USDT, other cryptocurrencies are being created which give investors options for investment.
In this post, we’ll look at where Tezos stands among other crypto assets. We’ll also look at what it has to offer as a digital asset. This will help investors/traders who want to diversify their portfolios.
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What is Tezos (XTZ)?
Tezos is a blockchain network that’s based on smart contracts, in a way that’s not too dissimilar to Ethereum. The project’s token is known as Tezos and it trades by the symbol ‘XTZ’.
The technology underpinning Tezos was first proposed in a white paper that was released in September 2014. It however made its official debut in 2018.
Tezos was founded by Arthur Brietman (also wrote the Tezos whitepaper) who along with his wife, Kathleen founded a startup called Dynamic Ledger Solutions. The company was tasked with writing the code that would underpin the Tezos protocol. This company was subsequently purchased by the Tezos Foundation to ensure that it owned all of the intellectual property rights relating to the network.
How Does Tezos Differs From Other Crypto Assets
Tezos has similarities with Ethereum but still have their differences. Tezos aims to offer infrastructure that is more advanced — meaning it can evolve and improve over time without there ever being a danger of a hard fork. For this reason, it has solved one of the shortcomings of both Bitcoin and Ethereum.
It’s whitepaper states that it open-source platform bills itself as “secure, upgradable and built to last”. Its smart contract language also provides the accuracy that is required for high-value use cases.
Although staking is common across blockchains, Tezos has a unique twist on this process. Participants can get involved with the network’s governance through “baking,” where they effectively stake 8,000 XTZ. This creates a financial incentive to act honestly.
Tezos is also unique because of how it has started to be used by high-profile businesses. In September 2020, it was announced that the French banking giant Societe Generale planned to use this blockchain for experimenting with a central bank digital currency.
Tezos also stand out as one of the few crypto assets to be supported by the world leading exchanges, Binance and Coinbase. This means users can receive rewards based on the XTZ that they hold.
What is Tezos (XTZ) Worth in the Crypto Market?
Tezos is listed among thousands of crypto assets by both CoinMarketCap and Coin Gecko. According to CoinMarketCap, Tezos (XTZ) is ranked 47th as of the time of writing.
The current price of XTZ is $3.39 USD with a 24-hour trading volume of $132,567,662 USD. It has a live market cap of $3,014,648,928 USD. There are also 890,174,301 XTZ coins in circulating supply.
Tezos is available in most of the crypto exchanges worldwide.
How is the Tezos Network Secured?
Like Ethereum, Tezos use the proof-of-stake mechanism. This means that anyone can become a validator and contribute to the smooth running of the network by making a security deposit.
To incentivize honest behavior, rewards are given to those who work in the best interests of the blockchain. Those who act dishonestly risk losing their stake altogether.
Why Consider Tezos (XTZ) Token?
Thousands of tokens exist in the crypto world today out of which some are profitable while there also the fake ones. If you need to diversify your portfolio, listed below are the reasons why you should consider Tezos token.
1. The project is solving a problem
Tezos has a clearly written whitepaper which aims to solve a problem. This open-source platform bills itself as “secure, upgradable and built to last” — and says its smart contract language provides the accuracy that is required for high-value use cases.
According to Tezos, its approach means that it is futureproof and will “remain state-of-the-art long into the future,” meaning it can embrace developments in blockchain technology.
2. The project’s whitepaper can be scrutinized
A token’s whitepaper is where you’ll find the team’s aim for the project and the token’s use cases. Tezos’ whitepaper was written by Arthur Breitman — and in a nod to Satoshi Nakamoto, he wrote his works under the pen name L. M. Goodman.
All what the project has to offer are clearly shown in it’s whitepaper. It also shows that it was not a copy and paste from another project. It aims to correct the shortcomings of both BTC & eth.
3. It is becoming mainstream
Tezos’ publicity with Manchester United makes it a popular digital asset. Just as Cronos is set to have a big effect with its partnership deal as sponsor of the FIFA world cup, Tezos is also taking the sporting route to become bigger.
4. It is unique
Tezos staking is different from other blockchains. Participants can get involved with the network’s governance through “baking,” where they effectively stake 8,000 XTZ. This creates a financial incentive to act honestly.
Bakers are tasked with voting on proposed changes to the blockchain’s code in a four-step procedure that takes approximately 23 days. Proposals that receive support from the vast majority of participants are put through their paces on a testnet for 48 hours and are fully implemented if they are backed by a super-majority.
Is it Safe To Invest In Tezos?
Cryptocurrency in general is not without risk due to its volatile nature. Return on investment is not guaranteed as you can lose all you put into it.
Tezos however has credibility as a digital asset of value. That doesn’t mean it can no make you lose money if care is not taken. You need to put the amount you can afford to lose why study the asset you are investing on your own.
Tezos is one the fastest-growing digital asset today. The opportunity it provides make it a hot cake in the market. However, just like every other crypto asset, you need to watch out before investing.
Also Read– 7 Things You Should Know Before Getting a Token